Revenue Per Available Seat Hour (RevPASH) is a KPI used by food and beverage outlets in a hotel. It is similar to RevPAR, which is used to evaluate room revenue. RevPASH measures revenue generated by a food and beverage (F&B) outlet per hour based on available seats. It can be calculated daily, weekly, and monthly.
What is Revenue Per Available Seat Hour (RevPASH) For?
RevPASH is used to measure seat usage in a given F&B outlet. It also measures the revenue generated per available seat hour. Because all F&B visitors don’t always make a reservation before their visit, this metric is a useful way for food and beverage managers to evaluate revenue generated by walk-in guests during opening hours.
Benefits of Revenue Per Available Seat Hour (RevPASH)
RevPASH is a useful KPI for food and beverage managers to get a better understanding of how a hotel’s various F&B outlets are performing. It is also used to plan F&B promotions, labour scheduling, food purchasing, marketing tools, and budgeting during periods of lowest hotel occupancy.
Limitations of Revenue Per Available Seat Hour (RevPASH)
RevPASH does not provide the full picture of an F&B outlet’s financial performance. Food and beverage managers should also evaluate the margins of individual menu items, rather than focusing solely on total revenue.
How is Revenue Per Available Seat Hour (RevPASH) Calculated
RevPASH is calculated by first multiplying available seats by opening hours. Then you can divide total outlet revenue by the above result for a final RevPASH calculation. When calculating RevPASH, the number of opening hours you use depends on the time period for which you wish to calculate it.
Example of Revenue Per Available Seat Hour (RevPASH) Calculation
RevPASH = Total Outlet Revenue / (Available Seats x Opening Hours)
We’ll make this RevPASH calculation for a weekly period based on a 60-seat restaurant open six days a week for six hours per day.
Total Outlet Revenue = $44,000
Available Seats = 60
Opening Hours = 36
RevPASH = $44,000 (Total Outlet Revenue) / (60 (Seats) x 36 (Opening Hours)) = $20.37