1. The Average Rate Index The first index I would like to look at is the simplest to understand and calculate: The Average Rate Index or (ARI). The idea is to convert your average achieved rate into an index (out of 100) compared to the average rate that your competitors have achieved. The value of this is it standardizes your comparison across an estate of hotels and puts your performance in the context of the competitive set; rather than on the basis of the actual number. To get to an index you calculate your ADR divided by the average consolidated market ADR. Let’s look at January 2014 in this example below. My ADR for this property is 57,64 while the competitor set has on average achieved 88 EUR in January. 57,64 divided by 88,00 multiplied by 100, gives us an index of 65,5. So in other words we are only achieving 65,5% of the rate that the competitors are achieving. Get the full story at SnapShot