Module 1 of 6
Hotel Revenue Metrics (RevPAR, ADR, Occupancy)
Calculating room yield, dynamic pricing, and channel management.
RevPAR & ADR Fundamentals
RevPAR (Revenue Per Available Room) = ADR x Occupancy Rate. Balancing room rates with occupancy is key to maximizing total property yield across peak and shoulder seasons.
“Our RevPAR increased 12% this quarter due to dynamic weekend pricing adjustments.”
Reporting revenue performance
OTA vs Direct Booking Channel Mix
Manage commission costs (15%-25% for OTAs like Booking.com/Expedia) by driving direct website bookings with exclusive perks like free breakfast or late check-out.
“Increasing our direct booking ratio by 15% saved $14,000 in OTA commission fees.”
Evaluating channel profitability
Beyond RevPAR: GOPPAR & Booking Pace
RevPAR alone doesn't show profitability — GOPPAR (Gross Operating Profit Per Available Room) divides total operating profit by available rooms, capturing the cost side RevPAR ignores. Track booking pace — how fast reservations are being picked up for a future date compared to the same point last year — to catch a slow-selling date early enough to still adjust pricing or promotion.
“Our GOPPAR outperformed budget despite flat RevPAR, thanks to tighter operating costs.”
Reporting profitability beyond RevPAR
“Booking pace for the festival weekend is 20% behind last year — let's open a promotional rate.”
Acting on a slow pace signal
Rate Strategy: MLOS & Fenced Rates
Two tools protect revenue on high-demand dates: a Minimum Length of Stay (MLOS) restriction requires guests to book multiple nights around an event or holiday, so a one-night booking can't block a more lucrative multi-night stay; a fenced rate is a discounted rate that comes with a real restriction — usually non-refundable and prepaid — so price-sensitive guests get a lower price without undercutting flexible, full-rate bookings.
“We're applying a 2-night MLOS around the festival weekend to protect high-demand inventory.”
Explaining an MLOS restriction
“Our non-refundable fenced rate is 15% below the flexible rate, prepaid at booking.”
Describing a fenced rate offer
Quick Shift Check
How is hotel RevPAR (Revenue Per Available Room) calculated?