Kimes Sheryl E. and Chase Richard B.
Journal of Service Research
In Revenue Management the biggest emphasize is on RevPar which is a function of ADR and Occupancy. The RevPar metric become popular because it’s easy to calculate and compare. However, the lack of complexity also creates some pitfalls, which are described below. The need for more complex method created a new metric called GOPPAR (Gross Operating Profit Per Available Room). In following article I will explain the mathematics and advantages of this metric.