Calculate revenue potential
What is Total Revenue per Available Room (TRevPAR)?
TRevPAR counts every department, not just the bedroom. Rooms, food and beverage, spa, banquets, laundry, parking, tours.
For a bed and breakfast, TRevPAR and RevPAR land close together. For a full-service hotel with a restaurant, a spa and a function room, the space between the two numbers is most of the business.
If you run more than rooms, RevPAR is watching one department and quietly ignoring the rest.
TRevPAR formula
Total revenue ÷ Available room nights
Your 40-room hotel took $180,000 across every department last month, against 1,200 available room nights.
$180,000 ÷ 1,200 = $150
Set that beside your RevPAR of $91. The $59 gap is what each room earned outside the room. Most hotels have never once measured it.
How to calculate your property's monthly and yearly TRevPAR
Add up every department for the period. Rooms, restaurant, bar, room service, spa, events, banquets, laundry, parking, minibar. If a guest can pay for it, it belongs in the total. Then divide by your available room nights for the same period.
Run TRevPAR and RevPAR on the same chart. The gap between the two lines is your non-room revenue per available room, and it is the fastest read you have on whether your food and beverage is pulling its weight.
Yearly is useful for benchmarking against similar hotels. Monthly is where you will notice a quiet restaurant before it becomes a quiet year.
Why is TRevPAR important?
TRevPAR is how you find out whether your guests are spending with you or simply sleeping with you.
Your TRevPAR sits close to your RevPAR. Your guests sleep here and spend elsewhere. Every dinner they eat down the road is revenue you already paid to acquire and then watched walk out. Of everything on this page, this is the biggest gap and the cheapest to close.
Your TRevPAR is comfortably above your RevPAR. Non-room revenue is working. Now find out which department is carrying it, and whether it is carrying profit or only turnover. GOPPAR will answer that.
Your TRevPAR grew but your RevPAR did not. Events and banquets are filling the calendar while your rooms sit empty. Check whether your event enquiries are being asked about accommodation at all. Usually they are not, and the fix is one question at the booking stage.
One caution. TRevPAR measures revenue, never margin. A banquet that loses money still lifts it. Never read TRevPAR without GOPPAR beside it.
4 strategies to improve your property's TRevPAR
Your guest is already on the property. Each of these gives them one more reason to spend there.
1. Make the first offer before arrival
A guest decides where to eat dinner before they reach your lobby. A short message the day before check-in reaches them while the decision is still open. After check-in, you are competing with the restaurant they already chose.
2. Let one bill cover everything
When the spa treatment, the two beers and the late checkout all land on the room folio, guests spend more and your team chases less. Friction at the point of payment is the quietest cap on non-room revenue there is.
3. Sell the space you already heat
An empty function room on a Wednesday costs the same to own as a full one. Local meetings, small parties, training days, community events. The room is already there and already paid for.
4. Report revenue by department, every month
A single total hides which department is growing and which is drifting. Split it, put the split in front of your heads of department, and the number starts to move on its own.