Total Revenue Per Available Room (TRevPAR)
Total Revenue Per Available Room (TRevPAR) calculates the complete revenue generated by a property across all departments (rooms, food & beverage, banquets, events, spa) divided by total available room nights.
Why It Matters for Independent Operators
Full-service hotels and wedding venues derive a substantial portion of earnings from non-room departments. TRevPAR captures total commercial asset productivity better than room-only RevPAR.
Practical Scenario & Calculation
[Illustrative Scenario] A 60-room heritage resort generates ₹72,00,000 across a 30-day month (1,800 room nights), comprising ₹42,00,000 in room tariffs, ₹22,00,000 in dining, and ₹8,00,000 in spa and events. TRevPAR = ₹72,00,000 / 1,800 = ₹4,000, whereas room RevPAR is only ₹2,333.
How Operators Can Apply This Concept
Use TRevPAR to assess total space yield during peak wedding and festival seasons when room rates alone do not reflect total event spend.
Common Misunderstanding to Avoid
TRevPAR does not account for department-specific operating expenses. High banquet revenue with thin catering margins will inflate TRevPAR without delivering proportional GOPPAR.
Hotel Profit Margin Calculator
Calculate room operating contribution, ancillary contribution and entered-overhead surplus. This simplified model is not audited net profit or a full accounting statement.