What is Revenue per Occupied Room (RevPOR)?
Revenue per Occupied Room (RevPOR) is a metric that measures the amount of revenue generated by a hotel for every room occupied. It is similar to RevPAR, which stands for Revenue per Available Room.
RevPOR is calculated by dividing total revenue by total occupied rooms. For example, if a hotel has 100 rooms and generates $1 million in revenue, its revenue per occupied room would be $10,000 ($1 million divided by 100).
If you are using this metric to analyze your performance on an annual basis, you will want to divide your total revenue by the total number of rooms you had available that year. This will give you an idea of how much money each room generated for your business during the course of the year.
RevPOR Versus RevPAR
Revenue per Occupied Room (RevPOR) is the amount of money a hotel generates for each room it has occupied. It's a good way to measure the success of a hotel's marketing efforts, as well as its ability to attract guests.
On the other hand, Revenue per Available Room (RevPAR) measures how much money a hotel earns per available room in its inventory. This can be a better indicator than RevPOR when comparing hotels with different levels of occupancy.
Why Is RevPOR Important?
RevPOR is the main metric for hotel chains to measure how many guests are staying in a given room and how much they're spending. This metric is important because it helps a company determine how well it's doing from a financial standpoint and how much money it can expect to make from each guest.
It's important for hotels to be able to accurately calculate their RevPOR because it determines whether or not the hotel is making enough money, whether or not they should increase prices, and if there are any areas for improvement.
How Do I Raise My Hotel’s RevPOR?
We all know that RevPOR is important. But how do we actually go about raising it?
The first step is to determine what your current RevPOR is. Then, figure out where you can make improvements. If you're not sure where to start, try looking at these areas:
Room rates: Have you raised them recently? Are there ways to increase demand for the rooms by offering special deals or discounts?
Occupancy rate: Do people know about your hotel's amenities and location? Can you advertise better?
Conference space availability: Are there conferences coming up that would be interested in using your conference center? If so, make sure they know about it!
Customer service: Are employees friendly and helpful? Do they have a good attitude? If not, make sure they get some training!
You want to improve on all four of these things! It might take some time, but with hard work and dedication, you will get there.