Illustrative
Same RevPAR. One of them is underpriced.
Property A
Average rate
$170
Occupancy
90%
Sells out early, every week, at a rate that has not moved. The occupancy is buying the RevPAR.
Property B
Average rate
$204
Occupancy
75%
Holds rooms back on peak nights and gets paid for them. Fewer rooms sold, same revenue per room available.
RevPAR combines rate and occupancy into one figure, so a rate that is too low can be offset by the occupancy it buys. The number holds steady and the gap stays hidden inside it.