"My occupancy is 75%" means nothing on its own — if the market is at 90% it's poor, if it's at 55% it's excellent. Market share and fair share analysis lets you measure performance relative to your competitors, not in absolute terms. It's the compass that shows your real position in the market.
What is fair share?
Fair share is your room-capacity share within your competitor set (compset). If the compset has 1,000 rooms total and you have 100, your fair share is 10%. In other words, "all else equal," you'd expect to capture 10% of market demand.
What is market share?
Market share is the share you actually capture. Of the total room-nights (or revenue) the compset sells, how much is yours? If your fair share is 10% but your actual share is 14%, you're performing above your fair share.
The three core indices
These comparisons are measured with standard indices (100 = fair share, >100 = more than the market, <100 = less):
- MPI (Market Penetration Index): Occupancy comparison. MPI 110 → your occupancy is 10% above the compset.
- ARI (Average Rate Index): ADR comparison. ARI 95 → your rate is 5% below the market.
- RGI (Revenue Generation Index): RevPAR comparison — the most important. RGI above 100 means you take more than your fair share of revenue.
Read the three together: if MPI is high but ARI is low, you may be filling rooms too cheaply. The goal is to lift RGI (your RevPAR share).
How to interpret
- High MPI, low ARI: You're filling up, but cheap. Test rate increases gradually.
- Low MPI, high ARI: Your rate is high, occupancy low. Question value perception or demand.
- RGI > 100: You take more than your fair share — you're on the right track.
- RGI < 100: You're losing market share; find the cause (price, product, or visibility).
Meaningless without the right compset
All these indices depend on the right competitor set. The wrong compset (different segment/location) gives wrong answers. We cover compset selection and competitor rate tracking separately: how to track competitor hotel rates.
How to use it in practice
- Find weak dates: Where RGI dips, you're losing share; a price/demand action is needed.
- Protect strong dates: When RGI is high, there may be room to raise rates early.
- Look by segment: Maybe you're strong in corporate, weak in leisure — strategy varies by segment.
Mini glossary
- Compset: The competitor set you benchmark against.
- MPI: Occupancy index (vs market).
- ARI: ADR index (vs market).
- RGI: RevPAR index (vs market) — the most critical market-share indicator.
FINO.TR continuously tracks competitor rates and your market position, shows where you fall below your fair share, and helps you defend market share with pricing recommendations — while you always make the call.