RevPAR is the single most important metric for understanding a market’s performance. While Average Daily Rate (ADR) only measures the average revenue earned for booked nights, RevPAR factors in Occupancy to show the average revenue earned for every single night that is available. It tells us the value of every night on the calendar, whether it was booked or sat empty.
There are two ways to calculate RevPAR. Both produce the same result:
RevPAR = ADR × Occupancy Rate
OR
RevPAR = Total Revenue ÷ Total Available Nights
Let’s say total revenue earned by all short term rentals in a market was $200,000 in June. There were 2500 nights that were available for bookings and 1000 of them were booked.
ADR for June would be Revenue ($200,000) ÷ Booked Nights (1000) = $200.
Occupancy for June would be Booked Nights (1000) ÷ Available Nights (2500) = 40%.
REVPAR can be calculated using either of these ways:
REVPAR = ADR ($200) * Occupancy (40%) = $80
OR
REVPAR = Revenue ($200,000) ÷ Available Nights (2500) = $80
Why Market RevPAR matters
RevPAR is the ultimate measure of market efficiency. If prices are high but bookings are low, or occupancy is strong but rates are low, RevPAR will suffer. A high RevPAR indicates the market has found the “sweet spot,” where pricing and demand are well balanced to maximize total revenue.
Use the seasonality calendar to understand market efficiency
The seasonality calendar helps visualize when the market is performing at its best — and when opportunities may exist.
Identify performance peaks: Darker blue shades represent high RevPAR periods when pricing and demand are strongly aligned.
Spot underpriced opportunities: If major holidays or peak travel periods appear lighter, it may signal the market is pricing too low for demand — or pricing so high that guests are looking elsewhere.
Balance pricing vs. occupancy: RevPAR brings pricing and occupancy together, helping avoid focusing only on high occupancy or high rates in isolation.
Taking a look at Orlando, Florida’s seasonality calendar, it reveals a market that thrives on major holiday surges and very specific family travel cycles:
Spring Break Surge (March): You’ll notice March is covered in deep blue. This is the start of one of Orlando's most dynamic seasons, where high demand allows for premium rates and high occupancy simultaneously.
The Weekend Pattern: Throughout months like February, June, and July, the darkest shades consistently hit Fridays and Saturdays. This confirms that weekends are the primary revenue drivers, making them the best time to implement minimum stay requirements (like 3 nights) to protect RevPAR.
The Holiday Peak (December): The last two weeks of December show the highest RevPAR density of the year. This is Orlando's most lucrative season, where global winter school holidays drive demand and rates up.
The September Slowdown: September is noticeably the lightest month on the calendar. As school resumes and hurricane season begins, demand drops to its lowest of the year. During this breather, you might need to lower rates or offer discounts to keep RevPAR from bottoming out.
RevPAR Pro Tip:
Use our filters to compare your property’s RevPAR performance with listings similar in size, price tier, review score, and amenities. Use the formulas above to calculate your property’s RevPAR performance for various weekdays, weekends, and holiday periods and see how your RevPAR stacks up against the market. If it’s below the average for comparable properties, you may be misaligned—either pricing too high and losing occupancy, or pricing too low and leaving money on the table despite having a full calendar.