Author Question: Do you think that yield is more or less important than the REVPAR as a yardstick for lodging ... (Read 88 times)

captainjonesify · **on:** Sep 11, 2019

Question 1

What travel and tourism sectors does the motorcoach industry most resemble in terms of services and types of customers? Least resemble?

What will be an ideal response?

Question 2

Do you think that yield is more or less important than the REVPAR as a yardstick for lodging performance?

What will be an ideal response?

vkodali · **Reply #1 on:** Sep 11, 2019

Answer 1

In terms of services, the motorcoach industry most resembles the railroads because they both serve lower-end consumers and their geographical reach is similar. They also resemble tour operators because both sectors are dominated by small companies. There is also a resemblance to the low-cost segment of the airline industry due to the reach of service into smaller cities. They least resemble the network airlines, the lodging industry, and the cruise lines, which are dominated by large companies with a global reach.

Answer 2

Either one may be correct depending on the circumstances. If strictly for internal company measurement, yield may be more helpful than REVPAR because it shows how a property's actual revenue measures up to its potential revenue. If a hotel can compare its REVPAR to that of its competitors, then REVPAR may be the better gauge of revenue performance.