RGI stands for Revenue Generating Index (an alternative definition for RGI in hotels is “RevPar Index”) and is used to measure the financial performance of a hotel. It is calculated by dividing a property’s RevPAR by the aggregate RevPar of other comparable hotels in the local market. The higher the RGI, the more profitable a hotel is.
A hotelier can determine where their property lands in the RGI by comparing their Revenue per Available Room (RevPAR) against the average RevPAR in their local compset.
The formula for RGI is: RGI = RevPAR / Compset’s aggregate RevPAR
To find information on your compset’s RevPAR, you can work with a hotel performance intelligence engine that provides quick access to this and important other metrics.
Improvements can be made in a hotel’s place in the revenue generation index hotel by following many of the same practices used to improve their RevPAR.
These include focusing on driving more revenue through individual channels of income, such as:
Everything you need to perfect the guest journey, boost revenue, and automate processes….