Revenue management starts with measuring the right things. These three metrics give you a clear picture of how your hotel is performing.
Occupancy
The percentage of available rooms that were sold. Rooms sold ÷ rooms available × 100.
ADR (Average Daily Rate)
The average price earned per occupied room. Room revenue ÷ rooms sold.
RevPAR (Revenue per Available Room)
Combines occupancy and rate into one number. Room revenue ÷ rooms available (or ADR × occupancy).
| Metric | Tells you |
|---|---|
| Occupancy | How full you are |
| ADR | How well you are pricing |
| RevPAR | Overall room revenue performance |
Chasing occupancy with very low rates can reduce RevPAR. Raising rates too far can empty rooms. Good revenue management balances both.
