Beyond RevPAR: What is TRevPAR and How to Optimize It

What Is TRevPAR? The Complete Guide to Total Revenue Per Available Room 

While RevPAR (Revenue Per Available Room) remains the gold standard for measuring a hotel’s room revenue performance, TRevPAR (Total Revenue Per Available Room) provides a more comprehensive view of a property’s financial health.  

What Is TRevPAR? 

TRevPAR measures a hotel’s total revenue per available room, factoring in income from all departments, not just rooms. This includes:  

• Food & beverage (F&B)  

• Meeting & event spaces  

• Spas, golf, and recreational services  

• Parking fees  

• Resort fees & miscellaneous charges 

How Is TRevPAR Calculated? 

The formula for TRevPAR is:  

TRevPAR = Total Revenue / Number of Available Rooms  

Unlike RevPAR, which only considers room revenue, TRevPAR gives a complete picture of a hotel’s profitability.  

Why Is TRevPAR Important? 

1. Reveals Hidden Revenue Opportunities

Hotels with strong F&B or ancillary services may have a higher TRevPAR than RevPAR, highlighting untapped revenue streams. If competitors outperform you in TRevPAR, it may indicate opportunities to adjust pricing (e.g., parking fees, spa services) or boost underperforming departments.  

2. Helps Compare Performance Against Competitors

A hotel with high RevPAR but low TRevPAR might be missing out on ancillary revenue. By benchmarking against competitors, you can identify gaps and optimize pricing strategies across all departments.  

3. Provides Deeper Insights Into Revenue Trends

TRevPAR helps explain why revenue fluctuates, whether due to group bookings, events, or ancillary spending. This allows for smarter forecasting and strategy adjustments.  

TRevPAR vs. RevPAR: Key Differences 

Example Scenario: 

• Hotel A: High RevPAR (strong room sales) but low TRevPAR (weak F&B).  

• Hotel B: Moderate RevPAR but high TRevPAR (due to spa, events, and parking revenue). 

In this case, Hotel B may be more profitable overall, even if its room revenue is lower.  

How to Improve Your TRevPAR? 

• Upsell ancillary services (spa packages, premium parking, dining credits).  

• Optimize pricing for meeting spaces and F&B.  

• Benchmark against competitors to identify revenue gaps.  

• Track trends to adjust marketing toward high-spending guest segments. 

FPG is the world leader in driving incremental revenue at over 2,500+ hotels in over 100 countries. Every interaction with a guest is an opportunity to increase revenue. Mastering the art of upselling hotel rooms (and extras) can transform TRevPAR and turn an average stay into a memorable experience for your guests. Whether you're a front desk agent, a hotel manager, or part of the reservations team, you can learn effective strategies, scripts, and psychological triggers to help you upsell with confidence—without ever sounding pushy. Find out how to Upsell Hotel Rooms: 5 Proven Strategies That Work.

Final Thoughts 

While RevPAR tracks room performance, TRevPAR gives a complete financial snapshot of your hotel. By monitoring and optimizing TRevPAR, you can maximize profitability across all revenue streams—not just rooms.  

Want to boost your hotel’s TRevPAR? Analyze your revenue streams today and identify new growth opportunities with FPG!

If you would like to find out more, you can request a free revenue assessment here.