%20--%3e%3cg%3e%3cg%20id='Logotype'%3e%3cg%3e%3cpath%20fill='%23141313'%20d='M46.37,250.9L136.63,28.98H0v237.25C0,296.87,21.93,318.83,52.56,318.83v-.03h160.64v-154.45l-156.9,95.23c-5.8,3.71-12.82-2.05-9.94-8.68Z'/%3e%3cpath%20fill='%23141313'%20d='M347.35,104.3c-68.33,0-115.93,44.71-115.93,108.91s47.6,108.9,115.93,108.9,115.93-44.72,115.93-108.9-47.6-108.91-115.93-108.91ZM347.35,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M633.86,118.01c0,3.31-3.71,3.31-7.02,1.66-18.22-9.54-32.29-15.3-53-15.3-56.71,0-95.62,42.66-95.62,108.08s39.32,109.7,93.14,109.7v-.03c21.93,0,35.61-7.02,56.31-19.87,3.71-2.48,8.28-1.66,6.19,3.71l-5.36,12.85h86.51V28.98h-81.15v89.03ZM594.11,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1406.03,107.65l-23.58,112.61c-1.66,8.68-11.59,9.11-13.65-.4l-24.84-112.22h-94.79c-39.32,0-51.74-11.99-51.74-29.81s10.33-28.15,27.72-28.15c20.27,0,30.64,16.16,32.69,32.29h79.5C1325.35,29.38,1286.43,0,1230.52,0,1168.85,0,1130.32,36.04,1130.32,91.09v16.56h-44.71v67.07h44.71v144.08h81.15v-143.68h70.23l46.53,124.21c3.31,8.28,2.88,17.39-.4,26.1l-28.55,68.73h80.25l120.47-286.51h-93.97Z'/%3e%3cpath%20fill='%23141313'%20d='M886.41,117.98c0,3.31-3.71,3.31-7.02,1.66-19.87-9.94-34.35-15.3-54.65-15.3-60.45,0-93.97,49.29-93.97,107.65,0,64.59,37.26,98.54,87.77,98.54,23.19,0,40.57-7.02,62.1-19.47,5.37-3.31,9.51-.4,7.45,4.57-9.11,20.7-28.55,31.47-59.62,31.47h-83.2v67.07h98.5c72.04,0,123.78-47.63,123.78-114.67V107.65h-81.15v10.33ZM846.67,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1026.35,18.18c-26.1,0-44.71,16.16-44.71,39.35s18.61,39.35,44.71,39.35,44.72-16.16,44.72-39.35-18.62-39.35-44.72-39.35Z'/%3e%3crect%20fill='%23141313'%20x='985.78'%20y='107.65'%20width='81.15'%20height='211.15'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
What is Revenue Generation Index (RGI)?
Revenue Generation Index (RGI) is a key performance indicator used to benchmark a property's revenue performance against its competitive set. It is calculated by comparing a property's Revenue Per Available Room (RevPAR) to the aggregate RevPAR of its competitors.
An RGI of 100 indicates a property has achieved its fair market share, while a score over 100 signifies outperformance, and a score under 100 indicates underperformance.
Join the Lodgify newsletter
How it works
To calculate RGI, a property manager first identifies a 'competitive set'—a group of similar properties in the same market. Then, the manager's property RevPAR is divided by the average RevPAR of the competitive set for the same period, and the result is multiplied by 100.
The formula is: ([Your Property's RevPAR] / [Competitive Set's Average RevPAR]) x 100. This calculation provides a standardized index score, making it easy to track market share performance over time and across different periods.
Why it matters
RGI is crucial for strategic decision-making as it provides essential context for a property's RevPAR figures. It helps operators understand whether their performance is a result of their own strategies or broader market trends.
By tracking RGI, managers can more effectively evaluate the success of their pricing, marketing, and distribution strategies, making data-informed adjustments to capture a larger share of the market revenue.
Examples
- A host of a ski chalet calculates their RevPAR as $200 for a peak season month, while the average RevPAR for comparable chalets was $250. Their RGI is 80 ([200/250]*100), indicating they underperformed the market and likely could have set higher rates.
- A property manager overseeing a portfolio of beachfront condos uses a data analytics tool and finds their properties have an average RGI of 115. This confirms that their dynamic pricing and marketing efforts are successfully capturing 15% more revenue per available room than their direct competitors.
- During a major city marathon, an apartment rental's RGI drops from its usual 105 to 90. The owner investigates and finds that competitors raised their rates more aggressively for the event, highlighting a missed revenue opportunity.
- A new glamping resort, after six months of operation, measures its RGI at 95 against other local unique stays. Management views this as a strong start and sets a strategic goal to reach an RGI of 105 within the next year by refining their bundling and upselling tactics.
Frequently asked questions
What is the difference between RGI and RevPAR?+
What is a good RGI score?+
How can I improve my Revenue Generation Index (RGI)?+
Where can I find the data for my competitive set's RevPAR?+
Related terms
RevPAR (Revenue Per Available Room)
RevPAR is a key performance metric that measures a property's ability to generate revenue from its entire inventory of available rooms.
Revenue Management
Revenue management is the strategic process of using data analytics to predict consumer behavior and optimize pricing and inventory availability to maximize…
Market Penetration Index (MPI)
The Market Penetration Index (MPI) is a key performance indicator that measures a property's occupancy rate relative to the average occupancy rate of its…
Average Daily Rate (ADR)
Average Daily Rate (ADR) is a key performance metric that measures the average rental revenue earned for an occupied property per day.