How to Increase RevPOR at Your Hotel

Hotels have their own unique KPIs that share crossover with restaurants.

Randall Scott White

8/18/20233 min read

Increase Your Hotel RevPOR With Innovation and Restaurant Partnerships

RevPOR stands for Revenue per Occupied Room and is a key performance indicator (KPI) used in the hotel industry to assess financial performance. It is calculated by dividing the total revenue generated by the number of rooms actually sold to guests. RevPOR takes into account services and other items a guest may buy, such as spa services and mini-bar sales. It is a useful metric for hotel owners to understand how much revenue they make from the rooms they manage to sell. RevPOR differs from other KPIs such as Revenue per Available Room (RevPAR) and Average Daily Rate (ADR).

RevPAR takes unoccupied rooms into consideration by multiplying the overall occupancy rate by the ADR, while RevPOR only factors in occupied rooms. ADR only considers the average rate charged per room, while RevPOR factors in additional revenue earned from things like room service. Although RevPOR tends to be utilized slightly less than ADR and RevPAR, it is useful for revenue management purposes, because it gives hotels an idea of how much revenue they bring in per guest party and includes revenue generated through things like room service. However, RevPAR often takes a backseat to RevPAR because occupancy rates have a far bigger influence on the bottom line than guest spending on the incidentals.

10 STEP PLAN TO IMPROVE REVPOR AT YOUR HOTEL:

  1. Measure your current RevPOR: Before you can improve your RevPOR, you need to know your current RevPOR. Calculate your RevPOR by dividing your total room revenue by the total number of available rooms.

  2. Segment your target market: Create guest personas to understand who your guests are, why they’re choosing to book with you, and their main reason for travel so you can direct your marketing efforts accordingly.

  3. Optimize your pricing strategy: Use forecasting to predict demand and set prices based on raising hotel room rates as availability drops and demand increases, encouraging travelers to book early

  4. Offer upsells and add-ons: Consider adding in other services such as airport transportation, mini-bar stocked with drinks and snacks for purchase, in-house laundry, paid breakfast, co-working spaces, and guided tours to increase guest spending

  5. Leverage digital marketing: Use digital marketing to promote your hotel and increase overall guest experiences, such as with In-Room restaurant ordering using FULL PLATE 3D MENUS.

  6. Encourage direct bookings: Encourage guests to book directly with your hotel by offering incentives such as discounts, loyalty programs, and exclusive perks.

  7. Optimize your distribution strategy: Ensure that your hotel is listed on internet distribution channels that are relevant to your target market

  8. Monitor and respond to online reviews: Monitor and respond to online reviews to improve your hotel’s reputation and attract more guests. FULL PLATE 3D MENUS makes it easier to gather online reviews than ever before!

  9. Offer personalized experiences: Offer personalized experiences to guests to make their stay more memorable and increase the likelihood of repeat bookings

  10. Continuously review and revise your strategy: Continuously review and revise your strategy to ensure that you are meeting your revenue goals

ABOUT FULL PLATE 3D MENUS:
FULL PLATE 3D MENUS is excited to be a member of the Austin community on a mission to strengthen local economies with IN-ROOM Augmented Reality menus (WebAR, no app downloads required) that connect guests to local restaurants in a convenient, fun way using their smartphones. "The concept is simple", says FULL PLATE's founder Randall White. "When you check into your room, guest experiences are improved with a fun, Hotel-branded visual menu that "brings to life" local restaurant offerings nearby that can be delivered to their room, or key partner restaurants to recommend if hotel guests venture out to eat instead. FULL PLATE 3D MENUS bridges that gap and connects them together while increasing hotel guest memories and overall experience during their stay."

Contact FULL PLATE 3D MENUS to explore how we can help your hotel better connect with local restaurants in your area.