1. What is the RevPAR Index?

The RevPAR (Revenue Per Available Room) Index measures a hotel's revenue performance relative to its competitive set. It indicates the hotel's market share of revenue among comparable properties.

2. How Does the Calculator Work?

The calculator uses the RevPAR Index formula:

Where:

• Hotel RevPAR — Your hotel's revenue per available room ($)
• Competitive Set RevPAR — Average RevPAR of your competitive set ($)

Explanation: A RevPAR Index of 100 means you're achieving exactly the market average. Above 100 indicates outperforming the competition, while below 100 indicates underperformance.

3. Importance of RevPAR Index

Details: The RevPAR Index is a crucial performance metric in the hotel industry that helps property managers and owners understand their competitive position in the market and make informed pricing and marketing decisions.

4. Using the Calculator

Tips: Enter your hotel's RevPAR and the competitive set's average RevPAR in US dollars. Both values must be positive numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is a good RevPAR Index value?
A: A value above 100 indicates you're outperforming your competitors. The higher the index, the better your market performance.

Q2: How often should I calculate my RevPAR Index?
A: It's recommended to calculate it monthly to track performance trends and make timely adjustments to your strategy.

Q3: What factors can affect the RevPAR Index?
A: Pricing strategy, occupancy rates, seasonality, market demand, and competitive positioning all influence your RevPAR Index.

Q4: How is RevPAR different from RevPAR Index?
A: RevPAR measures absolute revenue performance, while RevPAR Index measures relative performance compared to competitors.

Q5: Should I use this for long-term strategic planning?
A: Yes, tracking RevPAR Index over time helps identify trends and informs long-term revenue management strategies.