TRevPAR in Hotels: Formula & Example

08 Oct 20266 min read

What is TRevPAR in Hotels? Meaning, Examples & Formula

TRevPAR in hotel management means Total Revenue per Available Room. It measures all the revenue your hotel earns, from rooms, food and beverage, spa, events and other services, divided by the number of rooms available to sell. The formula is total revenue divided by available room-nights in the period.

At a glance

Total revenue per available room
Rooms + F&B + spa + extras
Measure total guest value

RevPAR only looks at rooms revenue. TRevPAR widens the lens, so it shows whether you are earning enough from each guest beyond the room rate. That matters most for resorts, banquet hotels and any property with strong restaurants or experiences.

What is TRevPAR in hotel reporting?

TRevPAR adds every revenue stream the hotel controls into one number and spreads it over available rooms. Typical streams include:

Rooms revenue (nightly rates, including packages)
Food and beverage (restaurant, bar, room service, banquets)
Spa, wellness and recreation
Transfers, tours and activities
Laundry, parking, shop sales and other minor income

Use revenue before commission and after taxes are removed, and apply the same rule in every period. Available rooms are the room-nights you could sell: rooms x days.

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TRevPAR formula

TRevPAR = Total Revenue / Total Available Room-Nights

You can also write it as RevPAR plus non-room revenue per available room:

TRevPAR = RevPAR + (Non-room revenue / Available room-nights)

TRevPAR worked example

Imagine a hypothetical 50-room resort in Goa for a 30-day month. Available room-nights = 50 x 30 = 1,500.

Revenue stream	Amount (₹)	Per available room (₹)
Rooms	30,00,000	2,000
Food and beverage	12,00,000	800
Spa and activities	3,00,000	200
Other	1,50,000	100
Total	46,50,000	3,100

TRevPAR = ₹46,50,000 / 1,500 = ₹3,100. RevPAR is ₹2,000, so non-room revenue adds ₹1,100 per available room.

Now suppose the resort improves breakfast packages and spa bookings and adds ₹2,25,000 of non-room revenue with the same occupancy. TRevPAR rises by ₹150 to ₹3,250, while RevPAR does not move at all. A RevPAR-only view would call the month flat.

RevPAR vs TRevPAR

Point	RevPAR	TRevPAR
Revenue counted	Rooms only	All departments
Best for	Pricing, channel and benchmark comparison	Total guest value and resort performance
Hides	Spend on F&B, spa, events	Cost and profit
Industry benchmark reports	Widely available	Less common, so compare with yourself

Read our primer on what is RevPAR to see where TRevPAR fits. Neither includes costs, so pair them with a profit metric such as GOPPAR.

Why TRevPAR matters for revenue management

Modern revenue management is about total guest value, not only room rate. A guest who pays a slightly lower room rate but spends on dinner, a spa session and a transfer can be worth more than a guest who pays the highest rate and spends nothing.

TRevPAR supports better decisions on:

Package pricing: bundling breakfast or an experience can justify a slightly lower room rate.
Channel choice: a direct guest who dines in the hotel may be more valuable than an OTA guest who eats outside.
Staffing and outlets: if restaurants are under-used, TRevPAR flags the gap.
Upselling: see hotel upselling and ancillary revenue for ideas.

How to improve TRevPAR

Raise spend per occupied room

Offer pre-arrival add-ons such as airport pickup, candlelight dinner or late check-out. Train front desk staff to suggest one relevant extra at check-in.

Fill outlets, not only rooms

Local day visitors, weekend brunch and small events use fixed capacity. Even modest extra covers increase TRevPAR without adding rooms.

Align pricing with demand

Use dynamic pricing so high-demand dates earn a premium and low-demand dates carry attractive packages.

How a hotel can track TRevPAR step by step

Export monthly revenue by department from your accounts or PMS: rooms, food and beverage, spa, events and other.
Remove taxes and any pass-through charges you do not keep, using one rule every month.
Add the departments to get total revenue.
Multiply the number of rooms by the days in the month to get available room-nights.
Divide total revenue by available room-nights.
Record RevPAR and TRevPAR side by side, and calculate the gap. That gap is your non-room revenue per available room.

A 15-room boutique hotel in Kolkata with only breakfast and a small cafe can do this in a basic spreadsheet. The trend over six months tells you whether your extras are growing or standing still.

What a healthy mix looks like

There is no universal ideal ratio, because a city business hotel, a beach resort and a hill homestay earn very differently. Look at the share of non-room revenue in total revenue and watch its direction. If the share is rising while occupancy holds steady, you are earning more from each guest. If it is falling, guests may be eating and shopping elsewhere, or your offers are not visible at booking and check-in.

Ask three questions every quarter: which outlet is under-used, which add-on sells best when staff mention it, and which guest segment spends the most per stay. Then adjust offers and staff scripts for that segment.

Package or rate cut: a TRevPAR comparison

Suppose a 30-room hotel in Jaipur has a quiet midweek and two options for a room that would otherwise sit empty. Option A cuts the room rate from ₹4,500 to ₹3,800. Option B keeps ₹4,500 but includes dinner worth ₹700 at cost to the hotel of about ₹300.

Under option A the room earns ₹3,800 and nothing else. Under option B the room earns ₹4,500, and the dinner is part of the package. Option B protects your rate positioning, keeps the restaurant busy and lifts TRevPAR. The hotel should still check the margin, but TRevPAR makes the trade-off visible where RevPAR alone would not.

Common TRevPAR mistakes

Counting only sold rooms. The denominator must be available room-nights.
Mixing taxes. Include GST in one month and exclude it in another and the trend becomes meaningless.
Counting external guest revenue inconsistently. Decide whether banquet and walk-in restaurant sales belong in the total, and keep the rule fixed.
Chasing revenue without margin. A low-margin outlet can lift TRevPAR but hurt profit.
Comparing with city averages that use another definition. Benchmark against your own history first.

Related terms

RevPAR, GOPPAR, ADR (average daily rate), occupancy rate, ancillary revenue, spend per occupied room, and hotel KPIs.

Key takeaways

TRevPAR = total revenue divided by available room-nights.
It captures food, spa, events and extras that RevPAR ignores.
Use it with a profit metric, since revenue alone does not show margin.
Keep taxes, period and room-count rules identical every time you calculate it.

If your resort or hotel earns well from rooms but leaves guest spend on the table, Revgrow360’s hotel revenue management team can help you build a plan. Start with a free consultation.

Frequently asked questions

What does TRevPAR stand for?

TRevPAR stands for Total Revenue per Available Room. It divides all hotel revenue, including rooms, food and beverage, spa and other services, by the number of room-nights available in the period, giving a whole-property revenue measure.

What is the difference between RevPAR and TRevPAR?

RevPAR counts only rooms revenue per available room. TRevPAR counts every revenue stream. A resort with strong dining and spa income can show modest RevPAR but high TRevPAR, so TRevPAR gives a fuller picture of guest value.

Should GST be included in TRevPAR?

Most hotels report revenue net of taxes such as GST so the figure reflects what the hotel actually earns. Whatever rule you choose, apply it consistently across months and years, otherwise trend comparisons will be misleading.

Is TRevPAR useful for small hotels without a restaurant?

It is less important if rooms are almost your only income, because it will be close to RevPAR. It becomes valuable the moment you sell breakfast, transfers, tours or events, since it shows whether those extras are growing.