Room Rate Optimizer
Find the optimal room rate to maximize RevPAR using demand elasticity and competitive positioning.
Inputs
Results
Optimized Rate
$150.00
≈ 10 movie tickets
Optimized RevPAR
$105.00
≈ 7 movie tickets
How to Use This Calculator
- Enter the Current Rate (ADR) and Current Occupancy (%).
- Set the Price Elasticity — how sensitive demand is to rate changes (typically -0.5 to -2.0).
- Enter the Comp Set Average Rate and any Demand Factor for events or seasonal shifts.
- Set Total Rooms available.
- Review Optimized Rate, Optimized RevPAR, Projected Occupancy, and compare against your Current RevPAR.
How the result changes with Current Rate (ADR)
| Current Rate (ADR) | Optimized Rate | Optimized RevPAR |
|---|---|---|
| $227.00 | $227.00 | $158.90 |
| $720.00 | $720.00 | $504.00 |
| $1,311.00 | $1,311.00 | $917.70 |
| $1,803.00 | $1,803.00 | $1,262.10 |
What each input means
- Current Rate (ADR)
- Current average daily rate.
- Current Occupancy
- Current occupancy percentage.
- Price Elasticity
- Demand sensitivity to price. <1 = inelastic, >1 = elastic. Budget hotels ~1.5, luxury ~0.5.
- Comp Set Avg Rate
- Competitive set average rate for benchmarking.
- Demand Factor
- Demand multiplier. >1 for high-demand periods (events, holidays).
- Total Rooms
- Total room inventory.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersCurrent Rate (ADR) = 150, Current Occupancy = 70, Price Elasticity = 1, Comp Set Avg Rate = 145 = 6 input(s) provided
- Calculate Optimized Rate150 = $150
- Calculate Optimized RevPAR105 = $105
- Calculate Projected OccupancyProjected Occupancy70 = 70
- Calculate Current RevPARCurrent RevPAR105 = $105
Engine last updated . Checked against 1 independently-derived test — how we verify calculators.
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