ARPAR, yet another RevPAR metrics replacement

The hospitality industry has been offering a few other indexes in the recent years that tried to compete with RevPAR. A more accurate, performance indicator is Adjusted RevPAR, which provides a clear reflection of the “bottom line profit”.

RevPAR is not the most perfect index for measuring a hotel’s actual productivity (or, the Revenue Management and pricing strategy, to be exact), regardless of the widely spread opinion in the hotel industry. This statistic does not objectively reflect the performance (and profitability) of your hotel, due to the following:

– It does not take CPOR into account (costs per occupied room). You can’t tell what optimal occupancy you need to reach by only looking at your RevPAR.

– It does not take into consideration any additional income a hotel may have from other revenue-generating departments (restaurants, meeting space, banquet rooms, casinos, parking, spa, etc.)

Read more

By: Ira Vouk (A successful Revenue Manager at multiple hotel properties)

The above is an extract of the original article available at: HospitalityNet

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About RezNext

RezNext is the world’s only true Real-Time Distribution Management Solution provider. It empowers hotels to adopt a distribution strategy that simplifies the complex global distribution environment and makes it understandable and manageable. It is integrated with revenue management, operating intelligence and powered with reputation management insights. RezNext’s portfolio of offerings include Rate & Channel Manager, Revenue Management, Online Reputation Management, Website Designing and Web Booking Engine, Mobile solutions, Central Reservation System, Business Intelligence, Property Management System (PMS) two-way connect, GDS and OTA Interface and Loyalty & Feedback Management. Our growing range of solutions can be access by hospitality properties across market segment and size, such as independent hotels, chain hotels, business hotels, resorts, clubs, service and limited service apartments, spas, restaurants and others.
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