Compare the guest’s alternatives
Which properties would your guest genuinely consider instead? Review location, positioning, services, room types and travel purpose. A nearby resort can be a poor benchmark for a city business hotel.
Do not select for a flattering result
A set of cheaper or weaker properties may produce comfortable but unhelpful comparisons. Define selection criteria before looking at performance. Review the set when a new competitor opens or your own product changes.
Read the indexes together
MPI compares occupancy, ARI compares rate and RGI compares RevPAR. MPI of 110 and ARI of 90 imply RGI of 99 on a consistent calculation basis. Higher volume has not fully offset the rate difference. An index of 100 means parity, not a universal business target.
Check data sufficiency
Set composition and aggregation rules influence conclusions. Use consistent periods and methods. Where benchmarking data is unavailable, published prices can inform positioning but cannot replace achieved ADR or occupancy.
List potential competitors and write down why a guest might choose each one instead of your hotel.