TRevPAB (Total Revenue Per Available Bed)

What is TRevPAB and Its Key Aspects?

TRevPAB or total revenue per available bed is a performance-based metric which is majorly used by hotels and serviced apartments with multiple rooms. This tracks the total revenue that your property is generating from each bed that is available. It offers a more accurate and transparent view of the performance of your rooms than conventional metrics, such as TRevPAR or RevPAR. It is essential for those properties where single rooms may accommodate four, six, or even more people at a time.

Calculating TRevPAB-How to Go About the Process

The formula is the following-

Total Revenue/Total Available Beds

To calculate this figure, you have to take the total revenue over a certain period, inclusive of the accommodation and other non-room sales. You can then divide this figure by the total number of beds that you have at your property. So, to take an example, let’s say in a month your hotel earns $90,000 in revenues and you already have 90 beds available. So, the available bed nights are 90x30 = 2,700 bed nights. Divide $90,000 by 2,700 and you will get the final TRevPAB, which is $33.33.

Why TRevPAB Matters

Metrics such as RevPAR or GOPPAR sometimes work suitably for conventional hotels, since rooms are the primary unit of inventory. However, in the case of shared accommodation, where guests book beds in place of whole rooms, these are not accurate reflections of your revenue efficiency or demand. TRevPAB gives you a more relevant view of performance by aligning actual guest capacity with the revenue tracking. Hence, by tracking this metric, any manager can easily identify how various bed types and configurations are performing for your property.

You can also optimize your pricing depending on the season, while evaluating the impact of up- selling, such as tours, breakfasts, etc. This metric also helps you get a picture of how you can sync your staff planning, budgeting, and marketing in line with per-bed performance instead of generalizing it on a per-room basis.

TRevPAB Differences from TRevPAR or RevPAR

Understanding the differences between TRevPAB and other metrics like RevPAR and TRevPAR is vital. TRevPAB is for those properties which do not have a one-room-per-guest model. On the other hand, RevPAR will help you track the revenue on a per room basis. TRevPAR further scales this to include all sources of revenues. However, both these metrics account for a fixed room cost.

You should also know that TRevPAB shifts more focus to beds, enabling more accurate analysis of performance in shared spaces or dormitories. It is helpful when you have to compare dormitories, for instance, with varying bed capacities, based on seasonal demand. It will help you fix tiered pricing structures for each bed as well. If you have both shared spaces and private rooms, you can consider using TRevPAB with RevPAR to get a more extensive view of overall performance.