What is RevPAC?
Revenue per Available Customer, or RevPAC, tells you how much revenue each guest truly generates during their stay. Add every dollar that comes through the door, including rooms, restaurant covers, spa treatments, parking and even late-checkout fees, then divide the total by the number of guests in the same period.
RevPAC = Total hotel revenue ÷ Number of guests
Imagine 200 guests staying over a busy weekend and spending $60,000 across all outlets. Your RevPAC for that period is $300. Compare that figure against previous weekends or sister properties and you can spot whether dining upgrades, bundled packages or loyalty perks are lifting overall guest value, not just room rate.
Managers often rely on RevPAR, ADR or occupancy to judge performance. Those metrics focus on beds and rates, but they miss everything happening after check-in. RevPAC plugs that gap by revealing the full earning power of each guest, guiding better decisions on upsells, staffing and marketing spend.
In this blog, we will unpack why RevPAC matters, how to calculate it quickly from your systems and the tactics you can use today to grow guest-level revenue.
Why is RevPAC important for hotels?
RevPAC is important because, when the number climbs, you know diners are ordering dessert, spa clients are adding treatments, and families are happy to pay for late checkout, growing your revenue through more than just room bookings. Falling figures signal gaps you can fix before they grow into revenue leaks. A healthy RevPAC shows that guests are engaging with more than just your beds.
RevPAC also shines when you manage multiple properties. Compare a city-centre site with a seaside resort and you will see which upsells resonate with different traveller types. Because the metric captures every dollar a guest spends, you avoid basing strategy on room rates alone.
Think of a midweek lull. Occupancy might sit at 70% yet RevPAC lags behind last year. That prompt lets revenue and F&B teams design a bundled dinner package and promote it through pre-arrival emails. By Friday, spend per guest rebounds without chasing deep discounts.
Key takeaways
- RevPAC highlights spend patterns beyond rooms, helping you plug revenue gaps fast.
- Cross-property comparisons reveal which upsells work for each audience segment.
- Acting on low RevPAC days keeps overall revenue high without heavy price cuts.
Maximise RevPAC with advanced revenue intelligence
Transform RevPAC from a metric into a growth engine. Dynamic Revenue Plus delivers sophisticated revenue strategies, automated upsell optimization, and predictive insights that boost guest spending.
What factors impact RevPAC?
Several moving parts push your Revenue per Available Customer up or drag it down, including room mix, pricing, ancillary spend, guest stay length, marketing and distribution mix, and operational execution success.
- Room mix and pricing fences. Suites, connecting rooms and high-floor upgrades raise average rate but only if guests see the value. Clear add-on options in your booking engine and pre-stay emails nudge people toward pricier categories that fit their needs.
- Ancillary spend. Food and beverage, spa, parking and retail outlets can more than double guest value when promoted at the right moments. Upsell pages during online check-in, QR-code menus and staff incentives all lift capture rates without feeling pushy.
- Guest segment and length of stay. Corporate travellers on a single-night stay behave differently from families on a week-long break. Tailor packages and merchandising to each profile so you maximise spend across the whole visit, not just night one.
- Marketing and distribution mix. Channels that bring price-sensitive deal hunters often show lower ancillary spend. Balance those outlets with direct bookings and loyalty members who historically spend more on site.
- Operational execution. Even the best offers fall flat if the spa is understaffed or the restaurant runs out of specials. Align staffing and inventory with expected take-up so experiences meet expectations and revenue sticks.
Key takeaways
- RevPAC rises when you optimise room upsells, ancillary offers and targeted packages.
- Different guest segments respond to different promotions, so match upsells to traveller intent and stay length.
- Smooth operations and the right distribution mix ensure guests can and will spend across multiple outlets.
Optimise your pricing and maximise room revenue
SiteMinder connects with leading revenue management systems to automatically update your optimised rates across all distribution channels in real-time, maximizing the yield of every room through intelligent pricing.
How is RevPAC calculated in a hotel setting?
You already know the headline formula: total hotel revenue divided by the number of guests. Turning that theory into a daily metric takes three short steps.
1. Gather the right data
Pull gross revenue from your property-management system, point-of-sale terminals and any stand-alone outlets such as the spa or golf course. Make sure the feed covers the same date range across all sources.
2. Count unique guests
Export head-count data from the PMS for the matching period. Use “adults plus children” to avoid missing family spend.
