# What is RevPan and why is it important?

> Revenue per Available Night shows your total revenue divided by the total number of available nights. A listing is considered "available" if it is listed wit...

Source: https://support.beyondpricing.com/en_us/what-is-revpan-and-why-is-it-important-SkZ9u9yst

Last updated: 2024-06-03T13:58:14.441Z

Revenue per Available Night shows your total revenue divided by the total number of available nights. A listing is considered "available" if it is listed with no calendar blocks, owner stays, or $0 reservations. In other words, if a listing is available, that means it is bookable.

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# **Why is it important?**

  

Traditional metrics simply don't tell the full story.

Factors such as owner blocks, listing count growth, and market swings (such as a global pandemic) mean year-over-year revenue is not necessarily indicative of success at Beyond. Occupancy and Average Daily Rate (ADR) are important, but neither alone leads to more revenue.

This is where Revenue per Available Night (RevPAN) comes in. In effect, available nights are the nights that a Property Manager has control over, and an effective pricing strategy is one in which the PM is maximizing revenue per available night or RevPAN.

RevPAN removes factors outside of the PM's control, such as owner & maintenance blocks, unlisted nights, and listing growth, while Total Revenue per Listing does not normalize for these factors.

   For example, say a listing is listed for all of June. There is an owner stay for the first 10 days and one booking for the remainder of the month: 5 days, $500 total revenue, $100 Average Daily Rate (ADR). 'Total Revenue per Listing' for the month of June would be $500. 'RevPAN' for the month of June would be $500 revenue for the month / 20 available days = $25 per available night.