Net Revenue Per Available Room (NRevPAR)
NRevPAR is a distribution-adjusted revenue metric that subtracts third-party OTA commissions, transaction gateway fees, and channel distribution costs from room revenue before dividing by total available rooms.
Why It Matters for Independent Operators
NRevPAR reveals the true commercial efficiency of distribution channels. Two hotels with identical ₹4,500 RevPAR will experience vastly different bottom lines if one relies heavily on high-commission intermediaries while the other drives direct bookings.
Practical Scenario & Calculation
[Illustrative Scenario] A resort achieves ₹4,000 RevPAR across 1,000 monthly room nights (₹40,00,000 gross). If OTA commissions and channel fees consume ₹7,20,000, net revenue is ₹32,80,000. NRevPAR = ₹32,80,000 / 1,000 = ₹3,280.
How Operators Can Apply This Concept
Evaluate revenue managers on NRevPAR rather than gross RevPAR to ensure channel strategies reward profitable net cash flow rather than discounted volume.
Common Misunderstanding to Avoid
Focusing exclusively on RevPAR incentivises discounting through high-cost OTAs, boosting gross numbers while eroding net margins and operating cash flow.
OTA Commission Loss Calculator
Estimate OTA fees from inventory, rates, occupancy and entered channel shares. Optional settlement deductions are inputs, not statutory tax advice.
Hotel Revenue Management
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