Question 1

What is RevPAB and why is it important for hostels?

Accepted Answer

RevPAB stands for Revenue Per Available Bed. It's a crucial KPI for hostels because, unlike hotels that focus on rooms (RevPAR), the primary revenue-generating unit in a hostel is the individual bed. It helps you understand how effectively you are monetizing your entire inventory, not just the beds you sell.

Question 2

What's the difference between RevPAB and ADR (Average Daily Rate)?

Accepted Answer

ADR (or in this case, Average Bed Rate) is the average rate paid for beds that were *sold*. RevPAB is the average revenue across *all* available beds, including empty ones. RevPAB is a more comprehensive metric because it's affected by both your pricing (ADR) and your ability to fill beds (occupancy).

Question 3

How can I improve my RevPAB?

Accepted Answer

Improving RevPAB involves a two-pronged approach:Increase Occupancy: Use better marketing, dynamic pricing for off-peak times, or partnerships to sell more beds.Increase Average Rate: Improve perceived value through better amenities, offer premium dorms/pods, or implement dynamic pricing during high-demand periods.Boost Ancillary Revenue: Revenue from tours, F&B, and other services increases your total revenue, which directly boosts RevPAB.

Question 4

Should I focus on Dorm RevPAB or Private Room RevPAB?

Accepted Answer

Both are important. Analyzing them separately helps you understand which part of your business is more profitable. If your private rooms have a much higher RevPAB, it might be a signal to convert a dorm into more private rooms, if space and demand allow. Conversely, if dorms are outperforming, you can focus marketing efforts there.

Question 5

What is a good RevPAB for a hostel?

Accepted Answer

This varies dramatically by city, country, and hostel type. A budget hostel in a developing country might have a RevPAB under $10, while a high-end 'poshtel' in a major European city could exceed $50. The best approach is to benchmark against your own historical data and your closest local competitors.

RevPAB Calculator

Inventory

Revenue

Results

Understanding RevPAB

Frequently Asked Questions

Need Help Optimizing Your Hospitality Business?