Financial Indicators
MPI, RGI, ARI: the main indicators recognised internationally by the financial system.
MPI, RGI and ARI are three fundamental indices thanks to which it is possible to know the information underpinning any strategic decision regarding hotel management. All three indices can be calculated over different time periods and compared with different groups of competing hotels present in your target market.
If your property is performing well, the MPI RGI ARI values will be higher than 100. Conversely, if the values are below 100, it means your property is underperforming compared to the market or the competitive set group you are benchmarking against. If the index value is exactly 100, it means you are performing precisely the same as the average of your market or the group of hotels in your territory.
MPI (Market Penetration Index)
MPI – Market Penetration Index, The market penetration index is a value that measures your hotel's occupancy performance compared to the average occupancy of your competitors. It is calculated as your occupancy / the average occupancy of your competitors x 100
ARI (Average Rate Index)
ARI – Average Rate Index, Rate index. Indicate whether your rates are on average higher or lower than your competitors. This value is calculated as the ratio of your average rate compared to that of your competitors multiplied by 100. An ARI value below 100 means you are selling at rates lower than the reference market on average.
RGI (Revenue Generation Index)
RGI – Revenue Generation Index, Revenue Generation Index, indicates your positioning relative to the revenue generated for each room you have in your hotel. It is calculated as your revPAR / average revPAR of your competitors multiplied by 100.
