RevPAR Index (RPI) is a performance metric used in the hospitality industry to evaluate the relative performance of a hotel compared to its competitors in the market. It measures a hotel's Revenue Per Available Room (RevPAR) against the average RevPAR of a defined competitive set or market. The RPI indicates whether a hotel is outperforming, underperforming, or on par with its competitors in terms of revenue generation. A value above 100 suggests that the hotel is capturing a higher share of revenue compared to its competitors, while a value below 100 indicates the opposite. RPI provides valuable insights for hoteliers to assess their market positioning and make informed revenue management decisions.
What is RevPAR Index (RPI)?
RevPAR Index (RPI) is a performance metric used in the hospitality industry to compare a hotel's Revenue Per Available Room (RevPAR) with that of its competitors in the market.
How is RevPAR Index calculated?
RevPAR Index is calculated by dividing a hotel's RevPAR by the average RevPAR of its competitive set or market and multiplying the result by 100 to obtain a percentage value.