Back to Boutique Hotels Tools
Boutique Hotels · Tool 01

ADR & Occupancy Index vs. Comp Set

Benchmark your hotel's performance against your direct competitors. This tool calculates your Average Rate Index (ARI), Market Penetration Index (MPI), and Revenue Generation Index (RGI) to reveal your market position.

/ 01

Gauge Pricing Strategy

See if your rates are higher or lower than your competitors' and by how much.

/ 02

Assess Market Share

Understand if you are capturing your fair share of guest demand in the market.

/ 03

Drive Revenue Strategy

Make informed decisions on rates and marketing to optimize your total revenue.

The calculator

Run the numbers

Market Index Calculator
Results

Enter values and click Calculate to see results

The theory

Understanding Your Market Position.

Knowing your own ADR and Occupancy Rate is only half the story. To truly understand your performance, you must compare it to your competitive set (comp set) - a group of other hotels that you compete with directly for guests.

/ Formula

Average Rate Index (ARI): (Your ADR / Comp Set ADR) x 100. Measures your pricing performance. An ARI greater than 100 means your average rate is higher than your comp set's.

Market Penetration Index (MPI): (Your Occupancy / Comp Set Occupancy) x 100. Measures your occupancy performance. An MPI greater than 100 means you are capturing more than your fair share of the market's demand.

Revenue Generation Index (RGI): (Your RevPAR / Comp Set RevPAR) x 100, or simply (ARI x MPI) / 100. This is the ultimate benchmark, combining both rate and occupancy performance. An RGI above 100 indicates you are outperforming your market.

Questions, answered

Frequently asked questions.

A competitive set is a group of 4-6 hotels that are your most direct competitors. They should be similar in terms of location, price point, service level, and target guest. For a boutique hotel, this might include other boutique hotels, but also lifestyle brands or high-end independent hotels in your immediate area.
This data is typically sourced from specialized hotel benchmarking services like STR (Smith Travel Research), Amadeus, or CoStar. These services aggregate anonymized data from participating hotels. Subscribing to one of these services is a standard practice in the hotel industry.
Not necessarily. A very high ARI might mean your rates are too high, causing you to lose potential guests to your competitors (which would be reflected in a low MPI). The goal is to find the sweet spot where you maximize both rate and occupancy, leading to the highest possible RevPAR Index (RGI).
An RGI below 100 means you're not getting your fair share of the revenue in the market. First, look at your ARI and MPI. Is your rate too low (low ARI)? Or are you not filling enough rooms (low MPI)? The answer will tell you whether to focus on your pricing strategy or your sales and marketing efforts.
Most hotel revenue managers review these numbers on a weekly basis to make short-term pricing and marketing decisions. It's also crucial to look at monthly and yearly trends to understand your long-term strategic position in the market.
Free consultation

Need help optimizing your hospitality business?

I help businesses grow through smarter SEO — let's chat, free of charge.

Get free SEO consultation

No pitch deck. No upsell. A 30-minute call about your numbers.