Revenue Per Available Room (RevPAR): The Key to Short-Term Rental Success

If you’re in short-term rentals (Airbnb, Vrbo), you need to know RevPAR.
It tells you how much revenue you're making per room, even on vacant nights.

The Formula

Where:

• ADR = Average rental price per night
• Occupancy Rate = % of nights booked

Real-Life Example

Short-Term Rental Performance

RevPAR Calculation

What Does a $105 RevPAR Mean?

• You’re earning $105 per available night (even on vacant nights).
• If RevPAR rises, you’re optimizing pricing well.
• If RevPAR drops, you may need to adjust rates or marketing.

When RevPAR Matters (and When It Doesn’t)

✅ Great for short-term rentals & hotels
✅ Combines pricing & occupancy into one metric
❌ Ignores cleaning fees, operational costs
❌ Doesn’t tell you profitability alone

Pro Tips

• Optimize ADR & occupancy together—don't just lower prices.
• Compare RevPAR with competitors to find pricing gaps.
• Use dynamic pricing tools to maximize RevPAR automatically.

The Bottom Line

RevPAR is crucial for Airbnb hosts & STR investors.
If you’re not tracking it, you’re leaving money on the table.

What’s your current RevPAR? Let’s compare strategies in the comments!