Hotel Revenue Glossary · Benchmarking

ARI (Average Rate Index)

Your hotel's ADR divided by the comp set's average ADR, times 100. ARI shows whether you're commanding higher or lower rates than competitors.

Why it matters: ARI above 100 means your guests pay more than those at competing hotels. Below 100 means you're discounting relative to the market. Combined with MPI, it reveals your competitive strategy (rate-driven vs. volume-driven).

All glossary terms MPI (Market Penetration Index) RGI (Revenue Generation Index) ADR (Average Daily Rate)