👉 How much value each guest truly generates.
📘 What is Revenue per Guest (RevPG)?
Revenue per Guest (RevPG) measures the average total revenue generated by each guest throughout their interaction with the hotel.
Unlike room-focused KPIs, RevPG evaluates the guest’s complete economic value, including:
- accommodation,
- F&B,
- spa,
- upselling,
- ancillary revenue,
- experiences,
- personalised extras,
- additional in-stay spending.
It is particularly useful for hotels aiming to strengthen ancillary revenue streams and adopt a more holistic revenue strategy.
📊 Revenue per Guest (RevPG) Formula
RevPG = Total Revenue / Number of Guests
Where:
- Total Revenue = total generated revenue
- Number of Guests = total number of guests
✅ Why is Revenue per Guest (RevPG) important?
- Measures the total value generated by each customer.
- Goes beyond room revenue alone.
- Helps identify upselling and cross-selling opportunities.
- Supports personalisation and segmentation strategies.
- Encourages decisions focused on maximising total guest profitability.
💡 Practical example of Revenue per Guest (RevPG)
A hotel welcomes 200 guests over a weekend and generates revenue from:
- rooms,
- restaurant,
- spa,
- parking,
- late check-out.
Total revenue: €40,000.
→ RevPG = €40,000 / 200 = €200 per guest
This helps understand the actual average value generated by each guest beyond the room rate itself.
🔄 Disambiguation of Revenue per Guest (RevPG)
- RevPG vs ADR:
ADR measures the average price per room sold.
RevPG measures the total value generated per guest. - RevPG vs RevPAR:
RevPAR evaluates performance per available room.
RevPG evaluates economic performance per guest. - RevPG vs TRevPAR:
TRevPAR measures total revenue per available room.
RevPG focuses on individual guest value. - RevPG vs CLV (Customer Lifetime Value):
RevPG measures value generated during a specific stay or period.
CLV analyses the guest’s long-term value.
In summary: RevPG = how much revenue each guest truly generates — not just how much they pay for the room.
