Performance Management & Reporting
RGI, MPI, ARI: The Three Numbers That Tell You If You're Winning or Just Participating
Occupancy of 78% sounds strong until your comp set is running at 89%. Market share metrics strip away the headline numbers and show you where you actually stand.
4 min read
Revenue Generation Index (RGI), Market Penetration Index (MPI), and Average Rate Index (ARI) are the three core market share metrics that measure your hotel's performance relative to a defined competitive set. RGI measures whether you're generating more or less RevPAR than your fair share. MPI does the same for occupancy.
ARI for average rate. A hotel with an RGI above 100 is outperforming its comp set. Below 100, it's underperforming — regardless of how good the absolute numbers look.
These metrics require access to STR or equivalent competitive benchmarking data, combined with your own actuals. Most hotels get this data monthly, at best. The revenue managers who act on it fastest have it more frequently.