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Hotel metrics: How to measure performance in the hotel industry

SiteMinder

Cost per acquisition (CPA) helps in understanding the cost involved in acquiring a customer, essential for budgeting and marketing strategies. Distribution channel performance is vital to know which channels (like OTAs, direct bookings) are most profitable. This is calculated by: your occupancy rate / market occupancy rate x 100.

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Hotel rate management: Best software to use

SiteMinder

There’s no single KPI that perfectly describes how effective your rate management is. Market penetration index (MPI), average rate index (ARI), and revenue generation index (RGI) : These are comparative metrics used to assess a hotel’s performance against its competitive set or the broader market.