What is the meaning / definition of REVPASH in the hospitality industry?
REVPASH stands for: Revenue Per Available Seat Hour
REVPASH as a revenue management tool for food and beverage outlets in a hotel (similar to RevPar for Rooms). This calculation is useful to measure the usage and revenue of a seat per hour and it allows a better understanding and planning for the food and beverage manager. Restaurants take reservations but walk-in guests are commonly expected during opening hours.
How do you calculate REVPASH?
- REVPASH Formula: Total Outlet Revenue / (Available Seats x Opening Hours)
It can be calculated hourly, daily, weekly and monthly.
It is also used to support restaurants to plan the labour scheduling, food purchasing, marketing tools and budgeting during the lowest occupancy.