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Hotel Revenue Benchmarking and Total Revenue Essentials
A practical path through hotel benchmarking, occupancy and rate indices, RevPAR, total revenue, occupied-room economics, segmentation, pricing fences, and inventory controls.
This collection contains 19 connected articles. Foundational concepts appear first so readers can build context before moving into operational and advanced topics.
What Is a Hotel STR Report?
A hotel STR report is a benchmarking report that compares a participating hotel’s occupancy, average daily rate, and revenue per available room with an approved competitive set and market reference for defined periods.
Revenue Management · BenchmarkingWhat Is Market Penetration Index (MPI)?
Market Penetration Index (MPI), often called occupancy index, compares a hotel’s occupancy percentage with the occupancy percentage of its competitive set for the same period.
Revenue Management · BenchmarkingWhat Is Average Rate Index (ARI)?
Average Rate Index (ARI) compares a hotel’s average daily rate with the average daily rate of its competitive set for the same period.
Revenue Management · BenchmarkingWhat Is Revenue Generation Index (RGI)?
Revenue Generation Index (RGI), often called RevPAR index, compares a hotel’s revenue per available room with the RevPAR of its competitive set for the same period.
Revenue Management · Hotel Performance MetricsWhat Is Hotel Occupancy?
Hotel occupancy is the percentage of available rooms that are occupied or sold during a defined period. A common formula is occupied rooms divided by available rooms, multiplied by 100.
Revenue Management · Hotel Performance MetricsWhat Is ADR?
Average daily rate (ADR) is the average rooms revenue earned for each revenue-generating room sold during a specific period. It is generally calculated by dividing rooms revenue by rooms sold.
Revenue Management · Hotel Performance MetricsWhat Is RevPAR?
Revenue per available room (RevPAR) is a hotel performance metric that shows rooms revenue generated for each available room, whether the room was sold or not. It can be calculated as rooms revenue divided by available rooms, or as ADR multiplied by occupancy expressed as a decimal.
Revenue Management · Hotel Performance MetricsWhat Is TRevPAR?
Total revenue per available room (TRevPAR) measures total hotel operating revenue for a period divided by available guestrooms for the same period.
Revenue Management · Hotel Performance MetricsWhat Is RevPOR?
Revenue per occupied room (RevPOR) measures defined hotel revenue generated for each occupied room during a period.
Finance & Accounting · Operating MetricsWhat Is Cost per Occupied Room (CPOR)?
Cost per occupied room (CPOR) measures a defined set of operating costs divided by occupied room nights for the same period.
Revenue Management · Revenue StrategyWhat Is Total Revenue Management?
Total revenue management applies revenue-management principles across multiple hotel revenue streams, capacities, customer segments, and time-sensitive resources rather than focusing only on guestrooms.
Revenue Management · Market SegmentationWhat Is Hotel Market Segmentation?
Hotel market segmentation is the practice of grouping demand into meaningful categories based on booking behavior, trip purpose, rate arrangement, channel, customer relationship, or service need.
Revenue Management · Pricing ControlsWhat Is a Hotel Rate Fence?
A hotel rate fence is a clear condition that separates one rate offer from another by eligibility, booking behavior, inclusions, restrictions, or value received.
Revenue Management · Inventory ControlsWhat Are Hotel Length-of-Stay Controls?
Hotel length-of-stay controls are inventory rules that shape which arrival-and-departure combinations may be booked for selected dates, room types, rates, or channels.
Revenue Management · Inventory ControlsWhat Is a Closed-to-Arrival Restriction?
A closed-to-arrival (CTA) restriction prevents new reservations from arriving on a selected date for the controlled inventory, while reservations staying through that date may remain bookable depending on system configuration.
Revenue Management · Need DatesWhat Are Hotel Need Dates?
Hotel need dates are future dates when a property expects weaker demand or more unsold inventory and wants appropriate additional business.
Revenue Management · Compression NightsWhat Are Compression Nights in a Hotel Market?
Compression nights are dates when unusually strong market demand constrains available room supply across a hotel market, although individual properties may experience different outcomes.
Revenue Management · Demand CalendarWhat Is a Hotel Demand Calendar?
A hotel demand calendar is a planning tool that organizes expected demand conditions, events, need dates, compression dates, group activity, seasonality, and other market signals across future dates.
Revenue Management · Forecast AccuracyWhat Is Hotel Forecast Accuracy?
Hotel forecast accuracy is the degree to which a defined forecast aligns with actual hotel results for the same period, horizon, segment, and measure.