Hotel Experiences Drive Major RevPAR Gains

Hotels that prioritize guest experiences see significantly higher revenue per available room (RevPAR), according to new research from Turneo, a travel tech platform helping properties organize in-destination activities. The company, recognized as a PhocusWire Hot 25 Travel Startup for 2024, analyzed data from 136,600 properties across 122 hotel groups representing 12.2 million rooms and €131 billion in revenue.

The findings reveal that a hotel with a high experience focus—defined as around 30% of guests booking local activities—can achieve a 55% lift in RevPAR. This strategy not only boosts revenue but also improves guest satisfaction metrics, such as lower cancellation rates, higher in-stay spending, better reviews, and stronger rebooking rates. The data suggests that experiences are more than just add-ons—they can be core to a hotel’s financial performance.

Turneo developed a 15-point Experience Index to quantify a hotel’s experience focus. This index evaluates how brands feature experiences in messaging, the uniqueness of offerings, integration with local culture, personalization options, and the role of experiences in the brand identity. Hotels scoring between 10 and 15 on the index were considered highly focused, and these properties saw a 262% higher average RevPAR than those with low scores and a 104% increase over hotels with medium focus.

On average, each additional point on the Experience Index corresponded with an annual RevPAR gain of €2,564. The report underscores the financial value of offering personalized, culturally embedded experiences as a core hospitality strategy.

Tags: phocuswire, SyndicEx250629B

Hotel Experiences Drive Major RevPAR Gains

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