RevPAR vs. GOPPAR: Property- and firm-level analysis
Seoki Lee,
Bing Pan and
Sungbeen Park
Annals of Tourism Research, 2019, vol. 76, issue C, 180-190
Abstract:
Revenue per Available Room (RevPAR) has been widely used as the standard performance measure for the hotel industry. However, hoteliers have also recognized limitations of RevPAR and developed other alternative performance measures. Gross Operating Profit per Available Room (GOPPAR) has become popular as an important alternative performance measure because it resolves limitations of RevPAR. Nevertheless, practical implications of the comparative validity and usefulness between the two measures have not been fully and empirically investigated in the past literature. Therefore, the current study seeks to fill that gap by comparing RevPAR and GOPPAR at the property- and firm-level. This study found that RevPAR is, in general, a more useful measure than GOPPAR at the firm-level and mixed results at the property-level.
Keywords: RevPAR; GOPPAR; Hotel performance measure (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:76:y:2019:i:c:p:180-190
DOI: 10.1016/j.annals.2019.04.006
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