RGI – Revenue Generation Index

What is the meaning / definition of RGI in the hospitality industry?

RGI stands for: Revenue Generation Index.

RGI compares your hotel’s RevPar tothe average RevPar in the market. It is used to determine if a hotel is gaining a fair share of revenue compared to its compset.

How do you calculate RGI?

RGI Formula: RGI= Your Hotel’s RevPAR / Hotel Market RevPAR

When:

• RGI = 1 The hotel RevPar is equal to the average RevPar of their comp set
• RGI > 1 The hotel RevPar is higher than the average RevPar of their comp set
• RGI < 1 The hotel RevPar is less than the average RevPar of their comp set

See Also:

• RevPAR
• ARI
• MPI

Synonyms

• RGI
• RevPAR Index
• Revenue Generation Index

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