MPI (Market Penetration Index)

Definition

MPI compares your occupancy to the compset average, expressed as a percentage. If your occupancy is 70% and the compset average is 65%, your MPI is 108. An MPI of 100 means you fill at the same rate as the compset.

What it tells you

MPI tells you whether you’re winning or losing on volume. Above 100 = you fill faster than the compset; below 100 = the set is doing better at converting demand. Tracking MPI over time reveals whether your distribution, pricing, and marketing are gaining or losing share.

How to track it

Available from STR reports (or equivalent benchmarking service). Computed monthly.

Where it fits

The volume side of the STR index trio. Useful alongside ARI to see the trade-off: high ARI + low MPI = priced above market and losing share; low ARI + high MPI = discounting hard to win it.