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)
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.
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:
- How much inventory do I control relative to the market?
- How much guest demand am I capturing?
- Am I pricing above or below the market?
- 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.