Total Revenue per Available Bed (TRevPAB)

Most hostels today offer more than just a place to stay… That’s why total revenue per available bed (TRevPAB) is such a critical metric for hostel operators, offering a comprehensive view of revenue-generating efficiency. Unlike traditional metrics that focus on occupancy rates or room revenue, TRevPAB encompasses all revenue streams.

What is TRevPAB?

Total revenue per available bed calculates the average revenue generated per bed from all sources: bed sales, restaurant/bar, rentals (bikes, hair dryers, towels), activities (pub crawls, walking tours), and misc. income like cancellation fees.

Divide total income by total beds available for sale (sold or unsold) to get a comprehensive measure of performance.

Why measure TRevPAB?

It’s a decision-making tool: breaking down revenue by available beds and ancillary services highlights which areas are most profitable and where to improve—pricing, services, and operations.

TRevPAR vs. TRevPAB

TRevPAR measures per room; TRevPAB measures per bed, which is the right lens for hostels and dorm-style inventory.

The significance of non-room revenue

Onsite restaurants/bars, excursions, and rentals both enhance the guest experience and materially grow total revenue.

Calculating TRevPAB

Steps

1. Gather revenue data: beds + ancillary + misc.
2. Determine total available bed nights: beds × nights in period.
3. Calculate: TRevPAB = total revenue ÷ total available bed nights.

Formula

TRevPAB = Total revenue / Total available bed nights

Example

• Total beds: 100
• Period: 30 days → 3,000 bed nights
• Revenue: $15,000 (beds) + $5,000 (F&B) + $2,000 (other) = $22,000

TRevPAB = $22,000 / 3,000 = $7.33 per available bed/night.

What affects your TRevPAB

• Total beds available for sale
• Total beds sold each night (occupancy)
• Products & services offered
• Pricing for beds and ancillaries
• Guest spend on amenities/activities
• Discounts, promotions, packages
• Guest mix (digital nomads, groups, etc.)
• Channel mix & related costs
• External factors (demand, economy, weather, disruptions)

Monitor these drivers and adjust strategy to protect and grow TRevPAB.

6 strategies to increase TRevPAB

1. Set TRevPAB objectives in your budget & ops plan.
2. Share goals with your team and tie incentives to outcomes.
3. Expand ancillaries and promote across channels & on property.
4. Review pricing against market/competitors; adjust as needed.
5. Optimize business mix toward segments with higher TRevPAB.
6. Optimize channel mix for higher TRevPAB & upsell potential.

A critical metric for hostelers

By analyzing and optimizing TRevPAB, hostelers ensure every aspect of operations contributes to the bottom line, driving sustainable growth in competitive markets.