3. Run the calculation
Enter both figures into your revenue dashboard or a simple spreadsheet:
RevPAC = Total revenue ÷ Guest count
Update the sheet each morning and you will see guest value rise or fall in near real time.
What is a good RevPAC benchmark for hotels?
There is no single magic number. Your ideal RevPAC shifts with the breadth of outlets you run, how premium the experience feels and the spending habits of each segment.
- A limited-service property that offers little more than rooms and a grab-and-go breakfast might see roughly $100 per guest.
- A mid-scale hotel with a restaurant, bar and small spa often lands closer to $150.
- At the top end, boutique resorts with multiple dining venues, wellness programmes and curated activities can nudge $400 or more.
Treat these ranges as rough guide rails, track your own baseline for a month and challenge each department to lift it by 10% each quarter.
Key takeaways
- RevPAC climbs as you add amenities, premium touches and high-spending segments.
- Limited-service hotels may target around $100, while luxury resorts can exceed $400.
- Your own baseline is the true benchmark; focus on steady, incremental growth.
How can hotel owners leverage RevPAC?
Key facts
Hotel owners can leverage RevPAC as a live gauge of guest value, using it to see which segments spend freely and which outlets need a push. Tracking the metric daily, then slicing it by channel, traveller type and day of week, lets you tune offers, staffing and cross-promotions on the fly. When RevPAC climbs, you know every department is capturing more of each guest’s wallet.
Spot low-spend segments and tailor offers
Filter your dashboard by booking source or traveller type. If OTA guests spend less in the restaurant, send them a pre-arrival email offering a paid room upgrade bundled with a dinner credit. You lift ancillary spend and fill empty tables in one stroke.
Bundle experiences, not just beds
Room-only rates leave money on the table. Create stay-and-sip packages that pair a premium room with a tasting flight, or a mid-week spa stay that includes a thirty-minute massage. Guests enjoy convenience, and you push RevPAC higher with minimal extra cost.
Share the metric across departments
Display today’s RevPAC on screens in back-of-house areas. When front desk, F&B and housekeeping watch the same score rise, they naturally suggest add-ons and upsells that fit the guest journey.
Reward teams for incremental gains
Set a monthly RevPAC target and celebrate when you beat it. Small bonuses or recognition programmes tied to guest spend keep everyone focused on value rather than volume.
Compare properties inside your platform
If you manage multiple hotels, use a multi-property dashboard such as SiteMinder Insights to compare RevPAC side by side. A city-centre property might excel at upgrades, while a resort wins on F&B. Swap playbooks and raise the floor across the portfolio.
Key takeaways
- Use RevPAC as a live signal to adjust offers, staffing and promotions in real time.
- Segment-level analysis uncovers low-spend guests, letting you craft targeted upsells.
- Visible dashboards and small incentives turn every team member into a revenue partner.
Frequently Asked Questions on RevPAC
How does RevPAC differ from RevPAR?
RevPAR (Revenue per Available Room) divides room revenue by the number of sellable rooms, so it stops at the door of each guest room.
RevPAC divides all revenue by the number of guests, capturing on-property spend in restaurants, bars, spas and retail outlets.
Meanwhile, RevPAM is about the revenue per available metre (for rooms). It’s more about how well your space is used, rather than the actual number of rooms and ancillary spend.
Lastly, you’ve got RevPASH. That’s revenue per available seat hour, referring to how much revenue your bar, restaurant, or other dining facilities generate.
In short, RevPAR tells you how your rooms perform; RevPAC shows how much value each guest creates across the whole property. RevPAM considers room size, and RevPASH digs into individual seats at your food and beverage facilities. They all tell a different part of the same overall revenue story.
What are the benefits of tracking RevPAC for hotels?
RevPAC highlights total guest value, exposing hidden revenue gaps that room-only metrics miss. It encourages collaboration between departments because everyone sees how food and beverage, spa and front-desk upsells combine to lift the same score.
Over time, it provides a clearer picture of which promotions work, which guest segments spend more and whether service upgrades pay off in real cash, not just satisfaction scores.
What operational decisions can be influenced by RevPAC data?
Daily RevPAC trends guide staffing levels, upsell timing and marketing spend. A dip on midweek stays might prompt a dinner-and-drink bundle to boost restaurant revenue. A rising RevPAC after a spa-inclusive package signals that the offer could run longer.
At the portfolio level, comparing RevPAC between properties helps allocate capital to outlets that deliver the greatest guest value.
