What is RevPAC? — Next-Generation KPIs for Hotel Performance
RevPAC (Revenue per Available Customer) is a performance indicator that measures a hotel's total revenue generated per guest. It includes not only room revenue, but also all other revenue streams such as restaurants, spas, parking, shops, and late checkouts. It is calculated by dividing total revenue by the "number of guests" during that period:
🔹 RevPAC = Total Hotel Revenue ÷ Number of Guests
This metric goes beyond traditional indicators like RevPAR and ADR, highlighting "guest-based revenue generation."
Why is RevPAC Important?
RevPAC shows the hotel's total revenue generation power beyond room revenue. It plays a critical role in the following ways:
- 🍽️ Reveals guest spending behavior (F&B, spa, additional services).
- 🔁 Identifies revenue leaks and enables preventive measures.
- 📊 Enables performance comparison between different hotels.
- 📈 Triggers the development of implementation and upsell strategies on low-revenue days.
Key takeaways:
- RevPAC makes non-room revenue visible.
- It provides an advantage in comparing portfolio performance.
- Strategic action can be taken if RevPAC is low.
Factors Affecting RevPAC
RevPAC is not solely influenced by room rates. The main factors that increase or decrease revenue per guest are:
🛏️ Room Mix and Pricing
Suites, upgrades, and premium products can increase guest value.
🍷 Additional Revenue Streams
F&B, spa, parking, shops, and other activities significantly increase revenue per guest.
🧍 Guest Segment and Length of Stay
A business traveler and a family vacationer create different spending profiles.
📣 Marketing & Distribution Channels
Direct booking and loyalty programs typically yield higher RevPAC. (SiteMinder)
⚙️ Operational Implementation
Operational elements such as staff training and offer presentations influence spending behavior.
How to Calculate RevPAC (Practical Steps)
You can quickly calculate RevPAC on a daily basis or for specific periods. (SiteMinder)
- 📊 Collect all revenue – rooms, F&B, spa, etc.
- 👥 Get the number of guests – total number of customers from PMS
- 🧮 Apply the formula:
- RevPAC = Total Revenue ÷ Number of Guests
Enabling daily tracking via a simple Excel sheet or dashboard allows you to monitor revenue growth trends in real time.
What is a Good Benchmark for RevPAC?
There is no single target for RevPAC; it varies by market, product, and segment. However, general ranges are as follows:
- 🏨 Basic hotel: ~100 USD
- 🍹 Mid-range + F&B: ~$150
- 🏝️ Resort & Premium: ~$400+
These figures are industry averages; setting continuous improvement targets within your own segment is more critical.
What Can You Do with RevPAC?
RevPAC is not just a number—it can become a strategic decision-making tool.
🎯 Target Audience Analysis
Identify the segments that generate the most revenue and develop offers tailored to them.
📦 Package & Upsell Strategies
Increase revenue per guest with room + F&B or spa packages.
📈 Performance Management
Scale your team's daily performance with RevPAC.
🏨 Portfolio Comparison
Compare the RevPAC performance of different properties to spread best practices.
RevPAC vs Other Metrics
What Does the KPI Measure? Focus
RevPAR Revenue per available room Room performance
RevPAC Total revenue per guest Guest value
RevPASH F&B revenue per capacity Seat/restaurant-focused
RevPAC creates a complete revenue picture by making non-room revenue areas visible.
Conclusion: Put RevPAC at the Heart of Your Revenue Strategy
RevPAC is not just a metric; it is the center of revenue management, cross-selling, channel strategy, and operational decision-making processes. By focusing on modern hotel performance, you can increase your guest-based revenue generation capacity.