Like RevPAR, RPI (also known as Revenue Generating Index) is easy to comprehend and calculate. It’s usually expressed as a percentage, so a property with a RevPAR Index of 102 means its RevPAR is two percentage points higher than the hotels in its competitive set; 98 and it’s two points lower than its competitors. A key component of RevPAR Index is the competitive set. Focusing on RevPAR growth in a silo without the context of a competitive set or market benchmark provides an incomplete view of a hotel’s performance. The competitive set needs to be those hotels that line up as closely as possible in terms of facilities, age, size, market segment, customer base, brand affiliation and rate. If a hotel measures itself against the average of the entire market—hotels of all sizes, segments and rates—it risks commoditizing the asset to be literally average to the market and discounts its ability to create a market-leading hotel. Get the full story at Duetto