RevenueAdvanced

Improve Hotel RevPAR

Find the right balance of rate and occupancy to lift revenue per available room.

Occupancy and ADR each tell half a story, and chasing either one alone leads you astray — a full hotel at a giveaway rate and a near-empty one at a premium can both feel like success while quietly underperforming. RevPAR (revenue per available room, roughly ADR × occupancy) collapses both into the single number that actually reflects how hard your rooms are working, which is why it's the metric serious revenue managers optimise.

This prompt does two things most owners never sit down to do: it works the arithmetic so you can see the trade-offs explicitly (does +10% ADR at −5% occupancy help or hurt?), and it pushes past gross RevPAR to net RevPAR after OTA commission. That second step is where the real money hides — two hotels with identical RevPAR keep very different amounts once a 15-20% commission is stripped out, so shifting bookings from OTA to direct can lift what you actually bank even when the headline number doesn't move.

Reach for it when you're unsure whether to push rate, push occupancy or change your channel mix, and re-run it monthly with fresh numbers since the answer moves with demand. It sits downstream of the ADR and occupancy prompts and upstream of the reduce-OTA-dependency work that so often turns out to be the highest-leverage move.

The Prompt
You are a revenue management expert. Help me improve RevPAR by finding the right balance of rate and occupancy.

Context:
- Hotel: [HOTEL NAME] in [LOCATION], [NUMBER OF ROOMS] rooms
- Current: ADR [AVERAGE ROOM RATE], occupancy [CURRENT OCCUPANCY %] (so my RevPAR is roughly ADR × occupancy)
- Channel mix: [OTA %] OTA / [DIRECT %] direct, with OTA commission around [OTA COMMISSION %]
- Demand pattern: [PATTERN]

Deliver:
1. My current RevPAR and net RevPAR after OTA commission, worked out from the numbers above.
2. Whether I should push rate, push occupancy, or shift channel mix to lift RevPAR — with the reasoning.
3. Two or three scenarios (e.g. +10% ADR at -5% occupancy) with the RevPAR outcome for each.
4. How improving direct share changes net RevPAR even if gross RevPAR stays flat.
5. The single highest-leverage move for my situation, and how to test it.

Show the arithmetic so I can follow the logic.

What to fill in

Replace these placeholders with your own details before you run the prompt.

[HOTEL NAME]
Your property's name.
[LOCATION]
City / area.
[NUMBER OF ROOMS]
Room count.
[AVERAGE ROOM RATE]
Your ADR.
[CURRENT OCCUPANCY %]
Recent occupancy.
[OTA %] / [DIRECT %]
Channel split.
[OTA COMMISSION %]
Average commission you pay OTAs.
[PATTERN]
Your demand rhythm.

How to use this prompt

  1. 1Include your OTA commission — net RevPAR is where the real money is, and it changes the recommendation.
  2. 2Ask for the scenarios as a small table so you can see the trade-offs at a glance.
  3. 3Re-run monthly with fresh numbers; RevPAR optimization is ongoing, not one-time.

Example input

Hotel: Varkala Cliff Resort, 20 rooms, ADR ₹7,000, occupancy 65%, mix 70% OTA / 30% direct, OTA commission 18%. Weekends strong.

What you'll get

Calculates RevPAR ₹4,550 and net RevPAR after commission, shows a mix-shift scenario (moving 15 pts from OTA to direct) lifts net RevPAR more than a rate push, presents three rate/occupancy scenarios with outcomes, and names improving direct share as the highest-leverage move with a test plan.

Pro tips

  • •RevPAR ignores commission. Track net RevPAR — two hotels with identical RevPAR can keep very different amounts.
  • •Shifting 10-15 points from OTA to direct often beats squeezing more rate or occupancy.
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