The relationship between occ adr revpar

The relationship among occ, adr and RevPAR is: Revpar (income per saleable house) =? Occ (occupancy rate) x? Average house price. In the hotel industry, OTA, ADR, OCC and RevPAR are all important indicators to measure a hotel.

RevPAR is the only indicator to measure the operating income level of all hotels, because it considers both OCC and ADR of hotels. If the hotel wants to improve RevPAR, it will increase the hotel's income through occupancy rate or average price.

OOC= number of rooms actually sold/number of rooms available for sale. When the relevant information of ADR is not provided in the hotel census report or annual report, the quotation can be used as a reference to calculate the approximate ADR (average house price).

Exponential function of RevPAR

RevPAR is a widely used measure in the international hotel industry, which reflects the room income generated by each room, so it can measure the success of hotel room inventory management.

The manager's goal is to maximize RevPar through the improvement of room occupancy rate and average house price, because room income really accounts for a large proportion of the total hotel operating income.

Generally speaking, 50%-65% of the total revenue of a three-star hotel providing full-service comes from rooms. In budget hotels or long-stay hotels with limited ancillary services (mainly catering services), up to 90% of the income comes from rooms.