Revenue Management Glossary

Revenue Market Share

Definition

Revenue Market Share (RMS) refers to the percentage of total market revenue that a specific hotel generates, compared to the overall revenue of its competitive set or market. This metric helps hoteliers assess their performance relative to competitors and understand their market position.

How to use it

Hoteliers use RMS to benchmark their performance against the competition, identifying if they are securing their fair share of market revenue and adjusting strategies accordingly.

Formula

Revenue Market Share = (Your Hotel’s Revenue ÷ Total Market Revenue) × 100

Related Terms

Market Share, RevPAR (Revenue per Available Room), Competitive Set, Total Market Revenue, Pricing Strategy, Yield Management
“Revenue Market Share reveals your hotel’s position in the marketplace, guiding smarter decisions to boost your competitive edge and drive profitability.”

Tim Boersma

Tim Boersma
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