Hotel Revenue Glossary · Benchmarking

MPI (Market Penetration Index)

Your hotel's occupancy divided by the comp set's average occupancy, times 100. MPI shows whether you're capturing more or less than your fair share of room demand in the market.

Why it matters: MPI above 100 means you're winning the volume game. Below 100 means competitors are capturing guests you could be getting. It helps diagnose whether your challenge is demand generation or pricing.

Worked example: Count it in rooms, not just index points. Your 120 rooms at 80% is 96 sold; the five hotels in your comp set have 600 rooms between them at 74%, so they sold 444. MPI is 80 / 74 x 100 = 108.1. On a combined 720-room base, 540 sold makes a 75% market, and an even share of that would have been 90 rooms. You took 96 - six rooms a night, 2,190 across a year.

Common mistake: Celebrating MPI above 100 while ARI sits at 88. Any hotel can buy occupancy - take A$40 off BAR and MPI climbs by morning. Read the pair together: MPI 108 with ARI 88 lands RGI near 95, which says you are working harder than the comp set for less revenue per available room.

All glossary terms ARI (Average Rate Index) RGI (Revenue Generation Index) Comp Set (Competitive Set)