Revenue Management Glossary

Actual Market Share (AMS)

Definition

Actual Market Share (AMS) is a metric that tracks how much business your property is capturing (as a percentage) compared to the number of rooms sold by the hotels within your compset for the same time period.

It is also possible to calculate your AMS based on the total rooms sold by all properties in your destination, but this metric is less useful because it is comparing your performance to many properties that are not your direct competition, so there is no actionable data that can be gleaned from it.

How to use it

Monitoring your AMS is important because it allows you to see how your property is performing compared to your competition within your destination, which gives you valuable data about whether you are effectively maximising opportunities to convert bookings.

Formula

AMS is calculated by dividing your total rooms sold for the given period of time by the total rooms sold by the properties in your compset for the given period, and multiplying that number by 100 to establish a percentage.

Related Terms

Occupancy, ADR, RevPAR, Compset, Market Share, Revenue Management, Online Reputation Score
I use actual market share (AMS) to get a real-time picture of how my property’s financial success compares to my competition. When I see that my property has a low AMS, I know that I am either charging too much or my online reputation is low, resulting in less bookings – and so I will lower my rates and review my guest service standards to identify ways to improve the guest experience, and improve online reviews. A high AMS with high occupancy shows that I found the sweet spot between price and guest service, enabling me to secure a greater market share than my competition within the destination.

Tim Boersma

Tim Boersma
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