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Revenue Management Woordenlijst

Market Penetration Index (MPI, OCC Index)


The Market Penetration Index (MPI), also known as the Occupancy Index (OCC Index), is a metric that is used to compare a property’s occupancy rate to that of their compset (or average market occupancy). This is useful for hoteliers to understand if their revevnue management and marketing strategies are effective at attracting guests compared to their competition. It can also be useful for benchmarking their performance over time to ensure they are competitive in the long-term.

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The MPI, used in conjunction with ADR and RevPAR, provide hoteliers with a detailed picture of how well a hotel is doing in filling its rooms, but also in generating revenue and managing its pricing strategy compared to the competition.


A property’s Market Penetration Index is calculated by dividing the property’s occupancy rate during a given time period, by the occupancy rate of the compset (or average marketing compset), and multiplying that number by 100 to obtain a percentage value.

Verwante termen

ADR, RevPAR, Occupancy, Compset, Occupancy Index (OCC Index), Hotel Market Share, Fair Market Share (FMS), Average Rate Index (ARI and/or ADR Index), Actual Market Share (AMS)
I use the market penetration index in my revenue management strategy to ensure that my revenue management and marketing strategies are supporting my revenue goals. If my property’s MPI is above 100%, that means my hotel is capturing more market share than the competition and suggests that my current marketing and pricing strategies are effective. If my property’s MPI is 99% or below, it shows that we are not capturing as much market share as the competition so it suggests that we need to update our marketing and pricing strategy accordingly to become more competitive.

Sarah Kock

Sarah Kock