What Is RevPAR? How Hotels Can Improve Revenue with Snapfix

Full rooms don’t always mean full revenue.

In today’s data-driven world, measuring success goes far beyond full rooms or busy lobbies. Hotels and accommodation providers are increasingly focused on metrics that offer a deeper understanding of performance, and Revenue Per Available Room (RevPAR) remains one of the most critical among them.

For frontline teams, general managers, and revenue professionals alike, understanding and optimizing RevPAR is a key step toward creating continuous profitability. But while RevPAR is often discussed in boardrooms and revenue meetings, its improvement relies heavily on day-to-day operations; from housekeeping to maintenance and guest experience delivery.

This guide is designed to help hospitality teams not just understand RevPAR, but also take practical, operational steps to improve it.

What is RevPAR in Hotels?

Revenue Per Available Room (RevPAR) is a core performance metric in the hotel industry. It combines both occupancy and pricing to show how effectively a hotel is generating revenue from its available inventory.

Why is RevPAR Important?

RevPAR is one of the most widely used metrics to assess a hotel’s overall financial performance. Unlike occupancy rate or Average Daily Rate (ADR) alone, RevPAR provides a wider picture of how well you’re monetizing your room inventory.

Here’s why it matters:

• • Benchmarking Performance: RevPAR allows you to compare your revenue efficiency against competitors or internal targets.

• • Revenue Strategy Alignment: It aligns your sales, marketing, and operations under one success metric.

• • Operational Insight: Drops in RevPAR can signal operational issues, not just pricing missteps.

• • Investor Confidence: It’s a metric investors and stakeholders watch closely when evaluating hotel profitability.

RevPAR isn’t just for revenue managers; it should be understood and prioritized across all hotel departments.

How to Calculate RevPAR (With Examples)

There are two common formulas that are used to calculate RevPAR:

1. 1. RevPAR = Total Room Revenue ÷ Number of Available Rooms
2. 2. RevPAR = Average Daily Rate (ADR) × Occupancy Rate

Both lead to the same result and give an indication of the revenue earned for each available room, regardless of whether or not it was sold.

Example: If your hotel has an 80% occupancy rate and an ADR of $110:

0.80 × $110 = $88 RevPAR

This means you're earning $88 for every room you have, whether it was occupied or not.

Why RevPAR Matters to Hotel Profitability

RevPAR helps hoteliers understand:

• • Are we pricing our rooms correctly?

• • Are we maximizing occupancy potential?

• • Are inefficiencies limiting revenue opportunities?

But RevPAR has its limitations:

• • It doesn’t account for costs unlike Gross Operating Profit per Available Room (GOPPAR).
• • It ignores non-room revenue (e.g., food & beverage).
• • A high RevPAR can mask operational problems that reduce guest satisfaction.

The Role of Hotel Operations in RevPAR Performance

RevPAR improvements are often seen as the responsibility of revenue managers. In reality, operational teams play a crucial role:

• • Room Readiness: Delayed turnovers reduce occupancy
• • Maintenance Responsiveness: Unresolved issues hurt guest satisfaction & reviews
• • Task Coordination: Miscommunication leads to downtime
• • Preventive Maintenance: Reduces unexpected outages
• • Housekeeping Accuracy: Ensures guest-ready rooms

Hotels that consistently score high on guest satisfaction often have well-oiled internal systems, not just good front-desk service.

How Snapfix Supports RevPAR Optimization

Snapfix is a tool that hotels can use to manage tasks and maintenance across teams. While it’s not a revenue management system, it contributes to RevPAR by helping teams work more efficiently and keep rooms online.

Examples of how Snapfix support revenue performance:

• • Real-time Task Tracking: Ensures no task is missed or forgotten, reducing delays.
• • Photo-Based Reporting: Speeds up issue identification and resolution.
• • Checklists and Compliance: Helps maintain brand standards and safety protocols.
• • Mobile Accessibility: Teams can update and communicate from anywhere in the hotel.

This is not a replacement for good management, but it can amplify it. When systems are in place to catch problems early, coordinate teams quickly, and track accountability, the hotel’s performance naturally improves.

A Thought Exercise: What’s Your “Invisible” RevPAR Drain?

Ask yourself or your team:

• • How many rooms were delayed last month due to coordination issues?
• • What percentage of maintenance tickets took more than 24 hours to complete?
• • How many guest complaints were related to things the operations team could have fixed?

If you start measuring these metrics, you may uncover operational factors that have been limiting your RevPAR all along without even realizing it.

Final Thoughts

Improving RevPAR is not just the job of revenue managers, it’s a team sport. From the front desk to facilities, every department influences whether a room is available, guest-ready, and worth the price being charged.

Hotels that combine revenue strategy with operational precision are the ones that thrive, not just in terms of occupancy or ADR, but in long-term guest satisfaction and profitability.

Snapfix isn’t just about fixing things; it’s about making teams more capable, more efficient, and ultimately, more impactful in achieving revenue goals.