The formula
RevPAR = room revenue ÷ room nights available
RevPAR = ADR × occupancy rate
Room nights available is rooms × nights in the period. Because the denominator counts every room, RevPAR falls when rooms sit empty even if the price held — which is the whole point of it.
Example: a lower price, a higher RevPAR
| 20 rooms, 30 nights | Month A | Month B |
|---|---|---|
| Room nights available | 600 | 600 |
| Room nights sold | 300 | 450 |
| Price (ADR) | ₹3,000 | ₹2,400 |
| Room revenue | ₹9,00,000 | ₹10,80,000 |
| Occupancy | 50% | 75% |
| RevPAR | ₹1,500 | ₹1,800 |
In month B the price fell by ₹600 and RevPAR still rose by ₹300, because 150 more rooms were sold. Whether that is the better month also depends on the cost of servicing 150 more stays — RevPAR measures revenue, not profit.
How Nivasik handles it
Revenue Insights in Nivasik shows revenue against occupancy from the property's own reservations and folios, and the next-30-nights view counts capacity as units × 30 across every night, not just the nights that are booked.