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  4. MPI: Market Penetration Index
  1. Home
  2. Choice Industry Acronyms
  3. MPI: Market Penetration Index

MPI: Market Penetration Index

  • Definition: A metric used to determine whether the property is achieving its fair share of occupancy as compared to a specific group of hotels. It is calculated by dividing the occupancy percentage of the hotel by the occupancy percentage of the competitive set (from a third-party provider such as STR).
  • Example: A result of less than 1.00 indicates you are under performing compared to the competition, and a result that is more than 1.00 indicates you are outperforming the competition.

References: https://welcome.expediagroup.com/en/resources/revenue-management-resources-tips-and-help/hotel-revenue-management-glossary-jargon-and-common-terms

Updated on August 17, 2021

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