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

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  • Lee, Seoki
  • Pan, Bing
  • Park, Sungbeen

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.

Suggested Citation

  • Lee, Seoki & Pan, Bing & Park, Sungbeen, 2019. "RevPAR vs. GOPPAR: Property- and firm-level analysis," Annals of Tourism Research, Elsevier, vol. 76(C), pages 180-190.
    • Handle: RePEc:eee:anture:v:76:y:2019:i:c:p:180-190
    DOI: 10.1016/j.annals.2019.04.006
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    References listed on IDEAS

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    4. Zvi Schwartz & Mehmet Altin & Manisha Singal, 2017. "Performance measures for strategic revenue management: RevPAR versus GOPPAR," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(4), pages 357-375, August.
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    Cited by:

    1. Beta Septi Iryani & Muhammad Halley Yudhistira & Khoirunurrofik Khoirunurrofik & Djoni Hartono, 2024. "Conformity or differentiation? The effect of competitive strategy on hotel performance," Tourism Economics, , vol. 30(2), pages 522-538, March.
    2. Crespo Catarina & Gomes Conceição & Malheiros Cátia & Santos Luís Lima, 2023. "Determinants and COVID-19 effects on RevPAR: The case of Europe," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(1), pages 97-109, December.
    3. Colin Steitz & Joshua Hall, 2020. "The Impact of Conventions on Hotel Demand: Evidence from Indianapolis Using Daily Hotel Occupancy Data," JRFM, MDPI, vol. 13(10), pages 1-15, September.

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