The Average Rate Index (ARI) is a key figure used to calculate the average rate performance of a hotel and serves as a benchmark value. It compares the ADR achieved by a defined set of competitors (CompSet) with the ADR achieved by the hotel itself.
Calculation of the ARI:
ARI = (ADR of the hotel / ADR of the CompSet) * 100
ARI > 100: The hotel is performing appropriately compared to the comparison group.
ARI < 100: The hotel has a lower ADR performance within the market under consideration than the comparison group.