Maximizing F&B Revenue: Why Hotels Should Embrace RevPAG 

For decades, the hotel industry has relied on Revenue Per Available Room (RevPAR) as its primary performance indicator. While RevPAR remains a valuable metric for room performance, it proves inadequate in capturing the comprehensive financial health of a hotel, particularly with respect to evaluating F&B operations. As hotels transition into multifaceted lifestyle destinations, with restaurants and bars often becoming attractions in their own right, a more comprehensive metric is required to guide strategic decisions and investment allocations. 

Revenue Per Available Guest (RevPAG) has emerged as an approach that considers the total value a guest contributes to a property, including their F&B expenditure. By reorienting the focus from rooms to guests, RevPAG unveils new opportunities for understanding and optimizing F&B operations, ultimately driving both guest satisfaction and profitability, and increasing revenue beyond the room.  

The Growing Importance of F&B…