Revenue Management
Net RevPAR
Room revenue net of channel and commission cost, spread across every available room.
Academic definition
Net RevPAR expresses net room revenue — gross room revenue after deducting channel and commission costs — per available room. It is a close cousin of NRevPAR, and the two terms are often used interchangeably; differences arise mainly in which cost categories a given operator chooses to net out. The intent is the same: to correct RevPAR for the rising share of revenue lost to intermediaries and present a figure nearer to what the rooms business actually retains. Net RevPAR is useful in markets with heavy reliance on online travel agencies, where the gap between gross and net room revenue can be substantial. As with NRevPAR, it captures distribution cost but typically excludes the operating cost of servicing a room, so it represents a partial move toward profitability rather than a complete profit measure for the rooms department.
Net Room Revenue = room revenue after channel/commission cost · Available Rooms = total rooms × nights
Worked example
Net room revenue of ₹40,50,000 over 1,500 available room-nights gives Net RevPAR = ₹40,50,000 ÷ 1,500 = ₹2,700, against a gross RevPAR of ₹3,000.
The ProfitPAR™ lens
Net RevPAR and NRevPAR are the industry quietly conceding that gross revenue lies. Both pull commission out of the picture, which is the right instinct — but neither is consistent about which costs count, so two hotels can compute "net" differently and compare nothing. The deeper issue is that channel cost is only one of six leaks. Discounting, acquisition spend, cost per occupied room, cancellations, and operational drag are all still hiding inside the number. ProfitPAR™ fixes both problems at once: a defined, repeatable definition and the full set of leaks, so "net" means the same thing in every property and actually reaches retained profit per available room.
"Net" of commission is still gross of everything else.
Measure what each room actually keeps.
ProfitPAR is offered as a private revenue practice, by invitation. Tell us about your hotel to begin.
Request an InvitationWorked examples use illustrative figures in Indian Rupee (₹) with lakh/crore conventions. They are composite and representative, not drawn from any single property. ProfitPAR™ is a trademark of Sibasish Misra.