To truly understand the financial impact of every stay, you need a metric that goes deeper than room revenue alone. Revenue per Available Guest (RevPAG) provides a comprehensive view of the total revenue generated by each guest, making it a useful profitability metric—especially for properties that earn significant non-room revenue.
How to Calculate RevPAG
Determined by dividing total guest revenue by the number of guests over a given time frame, RevPAG captures not only room revenue but also ancillary spending such as dining, spa services, activities, and other on-property purchases.
RevPAG = Total Guest Revenue ÷ Number of Guests
By broadening the focus beyond accommodations, RevPAG highlights the full value of each guest relationship. An elevated RevPAG is an indicator of exceptional guest experiences that drive higher overall revenue, inspire repeat stays, fuel positive reviews, and attract new customers.
How to Increase RevPAG
RevPAG grows when guests are presented with relevant opportunities to engage with ancillary services, whether that’s curated activities, dining experiences, spa treatments, or other value-adds. Your property supplies far more than a place to sleep, but those enhancements must be marketed appropriately, otherwise they’ll be perceived as an annoyance rather than an opportunity. Avoid promoting honeymoon packages to business travelers or children’s programs to couples seeking a romantic escape. Instead, tailor the offer to the guest. Eighty percent of customers are more inclined to purchase from companies that provide personalization.
To deliver meaningful personalization, you must achieve effective guest segmentation—separating your honeymooners from your business travelers. Do this by leveraging the data collected through your booking engine and stored in your property management system (PMS). WebRezPro’s booking engine captures valuable details such as contact information, special requests, dietary preferences, and more, empowering properties to design offers that truly resonate.
Even seemingly small data points, like a guest’s home address, offer powerful insights. Knowing whether a visitor is local or traveling from afar allows you to craft targeted promotions and follow-up campaigns that feel pertinent and timely.
How to Manage RevPAG
Managing upsells to increase RevPAG must be seamlessly aligned with your reservation process. If the process is cumbersome—laden with extra steps or confusing interfaces—guests are far more likely to abandon ancillary purchases or, worse, seek alternatives at a competing property.
Invest in a streamlined, user-friendly booking engine integrated with your PMS that enables guests to easily select add-ons and activities as they complete their reservation. In WebRezPro, upsell options are presented in attractive, on-demand pop-up modals complete with images to entice purchases.
However, promotions don’t have to be limited to the moment of booking; they can be strategically delivered throughout the guest journey, including in confirmation and pre-arrival emails. Upsell revenue generated from confirmation emails is on the rise, reaching an average of 90 dollars per booking in 2024, which means this is an opportunity no property should overlook. WebRezPro makes emails easy with automated templates that lighten staff workload while ensuring no guest falls through the cracks. Templates can be tied to specific rates and unit types so that only the most relevant offers are shared with each guest.
Our system also integrates with a wide range of customer relationship management and guest messaging platforms. These tools provide deeper guest insights and empower you to share the right message at the right moment… via the right medium. Text messages can be as or more effective than email, with an average open rate of 98 percent. By testing and refining communication methods, you’ll discover the approach that resonates best with your audience.
Upsell opportunities continue once the guest arrives on property and can be thoughtfully woven into the experience without feeling intrusive. For example, when a guest has already booked at your spa, they are naturally more inclined to consider enhancements such as a massage, facial, or specialty treatment. Your point-of-sale system is essential in supporting these moments. When integrated with your PMS, your POS system can post ancillary charges directly to the guest’s room for a seamless payment experience. Make it as simple as possible for them to spend with you!
How to Analyze RevPAG
Robust reporting and analytics within your PMS help you evaluate whether your RevPAG is meeting business goals and identify opportunities for growth. In WebRezPro, key reports that support RevPAG analysis include:
- Custom Booking Report – Our most versatile reporting tool, it allows you to select booking parameters that matter most to your unique property, including reservation status, unit type, package revenue, and much more. Once you’ve created a customized template, you can save it for future use and email it directly from the system.
- Chart of Accounts – Your chart of accounts categorizes income by source, exposing the performance of each ancillary revenue stream—for example, spa revenue and F&B. This detailed breakdown indicates which areas are most successful and where new opportunities may lie.
- Products / Services Sales Report – The products/services report shows revenue from each add-on sold by your property over a specified period and helps pinpoint your most profitable. By presenting ancillary revenue independently from room revenue, it provides clear insight into the true performance of your property’s additional products and services.
- Property Stats Report – The property stats report displays a comprehensive view of key hotel performance metrics year over year that includes total revenue and total guests in-house—data you can use to calculate your RevPAG. The report also contains RevPAR, enabling you to compare the two metrics and reveal any missed revenue opportunities. If occupancy is strong, but guests spend off-property rather than with you, this is where that gap appears.
Modern travelers seek personalized, memorable experiences that go far beyond a comfortable place to sleep, and your ability to deliver those elevated offerings is what sets your property apart. By actively working to increase RevPAG, you’ll maximize return on investment for every guest.
