The Market Penetration Index (MPI) is a key figure used to calculate the market penetration of a hotel and serves as a benchmark value. It compares the occupancy rate of a defined set of competitors (CompSet) with the occupancy rate of the hotel itself. The MPI indicates the occupancy performance of the hotel itself in comparison to the defined market or location.
Calculation of the MPI:
MPI = (hotel occupancy rate / CompSet occupancy rate) * 100
MPI > 100: The hotel is performing appropriately compared to the comparison group.
MPI < 100: The hotel has a smaller share of the market in question than the comparison group.