RevPAR vs. NetRevPAR: Why Your Most Popular Metric is Misleading
💸 In the hotel industry, RevPAR has long been the key performance metric, but it overlooks the cost of acquiring guests. Case in point: A $200 Booking.com reservation nets $160 after commissions, while a $180 direct booking nets $176, being 10% more profitable. NetRevPAR, which factors in Customer Acquisition Costs, offers a clearer profitability perspective. Automated tools like Demand Calendar streamline this analysis, helping hotels shift from volume-focused to profit-driven strategies.
Share