Yield Index

Definition

A composite metric measuring how well a hotel is yielding revenue compared to potential. Often expressed as actual RevPAR divided by maximum-possible RevPAR (full occupancy at BAR), expressed as a percentage.

What it tells you

Yield index of 100% would mean every available room sold at BAR — a theoretical ceiling rarely reached. Real yield indices typically run 40–75%; rising yield index over time indicates improving revenue capture.

How to track it

Computed weekly or monthly. Most BI tools don’t surface yield index by default; some RMS systems do. Manual calculation requires BAR data and occupancy data combined.

Where it fits

Yield index is a higher-level summary metric. For owners and senior management, it’s a single-number expression of revenue efficiency. Less useful for day-to-day pricing decisions.