Revenue Glossary​

Revenue

👉 Income generated solely from the sale of hotel rooms.

📊 What is Revenue?

Revenue is the total money earned from rooms sold over a specific period, excluding other sources like food or events.

🧮 Revenue Formula

Revenue = Average Daily Rate (ADR) × Number of rooms sold

✅ Importance of Revenue

  • It is the main source of income for most hotels.
  • It allows you to measure the effectiveness of sales strategies and pricing on occupancy.
  • It is used to calculate key indicators such as REVPAR or GOPPAR.

📘 Example of Revenue

If a hotel sells 1,000 room nights at an average rate of £110

→ Revenue = 1,000 × €110 = €110,000

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