Market Penetration Index (MPI)

What is Market Penetration Index (MPI)?

The Market Penetration Index (MPI) is a performance metric used by hotels to compare their occupancy rate against the aggregate occupancy rate of their competitive set or the broader market. Essentially, MPI provides a ratio that indicates how well a hotel is capturing its fair share of the market. An MPI greater than 100 suggests a hotel is outperforming its competitors, whereas an MPI below 100 indicates it is capturing less than its expected market share. Understand more about Market Penetration Index (MPI)

Formula

(Hotel Occupancy % / Market Occupancy %) * 100​

Market Penetration Index (MPI) Calculator