RevPAR allows hotel entities to measure on a like-for-like basis the performance of one hotel relative to its competitive set. With this metric, hotels can assess if they are achieving their fair share and just how successful the hotel has been in optimising the use of available inventory. When it comes to TrevPAR, however, the issue is the definition of total revenue, explains Puneet Mahindroo, Director, Revenue Management - Asia Pacific, Four Seasons Hotels and Resorts. The question then is: should hould hotels consider only resident guest related spend to calculate it or should they also be considering the overall gross revenue generated by the property? Each approach has implications. For instance a hotel with the same room inventory may have a larger banquet space and, as a consequence, greater potential for revenue generation. So when you divide the total revenue for two hotels, it may not be a fair, like-for-like comparison. “I think the industry is yet to come to a consensus on this,” says Mahindroo, who adds that another complication is that unlike RevPAR, there is general hesitation in disclosing total revenue data in several parts of the world. According to Kristie Goshow, Vice President, Marketing at Sabre Hospitality Solutions, larger brands have certainly embraced the conceptand this is evident through their marked interest in optimising inventory sets beyond the bedroom such as food and beverage, meeting space and other public spaces. “Small groups and independents will slowly follow over the course of the next 24 months. We expect the level of adoption to vary by region,” she says. Get the full story at EyeForTravel