REVPAR & MARKET

SHARE
BY ADE ROY RENALDO
1. Occupancy
BEFORE YOU
2. Rooms Revenue KNOWS!?
3. Total Revenue
4. Average Daily Rate (ADR)
5. Revenue Per Available Room (RevPAR)
6. Market Share based on Number of -KEYWORD
Rooms Sold
7. Market Share based on Revenues
8. Yield Management
9. Operating Efficiency Ratio
10. Profit Margin
Occupancy
Occupancy (Occ)

Occupancy is the percentage of available rooms that were sold during a

specified period of time or Occupancy has function to know the average room

sold. Occupancy is calculated by dividing the number of rooms sold by rooms

available

Occupancy = Rooms Sold / Rooms Available *using percent

Room Revenue
Room Revenue

Total room revenue generated from the sale or rental of

rooms.
Total Revenue
Total Revenue

Revenue from all hotel operations, including rooms sold,

F&B, parking,

laundry, phone, miscellaneous, etc.

Average Daily Rate (ADR)
ADR (Average Daily Rate)

A measure of the average rate paid for rooms sold, or ADR

has function to know the average room rate daily,calculated

by dividing room revenue by rooms sold

ADR = Room Revenue / Rooms Sold

RevPAR
RevPAR (Revenue Per Available Room)

Revenue per Available Room (RevPAR) is the total guest room

revenue divided by the total number of available rooms. RevPAR

differs from ADR because RevPAR is affected by the amount of

unoccupied available rooms, while ADR shows only the average

rate of rooms actually sold.

Occupancy x ADR = RevPAR

Revenue per available room (RevPAR) is an important metric

used to measure financial performance in the hospitality

industry. The metric, which is a function of both room rates and

occupancy, is one of the most important measures of health

among hotel operators. The RevPAR provides rooms revenue

information for each available room, which enables managers

and operators to compare their performance to their

competitors with varying sizes.

-Dr. Gursoy from HotelSimulation.com

RevPAR Implementation
Market Share Overview
Market Share In Hospitality
Market Share is the number of rooms in our hotel as a

percentage of the rooms in our hotels competitive market

set. Market Set is the total number of rooms we are in

direct competition with, within our areas market and/or

segment.
Market Share based on Number of
Rooms Sold
Market share based on number of rooms sold refers

to the percentage of a market's total room sales that is

sold by a particular company over a specified time period.

Market share is calculated by taking the company's total

room sales over the period and dividing it by the total

number of rooms sold in the market over the same period.

Market Share based on
Revenues
Market share based on revenues refers to the percentage

of a market's total rooms revenue that is generated by a

particular company over a specified time period. Market share

based on revenues is calculated by taking the company's

rooms revenue over the period and dividing it by the total

rooms revenue in the market over the same period.

Q & A SESSION
References
www.hotelsimulation.com
www.jill.com/hospitality
www.hospitalitynet.org Access at 05 October 2016
www.revparmanagement.com
www.hvs.com/sg
www.strglobal.com