Total Revenue Per Client (TRevPEC) is a hotel KPI that can be used to evaluate how much revenue is generated from each visiting customer. It breaks down family and group bookings to provide more information on revenue per customer for those bookings. TRevPEC can be calculated for a selected time period, depending on a hotel revenue manager’s preference.
What is Total Revenue Per Client (TRevPEC) For?
TRevPEC is used for calculating the total revenue generated by each customer. It also accounts for double-occupancy reservations and family occupancy bookings. Since it accounts for these types of bookings, it is one of the more useful hotel KPIs for evaluating whether or not a hotel should offer family rooms or suites during specific demand periods.
Benefits of Total Revenue Per Client (TRevPEC)
TRevPEC can be used in conjunction with RevPAR to make strategic decisions that will help a hotel improve profitability. Understanding TRevPEC and comparing it with visitor demographics can help revenue managers identify market segments that are more profitable than others.
Limitations of Total Revenue Per Client (TRevPEC)
TRevPEC should only be evaluated alongside a thorough understanding of hotel guest demographics. A consideration of TRevPEC without a holistic understanding of guest demographics can result in misguided strategic marketing decisions.
How is Total Revenue Per Client (TRevPEC) Calculated
TRevPEC is calculated by dividing a hotel’s total revenue by its total number of guests. It can be calculated for various time periods. For this KPI, Total Revenue includes revenue from accommodations, breakfast sales, bar sales, spa sales, mini bar sales, and any other ancillary sales.
Example of Total Revenue Per Client (TRevPEC) Calculation
TRevPEC = Total Revenue / Total Number of Guests
This is a calculation of annual TRevPEC*
Total Revenue = $4,285,000
Total Number of Guests = 10,990
TRevPEC = $4,285,000 (Total Revenue) / 10,990 (Total # of Guests) = $389.90