Revenue Generation Index (RGI / RevPAR Index)
Revenue Generation Index (RGI), also called the RevPAR Index, measures whether a hotel generates its proportionate fair share of revenue compared to an established set of direct market competitors.
Why It Matters for Independent Operators
An RGI above 100 indicates that your property is capturing more than its fair share of market revenue; an RGI below 100 signals underperformance relative to immediate competitors.
Practical Scenario & Calculation
[Illustrative Scenario] Your hotel achieves a RevPAR of ₹4,200 while your direct competitive set averages ₹3,500. RGI = (₹4,200 / ₹3,500) × 100 = 120 (capturing 20% more revenue than the market fair share).
How Operators Can Apply This Concept
Decompose RGI into MPI (occupancy fair share) and ARI (rate fair share) to identify whether market lead is driven by pricing power or high occupancy.
Common Misunderstanding to Avoid
Achieving an RGI of 120 through heavy OTA commissions can yield less net cash flow than an RGI of 105 achieved via high direct-booking contribution.
RevPAR Benchmark Calculator
Calculate your property RevPAR in INR or AED and compare it with a manually entered illustrative target. This is not a verified regional market average.
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