Why RevPAS is your most important KPI

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Speaking with sports marketing professionals all over the world about their day-to-day, and how they perform their job, we often get to the issue of self-measurement.

How can they tell if they are doing a good job or not?

When discussing the issue of stadium sales, the most common practice is to look at the bottom line. As clubs become more and more financially driven, it is usually presented in the form of total revenue.

Naturally, total revenue is a very important KPI, as it focuses on the end goal for the marketing people – making money for their club.

Why isn’t this enough?

Being able to track our performance consistently, and compare the outcomes of different scenarios and actions, is the whole point of performance measurement.

Therefore, we should be careful and make sure that we compare apples to apples.

While focusing on total revenue, clubs usually miss out on the nuances between the compared objects.

For example, when comparing total revenue along an entire season, keep in mind that teams play a different number of games per season, depending on their performance in knock-out competitions. We can expect to see higher total revenues in a season with 28 home games, compared to one with only 22.

When comparing different games, consider the several factors affecting seat availability – police requirements, away-fans allocation, the number of mini plans sold, or how many season ticket holders released their ticket for resale – all resulting in a different quantity of available tickets for sale. Just like in the previous example, a game with 25,000 tickets for sale would probably generate higher total revenue than a game with only 18,000.

OK, so we need to use some form of average. We’ve seen many clubs resorting to Average Revenue Per Fan (ARPF or RevFan), which is a great indicator of how much you get fans to spend on your team. Again, a very important factor, but usually determined mostly by your price point, as it only reflects the sales that were actually made.

For example, we may have one match with a RevFan of €60 and another with €75, but this KPI will not tell us that there were 500 fans that spent €60, and only 150 that paid €75. We may erroneously believe that we’re better off with €75, when in fact, the €60 resulted in higher total revenue.

There is, however, one KPI that tells us a more complete story.

RevPAS stands for Revenue Per Available Seat. It is a performance indicator measuring the financial exploitation of the most basic real-estate unit in a stadium – the seat – answering the question of how much money we are generating from each seat in the stadium? This way, you can combine both revenue and capacity utilization into one, single KPI.

Go ahead, try and see your actual RevPAS: