What is TRevPAR in hotels and how to calculate it?


When it comes to the hospitality industry, understanding key performance indicators (KPIs) is essential for optimizing guest experiences and boosting revenue. One such crucial metric is TRevPAR, which stands for Total Revenue per Available Room. TRevPAR goes beyond traditional revenue measurements and provides a comprehensive view of a hotel’s financial performance. In this blog post, we’ll go into the definition of TRevPAR, its calculation, significance, and how it differs from RevPAR (Revenue per Available Room).

What is TRevPAR?

TRevPAR is a powerful metric that offers hoteliers a full picture of their financial success. Unlike RevPAR, which only takes room revenue into account, TRevPAR considers all revenue streams generated by a hotel, including not only room revenue but also other sources such as food and beverage sales, spa services, and more. This broader scope enables hotel managers to assess the overall financial health of their establishment and identify opportunities for growth beyond room bookings.

How to Calculate TRevPAR?

The formula for calculating TRevPAR is relatively straightforward:

TrevPAR = Total Revenue / Available Rooms

To break it down further, let’s explore the components of the formula:

Total Revenue: This includes all revenue generated by the hotel, encompassing room revenue, food and beverage sales, conference room bookings, spa services, and any other income sources.

Available Rooms: This refers to the total number of rooms that are available for guests to book during a specific period, considering factors like maintenance and repairs.

For example, let’s say your hotel’s total revenue for a month is $300,000, and you have 150 available rooms. Using the formula, your TRevPAR would be:

TRevPAR = $300,000 / 150 = $2,000

This means that, on average, each available room is generating $2,000 in revenue.

Why Should You Use the TRevPAR Formula?

TRevPAR offers a more comprehensive view of a hotel’s financial performance compared to other metrics like RevPAR. By considering all revenue streams, hotel managers can make more informed decisions about pricing, marketing strategies, and resource allocation. TRevPAR helps in identifying areas where the hotel is excelling and areas that need improvement, leading to a more balanced and profitable business strategy.


How Do You Increase TRevPAR for Hotels?

Boosting TRevPAR involves a combination of strategies aimed at increasing revenue across various departments within the hotel:

1. Enhance Guest Experience:

Elevating the overall guest experience can lead to increased spending on additional services, such as dining, spa treatments, and entertainment. Implementing the right technology, like the one offered by DigitalGuest, can streamline guest interactions and create memorable experiences.

2. Upselling and Cross-Selling:

Train staff to effectively upsell and cross-sell services during guest interactions. Whether it’s upgrading to premium rooms or promoting special packages, these efforts contribute to higher overall spending.

3. Revenue Diversification:

Explore opportunities to introduce new revenue streams, such as hosting events or partnering with local businesses for mutual promotions. Hosting events or offering special packages can attract a diverse range of guests. Conferences, weddings, and themed weekends can significantly increase both room occupancy and additional spending.

4. Optimize Pricing:

Implement dynamic pricing strategies that adjust room rates based on demand fluctuations. This can help capture additional revenue during peak periods and maintain competitiveness during slower seasons.

5. Effective Marketing:

Develop targeted marketing campaigns to promote high-margin services and attract new customer segments.

6. Collaborations and Partnerships:

Form partnerships with local businesses for mutually beneficial promotions. For instance, collaborating with a nearby spa can drive more revenue for both establishments.

Implementing these strategies requires a deep understanding of guest behaviour and preferences, making guest experience platforms like DigitalGuest invaluable resources for hospitality professionals.

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What is the Difference Between TRevPAR vs RevPAR?

While both TRevPAR and RevPAR provide insights into a hotel’s financial performance, they differ in their scope and focus:

RevPAR (Revenue per Available Room):

This metric only considers room revenue and is calculated by dividing total room revenue by the number of available rooms. It’s a valuable measure of how well a hotel is monetizing its room inventory. Another way to calculate RevPAR is by taking the average daily rate (ADR) and multiplying it by the occupancy rate(OCC).

You can read more about RevPAR in our previous blog post

– TRevPAR (Total Revenue per Available Room):

TRevPAR, on the other hand, takes into account all revenue streams generated by the hotel, offering a more comprehensive view of financial success. It includes room revenue as well as income from various amenities and services, such as parking or spa.


While RevPAR is a useful metric for assessing room revenue specifically, TRevPAR provides a broader perspective on a hotel’s overall revenue generation capabilities.

TRevPAR is a powerful tool that goes beyond traditional revenue metrics to offer a more holistic understanding of a hotel’s financial performance. By considering all revenue streams, hotel managers can make strategic decisions that lead to improved guest experiences and increased profitability. DigitalGuest provides cutting-edge solutions to enhance guest experiences and optimize revenue strategies.

Elevate your hotel’s performance with TRevPAR insights and take your hospitality business to new heights. Remember, in today’s competitive landscape, understanding and leveraging metrics like TRevPAR is a crucial step toward success. Book a free demo to find out how DigitalGuest can help your hotel to maximize revenue!

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