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Revenue Management Woordenlijst

Inkomstengeneratie-index (RGI, RevPAR-index)

Definitie

The Revenue Generation Index (also known as the RGI and/or RevPAR Index) is a metric that evaluates how a hotel’s RevPAR (revenue per available room) is performing compared to its competitive set (compset – the property’s direct competitors in the destination). This metric is particularly helpful for hotels to effectively gauge their ability to be competitive and sustain market share within the destination.

Hoe te gebruiken

If the hotel's RGI is more than 1 (or 100%), the hotel is outperforming its competitors, earning more of the local market share; generally, that also means that their revenue management and marketing strategies are being effective at making them stand out from the competition.

If a hotel's RGI is 1 (equal to their competitors'), the hotel is neither over- or under-performing, compared to its competitors.

If a hotel's RGI is less than 1, the hotel is underperforming compared to its competition, necessitating an update to their revenue management and marketing strategies to differentiate their property, boost occupancy and maximise RevPAR.

Formule

To calculate a property’s RGI, divide the property’s RevPAR (during a specific period of time) by their compset’s RevPAR during the same time period:

RGI=Hotel’s RevPAR / Compset’s RevPAR

Verwante termen

RevPAR (Revenue per Available Room), ADR, Occupancy, Revenue Management Metrics, Revenue Management, Revenue Manager, TRevPAR, RevPOR, GOPPAR, Competitive Set, Compset
Most hoteliers know that they should be using ADR, occupancy and RevPAR metrics to measure their property’s revenue performance but, to be most effective, they should also be monitoring their RGI. By monitoring both RevPAR and RGI (along with ADR and occupancy), revenue managers gain a more comprehensive view of the property’s revenue performance, both on its own and in relation to its competitors, which enables them to optimise the property’s revenue growth in the short-term and their overall market share in the long-term.

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