What term refers to a rate that reflects a hotel's revenue per available room?

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Get ready for the DECA Hospitality and Tourism Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Prepare for your assessment!

Multiple Choice

What term refers to a rate that reflects a hotel's revenue per available room?

Explanation:
RevPAR is the metric that describes revenue earned per available room, capturing both how much a hotel earns from rooms and how many rooms are being used. It can be calculated by dividing total room revenue by the number of available rooms, or by multiplying the average daily rate (ADR) by the occupancy percentage. This makes RevPAR a single-number measure of how effectively a hotel turns its room inventory into revenue, reflecting both price and occupancy. For example, if a hotel has 80 rooms and sells 60 at an average rate of $150, total room revenue is 60 × 150 = $9,000. RevPAR is $9,000 ÷ 80 = $112.50, which is also ADR (150) × occupancy (0.75) = 112.50. This shows the revenue generated per available room, regardless of total occupancy or room count. ROI, on the other hand, is about overall return on investment, not per-room revenue. Résumé is a CV, and a sample is just a generic example.

RevPAR is the metric that describes revenue earned per available room, capturing both how much a hotel earns from rooms and how many rooms are being used. It can be calculated by dividing total room revenue by the number of available rooms, or by multiplying the average daily rate (ADR) by the occupancy percentage. This makes RevPAR a single-number measure of how effectively a hotel turns its room inventory into revenue, reflecting both price and occupancy.

For example, if a hotel has 80 rooms and sells 60 at an average rate of $150, total room revenue is 60 × 150 = $9,000. RevPAR is $9,000 ÷ 80 = $112.50, which is also ADR (150) × occupancy (0.75) = 112.50. This shows the revenue generated per available room, regardless of total occupancy or room count.

ROI, on the other hand, is about overall return on investment, not per-room revenue. Résumé is a CV, and a sample is just a generic example.

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