Which metric measures revenue generated per available room in a hotel?

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

Which metric measures revenue generated per available room in a hotel?

Explanation:
RevPAR measures the amount of revenue generated for each available room, combining occupancy and rate into a single figure. It shows how effectively a hotel is converting room supply into revenue by taking total room revenue and dividing it by the number of available rooms (or by multiplying the average daily rate by the occupancy rate). This makes it the best metric for comparing performance across properties or time periods regardless of size, since it directly reflects revenue per room that could have been sold. ROI is about profitability relative to investment, not per room; a résumé and public relations are not metrics for hotel revenue.

RevPAR measures the amount of revenue generated for each available room, combining occupancy and rate into a single figure. It shows how effectively a hotel is converting room supply into revenue by taking total room revenue and dividing it by the number of available rooms (or by multiplying the average daily rate by the occupancy rate). This makes it the best metric for comparing performance across properties or time periods regardless of size, since it directly reflects revenue per room that could have been sold. ROI is about profitability relative to investment, not per room; a résumé and public relations are not metrics for hotel revenue.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy