What is TRevPAR (also known as RevPAG) and what it means to you?

What is TRevPAR (also known as RevPAG) and what it means to you

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In the ever-evolving landscape of the hospitality industry, staying ahead of the curve is imperative for hoteliers seeking sustained success. One key metric that has gained prominence in recent times is TRevPAR, also known as Total Revenue per Available Guest. In this article, we will delve into the significance of TRevPAR, its importance for your hotel business, and explore how hotels like yours can seamlessly transition from RevPAR to TRevPAR by leveraging technology for optimal results.

Understanding TRevPAR (also known as RevPAG)

TRevPAR, an acronym for Total Revenue Per Available Room, is a comprehensive metric that goes beyond the traditional Revenue Per Available Room (RevPAR) calculation. RevPAR, while valuable, focuses solely on room revenue generated by a hotel – we have written a whole article on the difference between RevPAR to TRevPAR. TRevPAR, on the other hand, encompasses total revenue generated from all aspects of a guest’s stay, including rooms, food and beverage, spa services, and any other ancillary sources.

TRevPAR is calculated using the following formula:

TRevPAR Formula

The Importance of TRevPAR

  1. Holistic Financial View: TRevPAR provides a holistic financial perspective by considering revenue streams beyond room bookings. This broader view allows hoteliers to make more informed decisions, understanding the complete financial impact of their operations.
  2. Enhanced Profitability: By analysing revenue from various sources, hotels can identify and capitalise on high-margin areas, ultimately boosting overall profitability. TRevPAR enables management to pinpoint which services contribute the most to the bottom line.
  3. Guest Experience Enhancement: TRevPAR encourages a focus on the entire guest experience, as it incorporates revenue generated from ancillary services through upselling. This approach aligns with modern travellers’ expectations, who often seek a seamless and comprehensive hospitality experience.

Implementing TRevPAR Using Technology

  1. Integrated Property Management Systems (PMS): Utilising an advanced PMS allows hotels to consolidate data from various departments into a single platform. This integration streamlines the tracking of revenues from rooms, restaurants, spas, and other amenities, facilitating a more accurate TRevPAR calculation.
  2. Data Analytics Tools: Investing in data analytics tools enables hotels to extract valuable insights from the plethora of information they accumulate. These tools can identify trends, forecast demand, and highlight areas for revenue growth, contributing to an effective TRevPAR strategy.
  3. Customer Relationship Management (CRM) Systems: Leveraging Marketing CRM systems aids in understanding guest preferences and spending patterns. This knowledge can be instrumental in tailoring packages and promotions that maximise revenue across multiple touchpoints.

Transitioning from RevPAR to TRevPAR

  1. Staff Training: Educating staff about the shift from RevPAR to TRevPAR is crucial. Team members need to understand the importance of cross-selling and upselling, encouraging guests to explore additional services during their stay.
  2. Cross-Departmental Collaboration: Fostering collaboration among different hotel departments is essential for a successful TRevPAR transition. Departments must work together to create packages and promotions that offer added value to guests while boosting overall revenue.
  3. Marketing Strategies: Revise marketing strategies to promote the entire guest experience, not just room bookings. Highlighting on-site amenities, exclusive packages, and personalised services can attract guests seeking a comprehensive stay.


In conclusion, TRevPAR (also known as RevPAG) represents a paradigm shift in how hotels measure success. Its holistic approach to revenue calculation offers a more comprehensive understanding of a hotel’s financial performance. By embracing TRevPAR and implementing it through advanced technology solutions like KAI, hotels can enhance profitability, elevate the guest experience, and stay competitive in an ever-changing industry.

Transitioning from RevPAR to TRevPAR requires strategic planning, staff collaboration, and a commitment to embracing the evolving landscape of hospitality. As hoteliers navigate the challenges and opportunities presented by TRevPAR, they position themselves for sustained success in a dynamic market.

About KAI

In the current landscape of the hotel industry, guests seek a distinct and tailor-made experience. The suite of guest experience solutions offered by KAI empowers hotels to redefine their guest experience, boost earnings, optimise marketing efforts and cultivate brand loyalty.

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