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Understanding ARI: A key metric in hotel management

Cloudbeds

Here’s the ARI formula to use: ARI = (Hotel ADR / Compset ADR) * 100 ARI is part of a set of three performance indicators that measure hotel revenue performance by comparing it to a competitive set. The other two indicators are MPI (market penetration index) and RGI (revenue generated index).

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Hotel metrics: How to measure performance in the hotel industry

SiteMinder

It offers insights into room demand and helps in forecasting. Average daily rate (ADR) measures the average revenue earned from each occupied room per day, shedding light on pricing strategies. Revenue per available room (RevPAR) combines the occupancy rate and ADR to give a comprehensive view of both room sales and revenue.

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Hotel rate management: Best software to use

SiteMinder

It pays to obsess over long-range weather forecasts too. A longer LOS can be an indicator of effective rate management strategies, such as offering discounts for extended stays. If it’s a quiet time you can lower your rates to coax more guests in.