What is RevPAR and how does it compare to GOPPAR?

As you can expect, one of the goals for GuestComment is to help a hotel to improve its online reputation, thus increasing the overall success of the property.

But, how do you measure that success?

Well, there are two main formulas that hotels use to measure performance. RevPAR and GOPPAR. Unless you’re knee deep in the hospitality industry, you likely have no idea what GOPPAR and RevPAR mean, so here’s a really brief primer.

What is RevPAR?

RevPAR stands for “revenue per available room” and is basically a calculation of a hotel’s average daily room rate (ADR if you’re into collecting acronyms) by its occupancy rate. RevPAR is pretty simple to calculate and is a great metric for comparing similar hotels in the same category, or for comparing different periods of time (this Labor day weekend, versus last Labor day weekend).

However, one of the common complaints about RevPAR is that is only really takes into account revenue–not a hotel’s profit–and it only looks at revenue from a hotel’s rooms–ignoring other revenue, say from a spa or golf course.

What is GOPPAR?

Enter GOPPAR–or gross operating profit per available room.

Advocates of GOPPAR say that it provides a more accurate measurement of a hotel’s overall success as it not only looks at revenues generated, but also takes into account operational costs and allows for the calculation of revenue from non-room sources. To calculate GOPPAR you take the gross operating profit (another acronym for your collection: GOP) and divide it by available rooms.

So which do you like to use? RevPAR or GOPPAR? Or perhaps some other formula? Whatever formula you use to calculate the success of your hotel, GuestComment can help increase that number by connecting you to your guests in real time, collecting their feedback, and improving your hotel’s reputation.

We have an acronym for that too: AWESOME! (yeah, doesn’t fit at all, but that doesn’t stop it from being true!)