Enter the average occupancy percentage of your competitive set.
Your Occupancy Rate:0.00%
Market Occupancy Rate:0.00%
Occupancy Rate Index (MPI)
0.0
function calculateOccupancyIndex() {
// 1. Get input values
var roomsAvailable = parseFloat(document.getElementById('roomsAvailable').value);
var roomsSold = parseFloat(document.getElementById('roomsSold').value);
var marketOccupancy = parseFloat(document.getElementById('marketOccupancy').value);
// 2. Clear previous error styling or messages if implemented
var resultContainer = document.getElementById('oriResults');
// 3. Validation
if (isNaN(roomsAvailable) || roomsAvailable <= 0) {
alert("Please enter a valid number for Total Rooms Available.");
return;
}
if (isNaN(roomsSold) || roomsSold roomsAvailable) {
alert("Rooms Sold cannot exceed Rooms Available.");
return;
}
if (isNaN(marketOccupancy) || marketOccupancy = 100) {
interpretationText = "Outperforming the Market";
interpretationClass = "status-good";
} else if (occupancyIndex >= 95) {
interpretationText = "Performing at Fair Share";
interpretationClass = "status-fair";
} else {
interpretationText = "Underperforming the Market";
interpretationClass = "status-poor";
}
// 7. Update DOM
document.getElementById('resultMyOcc').textContent = myOccupancyRate.toFixed(2) + "%";
document.getElementById('resultMarketOcc').textContent = marketOccupancy.toFixed(2) + "%";
document.getElementById('resultIndex').textContent = occupancyIndex.toFixed(1);
var interpElem = document.getElementById('resultInterpretation');
interpElem.textContent = interpretationText;
interpElem.className = "ori-interpretation " + interpretationClass;
// 8. Show Results
resultContainer.style.display = "block";
}
How to Calculate Occupancy Rate Index
The Occupancy Rate Index, widely known in the hospitality industry as the Market Penetration Index (MPI), is a vital benchmarking metric. It allows hoteliers and property managers to compare their property's occupancy performance against a competitive set (compset) or the general market.
What does the Occupancy Index tell you?
While your raw occupancy percentage tells you how full your hotel is, the Occupancy Index tells you how much of the market share you are capturing relative to your competitors.
Index > 100: You are capturing more than your fair share of demand. Your property is outperforming the market.
Index = 100: You are capturing exactly your fair share. Your performance is on par with the market average.
Index < 100: You are capturing less than your fair share. Your property is underperforming compared to competitors.
The Formula
To calculate the Occupancy Rate Index, you first need to calculate your own occupancy rate and obtain the aggregated occupancy rate of your competitive set.
Step 1: Calculate Your Occupancy Your Occupancy % = (Total Rooms Sold / Total Rooms Available) × 100
Step 2: Calculate The Index Occupancy Index (MPI) = (Your Occupancy % / Market Occupancy %) × 100
Example Calculation
Imagine you run a hotel with 1,000 rooms available for the month, and you sold 800 rooms. Your competitive set reported an average occupancy of 75%.
Find your occupancy: (800 / 1000) × 100 = 80%.
Compare to market: You have 80%, the market has 75%.
Calculate Index: (80 / 75) × 100 = 106.6.
An index of 106.6 means you are outperforming the market by roughly 6.6%.
Factors Influencing Your Index
If your index is consistently below 100, consider the following factors:
Pricing Strategy: Is your Average Daily Rate (ADR) too high compared to competitors?
Online Reputation: Do you have lower review scores than your compset?
Distribution: Are your competitors listed on OTAs (Online Travel Agencies) where you are absent?
Amenities: Do competitors offer breakfast or parking that you do not?
Conversely, if your Index is significantly above 100 (e.g., 120+), you might be pricing your rooms too low, leaving potential revenue on the table. A high MPI combined with a low RGI (Revenue Generation Index) suggests you are filling rooms by undercutting the market price.