What does RevPASH mean? How do you calculate RevPASH?
Revenue Per Available Seat Hour (RevPASH) is utilised in food and beverage outlets.
Simple definition: RevPASH is a revenue management tool for food and beverage outlets in a hotel (similar to RevPar for Rooms). This calculation is useful to measure the usage and revenue of a seat per hour and it allows a better understanding and planning for the food and beverage manager.
Calculation: Total Outlet Revenue / (Available Seats x Opening Hours)
Cornell University explains it: “An essential measurement for restaurant revenue management is RevPASH, or revenue per available seat hour, which was introduced in 1998. This metric is useful, because it states revenue based on both time (hour) and capacity (seats). By tracking the RevPASH by day part, or even within day parts, the restaurant manager has a useful tool by which to measure performance and to guide his or her decisions to enhance revenue.”
There is plenty of discussion about whether RevPASH should be calculated based on the opening time of each check, or the actual duration of the meal. You can read more in a Cornell Report on this on their website at: https://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1143&context=chrpubs
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