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.
NB: This is an article from SiteMinder, one of our Expert Partners
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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.
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.
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.
