Which metric is likely to rise if check average increases?

When considering the relationship between check average and the potential rise of specific metrics in a business context, particularly in the hospitality industry, understanding how each metric functions is crucial.

TrevPAR, or Total Revenue Per Available Room, is a comprehensive metric that reflects all revenue generated per room available, including not just room revenue but also revenue from food and beverage, ancillary services, and other income sources. When the check average increases, it indicates that guests are spending more per visit at dining establishments. This additional spending can lead to an increase in overall revenue for the hotel or restaurant, contributing positively to TrevPAR.

This metric is particularly insightful because it captures the overall performance of a property and how effectively it utilizes its available inventory to generate income. An incremental boost in dining revenue through a higher check average undoubtedly enhances TrevPAR as it aggregates all revenue streams tied to available rooms.

In contrast, while metrics like ADR (Average Daily Rate) also track revenue but are specifically related to room income and occupancy rates highlight how effectively rooms are filled, they do not capture the broader revenue implications of increased guest spending in non-room areas. Room revenue is focused on income from room sales alone and may not reflect increased overall revenue if the rise in check average does not correlate directly