Hotels · Tool 03

MPI Calculator

Calculate your hotel's Market Penetration Index (MPI) to benchmark your occupancy performance against your direct competitors.

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Benchmark Performance

See how your occupancy stacks up against your direct competitors.

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Measure Market Share

Determine if you are winning or losing your fair share of the market.

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Refine Your Strategy

Make informed decisions to capture more demand and outperform your compset.

The calculator

Run the numbers

MPI Calculator

Your Hotel's Data

Market (Competitor Set) Data

Results

Enter values and click Calculate to see results

The theory

Understanding MPI.

The Market Penetration Index (MPI), also known as the Occupancy Index, measures your hotel's occupancy relative to the average occupancy of your competitor set. It's a key indicator of your performance in the market.

/ Formula

An MPI of 100 means you are capturing your fair share of the market. Above 100 means you are winning, and below 100 means you are losing market share to your competitors.

MPI = (Your Hotel's Occupancy % / Competitor Set's Occupancy %) x 100
Questions, answered

Frequently asked questions.

A competitor set is a group of hotels that you consider your direct competitors. These are typically hotels of a similar size, quality, price point, and geographical location. You use data from your compset as a benchmark for your own performance.
Market data is typically sourced from third-party providers like STR (Smith Travel Research), Amadeus, or other hotel benchmarking services. These companies aggregate anonymized data from participating hotels to provide market-level insights.
Generally, yes. A higher MPI means you are filling more of your rooms than your competitors. However, it should be analyzed alongside the ARI (Average Rate Index) and RGI (Revenue Generation Index). A very high MPI combined with a low ARI might mean your room rates are too low and you are sacrificing profit for volume.
Most hotels track their MPI on a daily, weekly, and monthly basis. This allows them to see trends, understand the impact of their strategies, and react quickly to changes in the market.
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