Hotels · Tool 12
Revenue Generating Index (RGI) Calculator
Measure your hotel's RevPAR performance against your direct competitors.
/ 01
Competitive Benchmarking
Directly compare your revenue performance against your market competitors.
/ 02
Assess Market Position
Understand if you are leading, keeping pace with, or lagging behind the market.
/ 03
Validate Strategy
Use RGI to validate the success of your pricing and marketing strategies.
The calculator
Run the numbers
RGI Calculator
Results
Enter values and click Calculate to see results
The theory
Understanding RGI.
The Revenue Generating Index (RGI), also known as RevPAR Index, measures your hotel's RevPAR performance in relation to a defined set of competitors (comp set).
/ Formula
An RGI of 100 indicates fair share of market revenue; above 100 means outperformance.
(Your Hotel's RevPAR / Competitor Set's RevPAR) x 100
Questions, answered
Frequently asked questions.
An RGI of 100 means you have captured your 'fair share' of the market's room revenue. Your RevPAR is exactly the average of your competitive set.
A good RGI is anything over 100, which indicates you are capturing more than your fair share of the market. An RGI below 100 suggests that your competitors are outperforming you.
This data is typically sourced from third-party hotel benchmarking services like STR (Smith Travel Research). Hotels in a market subscribe to these services and anonymously submit their performance data, which is then aggregated to provide comp set averages.
Your competitive set should consist of 5-10 hotels that are your most direct competitors. They should be similar in terms of location, service level, target audience, amenities, and price point.
A low RGI means your RevPAR is lower than your competitors. You need to diagnose why. Is your occupancy lower? If so, review your marketing and distribution. Is your ADR lower? If so, review your pricing strategy. Analyze both your Occupancy Index (MPI) and your ADR Index (ARI) to pinpoint the weakness.
Free consultation
Need help optimizing your hospitality business?
I help businesses grow through smarter SEO — let's chat, free of charge.
Get free SEO consultationNo pitch deck. No upsell. A 30-minute call about your numbers.