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← Straight Answers Part of: Airbnb numbers explained

Owner terms · 3 min read

What is RevPAR? Count every night, even the empty ones

RevPAR (revenue per available room) is the money your home made ÷ every night it was open, booked or empty. A home open all 30 nights of a month that made RM4,800 has a RevPAR of RM160. It shows the price and the empty nights in 1 number.

7 glass tubes joined at the bottom stand on a dark green base, each a night with a moon. Gold coins drop into 5 clear tubes. The 2 dark tubes with a grey moon get no coin, yet gold fills all 7 to the same level.

In short

  • RevPAR = money made ÷ nights open. Empty nights count.
  • Nights you block can count as open, or not. Same money, different RevPAR. Ask which.
  • RevPAR counts money in, not costs. 2 months with the same RevPAR can leave you different money.
In this article

Your statement says your unit made RM4,800 in a 30-night month. Good month? The total alone can't tell you.

This guide is for owners of short-stay homes in Johor Bahru, but the sums work for any home on Airbnb.

RevPAR at a glance
What it stands forRevenue per available room. For 1 home: money per night open
The sumMoney made ÷ nights open, or ADR × occupancy
Unit ARM4,800 ÷ 30 nights = RM160
What it can hideBlocked nights left out of "open", and costs like cleaning

Unit A is made up: open all 30 nights of a month, 24 nights booked, RM4,800 made.

Play the video: What Is RevPAR on Airbnb? Revenue Per Available Room Explained in Under 3 Minutes, 2:51
Prefer to watch? Here’s RevPAR in 2:51.

RevPAR: your month's money, spread over every night

Take 2 nights: 1 booked at RM200, 1 empty. Shared over both, that's RM100 a night.

Now Unit A: 24 of 30 nights booked, RM4,800 made. Shared over booked nights only, that's ADR (average daily rate). Shared over every night, it's RevPAR:

Spread the money

Unit A made RM4,800 in a 30-night month. Share it out.

ADR
RM200
RM4,80024 nights booked
RevPAR
RM160
RM4,80030 nights open

The RM4,800 never changes. Only the number of nights sharing it does.

1 made-up unit, open all 30 nights. Each bar is 1 night. Its gold is that night's share, to scale.

RevPAR equals money made divided by nights open

Why use RevPAR, not just the month's total?

2 months, or 2 homes, can have different nights open. RevPAR makes them fair to compare: money per night open.

Why RevPAR counts the nights nobody booked

Think of the nasi lemak stall in our ADR guide. It wraps 14 packets and sells 10 at RM3: RM30 in the tin. ADR asks what each packet sold brought in: RM3.

RevPAR asks what each packet wrapped brought in, on average: RM30 ÷ 14 = about RM2.14. The 4 left over can't be sold tomorrow, just like a night nobody booked. That's the wrong sum for ADR, but the right one for RevPAR.

Back to Unit A: RM200 a booked night, but only 24 of 30 nights were booked. That 80% is occupancy, so each night averages 80% of RM200.

RevPAR equals ADR times occupancy equals RM200 times 80% equals RM160

Did you block nights? Same money, different RevPAR

What counts as a night "open"? A night you block isn't open to book, but you can still divide by every night of the month.

Say you block 5 nights for your own stay. RevPAR can come out 2 ways:

Owner nights: open or not?

You block 5 nights. The money doesn't change. Does RevPAR?

Count your 5 nights as open: 30 nights open

Money
RM4,800
same
Occupancy
80%
24 ÷ 30
RevPAR
RM160
÷ 30 nights

Leave your 5 nights out: 25 nights open

Money
RM4,800
same
Occupancy
96%
24 ÷ 25
RevPAR
RM192
÷ 25 nights

The RM4,800 is the same both ways. Only the number of nights on the bottom changes.

1 made-up unit in a 30-night month. Bar height is each night's share of the money, to scale.

Neither way is wrong. Leaving them out shows how well the nights for sale sold. Counting them shows the whole month.

Same RevPAR, less money left? Count the cleanings

RevPAR counts money in. It doesn't count what it cost to earn it.

Every stay needs a cleaning, so the same 24 nights cost more as short stays:

Unit A's 24 booked nights

How long is each stay?

Nights per stay

RevPAR
RM160
RM4,800 ÷ 30 nights
Left after cleaning
RM4,080
RM4,800 − 12 × RM60

Make it 6 stays of 4 nights instead: still RM160 RevPAR, but only 6 cleanings, so RM4,440 is left. That's RM360 more for the same RevPAR.

1 made-up unit: RM4,800 made with no guest cleaning fee in it, 24 of 30 nights booked, a made-up RM60 cleaning you pay for each stay.

A guest cleaning fee may cover the cleaning. Laundry, toiletries and wear still grow with every check-in.

Before any discount, read should you give a last-minute discount?

What's a good RevPAR? Compare it with the right month

There's no single good RevPAR: a studio and a 3-room unit earn different money.

New on Airbnb? Write down each month's RevPAR, so a year on you have one to compare with.

Our advice: also compare with a similar home in the same building, counted the same way.

Work out your own RevPAR in 1 minute

Do it once a month, when your statement comes in.

Work out your own RevPAR

Type in 1 month from your statement.

RevPAR
RM160
RM4,80030 nights open
ADR
RM200
RM4,80024 nights booked
Occupancy
80%
24 nights booked30 nights open

Nights open: every night of the month, or leave out nights you blocked. Nothing you type leaves your phone.

Before you trust a RevPAR: 3 checks

0 of 3 checked

For the rest of the statement, read how to read your manager's monthly statement.

It's number 2 of our 3 Airbnb numbers every owner should know.

Questions owners ask

Which is better, RevPAR or ADR?

Our advice: if you watch only 1, watch RevPAR, as it counts both your price and your empty nights. Keep ADR to check your price. If ADR goes up but RevPAR falls, the extra empty nights cost more than the higher price earned.

My unit has 3 bedrooms. Do I divide by 3?

No. The name comes from hotels, where each room is sold on its own. On Airbnb the whole home is the "room", so divide by nights, not bedrooms.

Can RevPAR be higher than ADR?

No. RevPAR shares the same money over the same nights or more, so each share can't be bigger. They are equal only when every night open was booked.

Does Airbnb show RevPAR?

Not by that name. Our reading of its help page: its "occupancy rate" can draw on up to 48 months back and 2 years ahead. It may not be 1 month's figure, so work RevPAR out yourself from 1 month's money and nights.

Sources: RevPAR is room revenue ÷ rooms available, which equals ADR × occupancy: Investopedia. Airbnb's occupancy rate is "your nights booked at your listings divided by the total available nights", and its "average nightly revenue" includes "fees you charge" and is counted "before our service fee": Airbnb Help Centre. The prices, bookings, cleaning costs and units in this article are made-up examples. Simon runs RoomGuru, which has managed homes in Johor Bahru on Airbnb since 2023. This is general information, not financial advice.