Maybe you’ve heard us talk about RevPASS, maybe you haven’t, but either way, let’s review what this metric is and why we care about it in the first place.
Here is the technical definition of RevPASS:
RevPASS = Revenue / (Uphill Capacity * Days in Range)
Let’s define each piece of the equation:
Revenue: The amount you earned.
Uphill Capacity: The total capacity of your resort’s ski lifts. This measures your resort’s relative size.
Days in Range: The number of operating or order days. This allows us to compare normalized performance for a week, month, or season’s worth of bookings.
Alright, what does this actually mean? Let’s look at a specific example.
If over the past 7 ski days, your ski area earned $100,000, and your ski area has an uphill capacity of 5,000, your RevPASS calculation for those 7 days would be:
RevPASS = $100,000 / (5,000 * 7) = $2.86
RevPASS allows us to understand revenue performance normalized for the size of resort (where size is measured by Uphill Capacity) and the number of days of operation (in this case, 7).
For example, if a second resort earned $100,000 over 7 days and has an uphill capacity of 3,000, its RevPASS would be
RevPASS = $100,000 / (3,000 * 7) = $4.76
The second resort performed better, as measured by RevPASS, since they earned more revenue relative to their size over the same number of days.
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