Your Market Penetration Index (MPI) is a unit of measurement used to show the how your hotel’s occupancy compare to a preselected set of competitors. This is particularly helpful in showing how your business is doing in relation to your competition and the market in general.
MPI = Your occupancy rate ÷ your comp set’s occupancy rate
A great tool to be using when considering your pricing (when in relation to occupancy rate) against that of your competition. By calculating your MPI you are able to place yourself among the competition and make competitor-based pricing decisions from there.
See also:
