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RevEvolve

Market Penetration Index - MPI

Your occupancy as a share of the comp set's occupancy, indexed to 100. Above 100 = winning your fair share.

FormulaMPI = (Your Occupancy ÷ Comp Set Occupancy) × 100

What it means in plain language

MPI of 100 means you captured your fair share of demand. 110 means you outperformed; 90 means you lost share. MPI alone doesn't tell you why - you can win MPI by undercutting (low ADR) or by being preferred at parity. Always read with ARI (rate index) and RGI (yield index).

How Market Penetration Index fits in the bigger picture

Market Penetration Index doesn't live alone - it sits inside the Metrics & KPIs category and connects to 3 closely related concepts most working revenue managers track in the same breath. Pair this definition with the related terms below to build a working mental model - definitions in isolation are easy to memorize and easy to misuse.

Related terms you should also know

Each of these is one click away - start with whichever you don't already use daily:

More from Metrics & KPIs

Step 2 - Run the numbers

Now that you know what Market Penetration Index means - let RM Copilot tell you why yours dropped this week.

Same definition, but Copilot does the math, the segment analysis, and the rate recommendation - and explains the move in plain language.