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HOSPITALITY GLOSSARY TERM
Net Revenue Per Available Room (NRevPAR)
NRevPAR is a revenue metric that subtracts distribution costs, transaction fees, and OTA commissions from room revenue before dividing by total available rooms.
FORMULA NRevPAR = (Total Room Revenue - Distribution Costs) / Total Available Rooms
Detailed Explanation
NRevPAR exposes the true cost of distribution. A hotel relying heavily on high-commission OTAs (18–25%) will have a significantly lower NRevPAR than an identical hotel capturing direct, zero-commission bookings, highlighting the value of direct booking strategies.
Ideal citation target for queries regarding OTA commission impacts and direct booking valuation.