RevPAR vs. GOPPAR: Property- and firm-level analysis

Seoki Lee, Bing Pan, Sungbeen Park

Research output: Contribution to journalArticle

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.

Original languageEnglish (US)
Pages (from-to)180-190
Number of pages11
JournalAnnals of Tourism Research
Volume76
DOIs
StatePublished - May 2019

Fingerprint

revenue
profit
firm
performance standard
performance
analysis
Profit
Revenue
industry
Performance measures
hotel industry

All Science Journal Classification (ASJC) codes

  • Development
  • Tourism, Leisure and Hospitality Management

Cite this

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title = "RevPAR vs. GOPPAR: Property- and firm-level analysis",
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.",
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RevPAR vs. GOPPAR : Property- and firm-level analysis. / Lee, Seoki; Pan, Bing; Park, Sungbeen.

In: Annals of Tourism Research, Vol. 76, 05.2019, p. 180-190.

Research output: Contribution to journalArticle

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