# Question: What Is RevPAR Formula?

## What is the difference between ADR and RevPAR?

There are two important indicators: ADR or ARR (average daily rate or average room rate) and Revpar (revenue per available room).

ADR or ARR: it is the average price of each room sold per day.

Revpar: it is the average price of each available room per day, per month or per year..

## How do you calculate RevPAR index?

To calculate the index you need to divide your RevPAR with the aggregated group of hotels’ RevPAR and multiply it by 100. So, if your hotel’s RevPAR is \$70 and the groups is \$50 your RevPAR index will be 140 and you’ll be easily getting more than your expected market share.

## What is the formula for RevPAR quizlet?

– Revenue per Available Room (RevPAR) is total room revenue divided by total rooms available. – dollars and cents.

## Why is RevPAR so important?

RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. RevPAR is important because it helps hoteliers measure the overall success of their hotel.

## What is a RevPAR index?

RevPar Index, is a measure that originates from RevPar. It focusses on comparing your hotels RevPar with the RevPar of the hotels in your competitive set. This calculation will allow you to see how well you are executing your sales and revenue management strategies relative to your competition.