Remove Forecasting Remove KPI Remove Market Penetration
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Hotel RevPAR Formula: Measure Performance in 2025

Hotelogix

This figure becomes the foundation for performance analysis and forecasting. Market Penetration Index (MPI) MPI compares your property’s occupancy to your competitive set. It reveals how well you are performing in terms of capturing demand in your market segment.  

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Hotel metrics: How to measure performance in the hotel industry

SiteMinder

It offers insights into room demand and helps in forecasting. MPI – Market penetration index is a way to directly compare yourself with your competitors. This is calculated by: your occupancy rate / market occupancy rate x 100.

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Hotel rate management: Best software to use

SiteMinder

It pays to obsess over long-range weather forecasts too. There’s no single KPI that perfectly describes how effective your rate management is. If it’s a quiet time you can lower your rates to coax more guests in. If it’s the height of your busy season and hotels locally are becoming booked up, you can afford to charge your guests more.