Revenue Management
NRevPAR — Net Revenue Per Available Room
RevPAR after the cost of distribution — a step toward profit, but still before operating cost.
Academic definition
Net Revenue Per Available Room (NRevPAR) refines RevPAR by deducting distribution and transaction costs — channel commissions, booking fees, and payment-processing charges — from room revenue before dividing by available rooms. It recognises that gross room revenue overstates what a hotel retains, because a meaningful share is paid to intermediaries to acquire the booking. By isolating the revenue that survives distribution, NRevPAR gives a more realistic view of rooms performance than RevPAR, and is increasingly used as channel costs have risen. It remains a revenue-side metric: it subtracts the cost of acquiring revenue but not the cost of delivering the stay, such as housekeeping, energy, and amenities. NRevPAR therefore sits between RevPAR and true profit measures, capturing distribution efficiency while leaving operating cost and the full set of profit leaks outside its scope.
Distribution & Transaction Costs = commissions, booking fees, payment charges · Available Rooms = total rooms × nights
Worked example
Room revenue of ₹45,00,000 less ₹5,40,000 distribution cost over 1,500 available room-nights gives NRevPAR = ₹39,60,000 ÷ 1,500 = ₹2,640 — below the ₹3,000 RevPAR.
The ProfitPAR™ lens
NRevPAR is RevPAR with its eyes half-open — it finally admits that the OTA took a cut. That admission matters, because distribution is one of the six leaks and often the largest. But stopping at distribution is stopping halfway: a booking can survive commission and still lose money once housekeeping, energy, amenities, and a discounting giveaway are counted. NRevPAR tells you what reached the hotel's revenue line, not what reached the owner. ProfitPAR™ continues past the channel to subtract every leak between net revenue and retained profit, so the number you act on is the number that survives all the way to the account, not just past the OTA.
Revenue that survives the OTA still has five more leaks to cross.
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.