Hotel Revenue Glossary · Benchmarking

Index Movement

The change in a competitive index (MPI, ARI, or RGI) over a specific time period, typically month-over-month or year-over-year. Positive index movement means you are gaining market share; negative movement means competitors are outperforming you.

Why it matters: Index movement shows relative change against a defined comparison set. Validate source, set, period, revisions, product, mix, price, and occupancy drivers before assigning strategy credit or setting review urgency.

Worked example: Your RevPAR is A$160 in both March and April, to the dollar. The comp set does A$155 in March and A$146 in April. Your RGI goes 160 / 155 x 100 = 103.2 to 160 / 146 x 100 = 109.6 — up 6.4 points in a month where you changed nothing at all. Before you write that movement up as a strategy win, decompose the denominator: a competitor closed 40 rooms, ran a refurbishment, or simply had a bad Easter.

Common mistake: Reacting to month-over-month index movement across a calendar boundary. March to April in Australia can move Easter, school holidays and a public-holiday weekend all at once, so the movement measures the calendar rather than your position. Compare like periods — same month last year, or a rolling twelve — before you act on the delta.

All glossary terms RGI (Revenue Generation Index) Trend Report Competitive Index