RevPAR or Revenue Per Available Rental, is a useful metric to see demand in a market. Looking at how many bookings were made and in turn how much revenue was generated showing the most or least popular times.
This metric is useful as it provides insight into seasonality in the market by calculating the average daily rate and the occupancy rate. In MarketMinder, we show both daily and monthly RevPAR under the Seasonality tab, both of which are calculated differently:
Daily RevPAR - Average daily rate for that date x the occupancy rate for that date
Monthly RevPAR - Total market revenue x total available listings
In the calendar view, you can see the daily RevPAR for each month. This is color-coded from dark blue to dark red on the following scale:
Blue = lower demand
Red = higher demand
This daily RevPAR can give you insight into which days are more popular in your market — if weekends are dominant, or if bookings are consistent all week, for example.
As you can see in this market that is much busier on weekends, Fridays and Saturdays are a lot darker orange, meaning that there is most demand on Friday and Saturday nights, and the majority of guests are not staying all week. This is fairly typical in Urban Markets.
Here, you can see a market that, as a whole, receives a lot more 7-day stays than weekend bookings. This is a lot more typical for traditional holiday destinations like beach or resort towns. The type of market will also have an effect on the time of year there is more demand:
Monthly RevPAR reports on the high and low points of demand across the last 36 months, as you can see below.
In this market, for example, you can see that the summer months are more in demand, and therefore higher revenues are generated, compared to the winter months, which are less popular.