Hotel Metrics Series · RevParGenius Intelligence · Hotel Revenue Management 2026
RevPAR tells you how the property is doing in absolute terms. MPI and RGI tell you how it is doing relative to the competitive set it is actually competing against — which is the only comparison that matters for pricing decisions.
MPI and RGI — Formulas and What Each Measures
What MPI and RGI Tell You That RevPAR Cannot
A property can have rising RevPAR and a falling RGI simultaneously. This happens when the entire market is improving but the property is improving more slowly than its competitors — capturing less of the demand uplift than its fair share. Without RGI, the improving RevPAR looks like success. With RGI, the same data reveals that competitors are taking market share.
The same logic applies to MPI and occupancy. A property at 78% occupancy may feel well-occupied. If the competitive set is averaging 88% occupancy for the same period, an MPI of 88.6 reveals that the property is underperforming on demand capture — likely because it is priced too high relative to the comp set, or is not visible enough in search results to be booking at the rate the market demand would support.
High MPI, Low RGI: High occupancy, low rate — the property is filling rooms but underpricing. Rate needs to move up. Low MPI, High RGI: Lower occupancy, higher rate — the property may be overpriced and losing bookings to competitors. Rate may need to soften to recover demand share. Both above 100: The property is outperforming on both occupancy and revenue — dynamic pricing is working correctly.
RevParGenius Take
MPI and RGI are the scoreboard. RevPAR is just the raw number. You cannot know whether your dynamic pricing is working without comparing your performance to the competitive set you are actually competing against.
Hotels that use AI-driven dynamic pricing consistently report MPI and RGI above 100 — not because the software guarantees it, but because the frequency and accuracy of rate adjustments keeps the property competitively positioned across more days of the year than manual or rules-based approaches can achieve.
Free Market Analysis — See How You Compare
Know Where You Stand Against Your Comp Set.
RevParGenius provides live OTA comp set pricing data for APAC hotel markets. Request a free analysis and see exactly how your rates compare to your direct competitors.
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RevParGenius is an independent hotel market intelligence platform. Dynamic pricing automation referenced in this article is provided by RoomPriceGenie — not affiliated with any OTA or hotel chain.
