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Calculate market penetration index

Is your hotel getting it's fair market share? What is your market penetration index? Compare regional arrivals statistics with yours. Stats can be obtained from airport, tourism boards. Are you getting your part or fair share of the pie? Market share reports help you to understand your performance versus your competitors, both in terms of occupancy and average rate. They can provide the following information:.
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MPI - Market Penetration Index

Calculate market penetration index
Calculate market penetration index
Calculate market penetration index
Calculate market penetration index
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Basic Revenue Management Training

Estimating market penetration suggests the probable number of customers in a target market. In "Strategic Management Theory: An Integrated Approach," Charles Hill refers to market penetration as a business strategy that concentrates an organization's efforts toward the expansion of an existing market share in a current product market. Using this strategy, a company relies on heavy advertising to influence the customer's choice of brands and to create a brand name reputation for its product. It is on this basis that a company attracts customers and increases its market share. Identify potential customers on the basis of the demographic groups you will target in the national market. Next, refer to the U.
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Define the High Market Penetration Index

As anyone working in hotel management knows, getting this difficult balancing act right is difficult. By paying attention to the following metrics, you can effectively measure the performance of your hotel. To calculate your average daily rate, calculate your total room revenue over a day period and then divide it by the number of hotel rooms you have. Repeat this each month to track the trends in your averages. Calculating your average occupancy rate allows you to identify which months and seasons prove most popular.
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There are many techniques for measuring the value of a company. Corporate success is quantified using parameters influenced by different aspects of performance. A company's market penetration is one of these numbers that offers useful information about the entity's past success. But market penetration also provides clues about potential future success. The mathematics behind market analysis can be quite complex, but the concept is relatively simple.
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