Recruiter's Glossary

Examples: Rate Parity • Design Hotel • Booking Engine

RevPAR

Term from Boutique Hotels industry explained for recruiters

RevPAR (Revenue Per Available Room) is a key measurement used in the hotel industry to evaluate how well a property is performing financially. It's calculated by multiplying a hotel's average daily room rate by its occupancy rate. Think of it as a way to understand how much money a hotel is making from its rooms, considering both price and how often rooms are filled. Hotel managers and owners use RevPAR to compare their performance against competitors and make decisions about pricing and marketing strategies. It's similar to other hotel metrics like ADR (Average Daily Rate) or occupancy rate, but RevPAR combines both to give a more complete picture of the hotel's success.

Examples in Resumes

Increased RevPAR by 25% through strategic pricing and marketing initiatives

Managed daily operations resulting in RevPAR growth from $85 to $120

Led team of 20 staff members to achieve highest RevPAR in the hotel chain

Typical job title: "Hotel Revenue Managers"

Also try searching for:

Revenue Manager Hotel Manager General Manager Operations Manager Revenue Analyst Hospitality Manager Hotel Director

Where to Find Hotel Revenue Managers

Professional Organizations

Online Communities

Job Resources

Example Interview Questions

Senior Level Questions

Q: How would you develop a strategy to improve RevPAR during low season?

Expected Answer: A senior manager should discuss multiple approaches including targeted marketing campaigns, dynamic pricing strategies, package deals, and identifying new market segments. They should also mention analyzing historical data and competitive set information.

Q: How do you balance RevPAR growth with guest satisfaction?

Expected Answer: The answer should cover maintaining service quality while optimizing rates, understanding the relationship between price and guest expectations, and using guest feedback to make pricing decisions.

Mid Level Questions

Q: What factors do you consider when analyzing RevPAR performance?

Expected Answer: Should mention seasonal trends, local events, competitor pricing, market demand, guest demographics, and operational costs. Should be able to explain how these factors influence RevPAR.

Q: Explain how you would use RevPAR data to make pricing decisions.

Expected Answer: Should discuss comparing RevPAR against competitors, analyzing trends, considering market conditions, and adjusting room rates accordingly to maximize revenue.

Junior Level Questions

Q: Can you explain how RevPAR is calculated?

Expected Answer: Should be able to explain that RevPAR equals the average daily room rate multiplied by the occupancy rate, and provide a simple example of the calculation.

Q: Why is RevPAR an important metric in hotel management?

Expected Answer: Should explain that RevPAR helps measure hotel performance by combining both room rate and occupancy, making it useful for comparing different properties and time periods.