No need to obsess over RevPAR or lose sleep over ADR – there are much more important metrics out there for revenue managers. Discover what you should be tracking instead.

Revenue management is not a walk in the park. Demand forecasting, rate negotiations, inventory management – stay with us – competitor analysis and pricing strategy can leave even the most seasoned hotelier feeling a little fatigued.

Luckily for everyone, technology simplified much of it. But what should your property be tracking to see big gains? The latest guide by Mews, the industry-leading hospitality cloud, explores the new success metrics for revenue managers.

Get your copy here.

Let’s start with a hospitality classic. RevPAR has long been the thinking man’s ADR. But just like ADR, RevPAR also has its limitations. It’s a one-dimensional metric in a three-dimensional world.

It gives you data from only one income source and is based on an occupancy rate that’s also an incomplete representation. By limiting your revenue tracking to rooms, you only focus on one part of the guest journey: the room reservation.

RevPAM (revenue per available square meter) solves this problem. It’s a more flexible metric that allows you to analyze rooms only (which rooms have the best utilization to revenue ratio) or to track your entire hotel space.

It’s a more holistic approach that captures more touchpoints like upselling – pre-stay and at your property – and F&B. It also encourages your team to think about more ways to diversify and maximize revenue. RevPAM can be boosted not only through room rates but through add-ons and experiences – and it will shine a light on underperforming areas, too.

Want to see the rest of the metrics? Grab your copy of the modern revenue management cheat sheet for optimizing operations and maximizing profitability: The New Era of Hospitality Metrics for Revenue Managers.