TRevPAR as Hotels Performance Evaluation Indicator and Influencing Factors in Portugal

Abstract

In a global competition current scenario, measuring the performance of hotels is increasingly important for managers who, to take decisions, need management indicators and tools. The most common operating indicators are occupancy rate and RevPAR (Revenue Per Available Room). The goal of any hotel is to be as profitable as possible, so they must work on increasing revenues and decreasing costs. To increase revenues the focus has been on revenue management practices, and there is already several software that help hoteliers to define the most appropriate price for each customer. Therefore, managers mostly seek to increase accommodation revenue, however from a total revenue management perspective revenue from other departments must also be considered. The TRevPAR (Total Revenue Per Available Room) appears as a more comprehensive indicator that takes into account all hotels revenue sources. The purpose of this research is to study and highlight TRevPAR influence factors, since this information have practical implications in the hotel managers’ decision. This methodology was carried out through the analysis of 948 hotels from 2010 to 2017. The sample was obtained by crossing two databases: SABI platform and Portuguese National Tourism Registry (RNET). The tested determining factors were the hotel's location, size, number of stars and services. An original and exhaustive study in terms of services meets the purpose, thus, the influence on TRevPAR was tested on outdoor and indoor pools, tennis, golf, spa, meeting rooms and restaurants.

Management Accounting Practices in the Hospitality Industry: The Portuguese Background

“…Within the present study, a bibliometric analysis was applied, which is considered efficient for evaluating the degree of relevance of papers in a specific area (Cardoso et al 2020(Cardoso et al , 2021(Cardoso et al , 2022Lima Santos et al 2020a. The following sub-sections address the methods used and the procedures in detail.…”

“…Campos et al (2020);Carrera et al (2020);Metreveli et al (2020); LimaSantos et al (2020a);Pedroso and Gomes (2020);Machado and Nunes (2020); andNunes and Machado (2020). 2018 was the year with the lowest number of publications, with only two, both focused on activity-based costing and budgeting, byFaria et al (2018aFaria et al ( , 2018b.…”

“…There was an upward cycle in the period 2014-2016 and from 2019 to 2020.According to Figure4, from the 52 studies analyzed between 2010 and 2021, it appears that the most productive year was 2020, with seven publications. The most covered topic in 2020 was "hotel ratios and indicators", present in six studies by the following authors:Campos et al (2020);Carrera et al (2020);Metreveli et al (2020); LimaSantos et al (2020a);Pedroso and Gomes (2020);Machado and Nunes (2020); andNunes and Machado (2020). 2018 was the year with the lowest number of publications, with only two, both focused on activity-based costing and budgeting, byFaria et al (2018a,b).…”

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“…These studies can be categorized into two primary approaches: the first primarily integrates financial data, while the second approach incorporates various intrinsic and other extrinsic variables. As an instance, these latter studies (Sami & Mohamed, 2014;Bresciani et al, 2015;Lado-Sestayo et al, 2017;Lado-Sestayo & Vivel-Búa, 2018Menicucci, 2018;Lima Santos et al, 2020;Karhunen & Ledyaeva, 2021) include size, location, ownership structure, hotel affiliation, internationalization, first activity of the hotel, education (of the general manager and/or financial manager), population density, proximity to the airport, seasonality, number of stars, chain branding, occupancy rate etc. In their research Sami & Mohamed (2014) conclude that hotels affiliated within international chains or franchises, and this is in line with the study carried by (Karhunen & Ledyaeva, 2021).…”

“…Furthermore, effective management practice, particularly in terms of good asset management were found to exert a positive influence on a hotel performance. The same measure total -net revenue per available room (TRevPAR) -for hotel performance at Portugal hotel was used by (Lima Santos et al, 2020). Their results reveal that number of stars, location (districts Lisbon, Funchal and Braganca) as well and room size matter.…”