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Market Indexes and Share KPIs

PM Nights Available Share - Shows the percentage of total available nights contributed by your managed properties relative to the combined inventory of your properties and the market.

Formula:
PM Nights Available ÷ (PM Nights Available + Market Nights Available)

Why it's useful:
  • Measures your portfolio's share of total available inventory.
  • Provides context for market presence and scale.
  • Helps explain whether changes in performance are influenced by portfolio growth or market-wide inventory changes.
Market Nights Available Share - Shows the percentage of total available nights represented by the market inventory relative to the combined inventory of your properties and the market.

Formula:
Market Nights Available ÷ (PM Nights Available + Market Nights Available)

Why it's useful:
  • Provides context on the size of the competitive market.
  • Helps assess your relative inventory position.
  • Useful for understanding inventory distribution across the market.

PM Guest Nights Share - Shows your share of total guest nights booked compared to the combined guest nights booked across your properties and the market.

Formula:
PM Guest Nights ÷ (PM Guest Nights + Market Guest Nights)

Why it's useful:
  • Measures your share of overall guest demand.
  • Helps evaluate how effectively your portfolio attracts guests.
  • Useful for tracking market penetration and demand growth over time.
Market Guest Nights Share - Shows the market's share of total guest nights booked across all available inventory.

Formula:
Market Guest Nights ÷ (PM Guest Nights + Market Guest Nights)

Why it's useful:
  • Provides context for demand distribution across the market.
  • Helps benchmark your portfolio's demand capture against competitors.
  • Useful for identifying opportunities to gain market share.
Occupancy Index (MPI – Market Penetration Index) - Measures how your occupancy compares to the market average.

Formula:
(PM Occupancy % ÷ Market Occupancy %) × 100

Interpretation:
  • Above 100 = You are outperforming the market.
  • Below 100 = You are underperforming the market.
  • Equal to 100 = You are performing in line with the market.
Why it's useful:
  • Shows how effectively you are converting available nights into booked nights compared to competitors.
  • Measures your ability to capture demand relative to the market.
  • Helps identify strengths or weaknesses in booking performance.

ADR Index (ARI – Average Rate Index) - Measures how your Average Daily Rate (ADR) compares to the market average.

Formula:
(PM ADR ÷ Market ADR) × 100

Interpretation:
  • Above 100 = Your ADR is higher than the market.
  • Below 100 = Your ADR is lower than the market.
  • Equal to 100 = Your ADR matches the market average.
Why it's useful:
  • Evaluates pricing strength relative to competitors.
  • Helps determine whether guests are willing to pay a premium for your properties.
  • Measures the effectiveness of your pricing strategy.

RevPAR Index (RGI – Revenue Generation Index) - Measures how your RevPAR (Revenue per Available Rental Night) compares to the market average.

Formula:
(PM RevPAR ÷ Market RevPAR) × 100

Interpretation:
  • Above 100 = You are generating more revenue per available night than the market.
  • Below 100 = You are generating less revenue per available night than the market.
  • Equal to 100 = You are performing in line with the market.
Why it's useful:
  • Combines occupancy and ADR performance into a single metric.
  • Measures overall revenue competitiveness.
  • Helps determine whether your revenue strategy is outperforming the market.

Why These KPIs Matter

Together, these KPIs provide a complete view of market performance:
  • Inventory Share → PM Nights Available Share, Market Nights Available Share
  • Demand Share → PM Guest Nights Share, Market Guest Nights Share
  • Occupancy Performance → Occupancy Index (MPI)
  • Pricing Performance → ADR Index (ARI)
  • Revenue Performance → RevPAR Index (RGI)
Used together, they help answer four critical questions:
  1. How much inventory do I control relative to the market?
  2. How much guest demand am I capturing?
  3. Am I pricing above or below the market?
  4. Am I generating more revenue than my competitors?
This combination of metrics provides a comprehensive view of market presence, demand capture, pricing power, and revenue performance relative to the competitive market.