Remove Market Penetration Remove Revenue Management Remove Sales
article thumbnail

Understanding ARI: A key metric in hotel management

Cloudbeds

Here’s the ARI formula to use: ARI = (Hotel ADR / Compset ADR) * 100 ARI is part of a set of three performance indicators that measure hotel revenue performance by comparing it to a competitive set. The other two indicators are MPI (market penetration index) and RGI (revenue generated index).

article thumbnail

Secrets to Boost Your Hotel’s Revenue: Pricing Strategies You Need to Know

eZee Absolute

Pricing Strategies to Optimize Your Hotel Revenue Value-based pricing Package pricing Captive product pricing Market-penetration pricing Psychological pricing Promotional pricing Dynamic Pricing to Ace Your Strategic Game Why Is It Important to Set Pricing Strategies? Note: This is how you make sales in your shoulder season.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Hotel KPIs: How should hotels be measuring success?

SiteMinder

For example, you might have set a goal of achieving 300 room night sales in the month of May. For example, you might set out to achieve a revenue lift of 10% year-on-year. There are many metrics that support revenue KPIs. It can be calculated by dividing your total revenue by your available rooms in a set period.

KPI
article thumbnail

Hotel metrics: How to measure performance in the hotel industry

SiteMinder

Average daily rate (ADR) measures the average revenue earned from each occupied room per day, shedding light on pricing strategies. Revenue per available room (RevPAR) combines the occupancy rate and ADR to give a comprehensive view of both room sales and revenue.