RevPAB (Revenue Per Available Bed) is one of many business ratios of this type in revenue management. It is easily confused with RevPAR. This is partly because it sounds so similar and partly because it is also very similar to RevPAR. We’ll explain where the difference is, and when this figure comes into play.

## What is the RevPAB? – Explanation

RevPAB stands for Revenue per Available Bed. It is the counterpart to RevPAR. The devil is in the detail, because the only difference is that this key figure is not calculated per available room, but per available bed.

You therefore calculate the room revenue per available bed. You can look at this ratio for different time periods.

## RevPAB (Revenue Per Available Bed) Calculation

Just like RevPAR, you can calculate RevPAB in two different ways:

Lodging turnover / total available beds
Current daily rate (per bed) x occupancy in %.

## Example of Calculating the RevPAB

In the following example, our hotel has 200 beds, of which 100 are occupied, at a daily rate of 50 € per bed. This results in a turnover of 5,000 €. The occupancy rate is 50%. The Revenue Per Available Bed is calculated as follows:

5.000 € / 200= 25 €
50 € x 0,5 = 25 €

in this example, the hotel has a revenue of 25 €. You can see that both calculation methods yield the same result.

## Application in practice

The RevPAB is used less often than the RevPAR. This is because most hotels primarily look at room occupancy. Then it also makes sense to look at all key figures on the same basis. Hotels that basically work with the bed occupancy rate should therefore rather look at the RevPAB instead of the RevPAR.

In general, it can’t hurt to look at both key figures and compare them. Only then does it become clear what role double and single occupancy of the rooms actually plays. The simple way here would be to look at the double occupancy factor in parallel. It is important not to confuse the different approaches.