What is revenue generated index?

What is revenue generated index?

Revenue Generation Index (RGI) is a means of measuring your hotels performance and occupancy rate against that of your market competitors. Generally speaking, it ensure you’re receiving a good share of the market revenue in relation to your competitors. RGI = Your RevPAR ÷ Your competitors RevPar.

How is RGI calculated in hotels?

RGI = 1 The hotel RevPar is equal to the average RevPar of their comp set. RGI > 1 The hotel RevPar is higher than the average RevPar of their comp set. RGI < 1 The hotel RevPar is less than the average RevPar of their comp set.

How do you calculate RevPar?

To calculate your RevPAR, simply multiply your average daily rate (ADR) by your occupancy rate. Say you have an occupancy of 80%, and an ADR of €100 – your RevPAR will be €80. Alternatively, you can divide the number of available rooms in your property by total revenue from that night (or specified time period).

What is RGI revenue management?

Revenue Generating Index (RGI) or RevPAR Index (RPI) – A metric used to determine whether a property is achieving its fair share of revenue compared to a specific group of hotels (i.e. a competitive set).

What is a good RevPAR index?

100
The RevPAR Index, or revenue generating index (RGI) should be 100. This indicates your hotel is getting the expected, or fair, market share amongst the particular group of hotels.

Which is more important ADR or RevPAR?

RevPAR is generally considered the more important metric because it takes into consideration both daily rates and daily occupancy. For example, if ADR is rising but occupancy is falling, hotels may earn a lot from each room but make fewer profits overall.

What does RevPar index mean?

RevPar Index, is a measure that originates from RevPar. It focusses on comparing your hotels RevPar with the RevPar of the hotels in your competitive set. The RevPar Index is able to show you what your variance is relative to your competitors and what the gap itself is worth.

What is Ari MPI RGI?

MPI – Market Penetration Index (your occupancy results versus the average occupancy of your competitors) ARI – Average Rate Index (your ARR versus the average ARR of your competitors) RGI – Revenue Generator Index (your revenue share of the market, the market being your hotel and the hotel competitors).

Why do we calculate RevPAR?

RevPAR meaning and formula – RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. RevPAR is important because it helps hoteliers measure the overall success of their hotel.

What is a good RevPAR number?

It is also known as the fair share. If your property’s RevPAR index is less than 100, it means your fair share is less than market average. While, if RevPAR index is more than 100, your property’s share is better than your compset.

Which is more important ADR or RevPar?

Should RevPAR be high or low?

An increase in a property’s RevPAR means that its average room rate or its occupancy rate is improving. However, an increase in RevPAR does not necessarily mean better performance. RevPAR fails to consider the size of a hotel. Therefore, RevPAR alone is not a good measure of overall performance.

What is RGI (Revenue generation index)?

Revenue Generation Index (RGI, RevPAR Index) Revenue Generation Index (RGI) is a means of measuring your hotels performance and occupancy rate against that of your market competitors. Generally speaking, it ensure you’re receiving a good share of the market revenue in relation to your competitors. RGI = Your RevPAR ÷ Your competitors RevPar

What is RGI and how is it used?

RGI stands for: Revenue Generation Index. RGI compares your hotel’s RevPar to the average RevPar in the market. It is used to determine if a hotel is gaining a fair share of revenue compared to its compset.

How do you calculate RGI in hotel management?

To calculate RGI: (Subject hotel RevPAR / Aggregated group of hotels’ RevPAR) x 100 = RevPAR Index For example, if the subject hotel’s RevPAR is $50, and the RevPAR of its competitive set is $50, the subject hotel’s RGI is a total of 100.

What is the difference between RGI and index in RevPAR?

If the subject hotel’s RevPAR totals $60, its index is 120, indicating the hotel has captured more than its expected share. If the subject hotel’s RevPAR totals $40, its RGI is 80, indicating the hotel has captured less than its expected share.