As an industry, we are often accused of being ‘acronym heavy’, something I didn’t necessarily agree with until one of our wonderful partners asked for some help pulling together a ‘cheat sheet’ for one of their new revenue professionals. As you can see, we got to just over 60 very quickly!

There may be many more to add but if you have someone new to revenue in your team, I hope this helps.

  1. ADR - Average Daily Rate: A metric that calculates the average rate a hotel charges for its rooms sold in a specific time period. This is calculated by dividing the nett revenue by the number of ACTUAL rooms sold. Eg. I have 100 rooms in my hotel and I have sold 60 rooms. My revenue is £6372.50. My ADR is therefore £6372.50/60 = £106.21
  2. ARR - Average Room Rate: Another way of saying ADR.
  3. RevPAR - Revenue Per Available Room: A performance metric that takes into account both the occupancy rate and the revenue to measure a hotel's overall revenue generation. This is calculated by dividing the nett revenue by the number of rooms available to sell. This should not include Out of Service rooms as these are technically not available to sell and therefore should not be included. Eg. I have 100 rooms in my hotel and I have sold 60 rooms. My revenue is £6372.50. But 5 of my rooms are Out of Service and cannot be sold. The calculation for RevPar is therefore £6372.50/95 = £67.07

Read the full article at Right Revenue