Question 1

What does an RGI of 100 mean?

Accepted Answer

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.

Question 2

What is a good RGI?

Accepted Answer

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.

Question 3

How do I find my competitor set's RevPAR?

Accepted Answer

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.

Question 4

What should be in my 'comp set'?

Accepted Answer

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.

Question 5

My RGI is low. What should I do?

Accepted Answer

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.

Revenue Generating Index (RGI) Calculator

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Understanding RGI

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