Pros and Cons of Using RevPAR as a Hotel KPI
Pros
- A straightforward formula thanks to simple math and a relatively small number of factors
- Easy to digest number
- Built for easy comparison across hotel types, regardless of offerings
- Its measurement helps with yield management, which focuses on maximizing revenue regardless of extraneous factors
- It can be a leading indicator of profitability
Cons
- RevPAR doesn’t factor any revenue streams aside from room sales, so it may not…
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