{"id":22452,"date":"2020-04-07T09:40:27","date_gmt":"2020-04-07T09:40:27","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/ari-average-rate-index\/"},"modified":"2024-12-23T09:22:12","modified_gmt":"2024-12-23T09:22:12","slug":"ari-average-rate-index","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/ari-average-rate-index","title":{"rendered":"ARI &#8211; Average Rate Index"},"content":{"rendered":"<p>What is the meaning \/ definition of ARI in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>ARI stands for: Average Rate Index.<\/p>\n<p>It is a <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/kpi-key-performance-indicator\">Hotel KPI<\/a> that measures the performance of their <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/adr-average-daily-rate\">ADR<\/a> compared to their comp set during the same period (<a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/compset-competitive-set\">competitive set<\/a>: a group of other <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel\">hotel<\/a> brands and competitor that have a similar <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/target-market\">target market<\/a> and concept).<\/p>\n<p style=\"text-align: left;\">How do you calculate ARI?<\/p>\n<ul>\n<li style=\"text-align: left;\"><strong>ARI Formula<\/strong>: ARI= Hotel ADR \/ Aggregated group of hotel\u2019s ADR<\/li>\n<\/ul>\n<p style=\"text-align: left;\">Calculation:<\/p>\n<ul>\n<li style=\"text-align: left;\">$150 \/ $120 = 1.25<\/li>\n<\/ul>\n<p>(this means that your ADR is 25% better than the average of your competitive set)<\/p>\n<p>When:<\/p>\n<ul>\n<li>ARI Index = 1.00 The hotel ADR is equal to the average ADR of their comp set<\/li>\n<li>ARI Index &gt; 1.00 The hotel ADR is more expensive than the average ADR of their comp set<\/li>\n<li>ARI Index &lt; 1.00 The hotel ADR is less expensive than the average ADR of their comp set<\/li>\n<\/ul>\n<p>Depends on the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/occupancy-rate\">occupancy rate<\/a>, the hotel can choose to lower, equal or higher their ADR compared to the ADR or their comp set in order to gain more revenue and make themselves more competitive towards their competitors.<\/p>\n<p><strong>See Also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/mpi-market-penetration-index\">MPI<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/rgi-revenue-generation-index\">RGI<\/a><\/li>\n<\/ul>\n<p><strong>Synonyms:<\/strong><\/p>\n<ul>\n<li>ARI<\/li>\n<li>Average Rate Index<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of ARI in the  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[32,9],"tags":[],"class_list":["post-22452","post","type-post","status-publish","format-standard","hentry","category-a","category-glossary"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ARI - Average Rate Index Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: ARI stands for Average Rate Index. It is a Hotel KPI that measures the performance of their ADR compared to their comp set during the same period.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/glossary\/ari-average-rate-index\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARI - Average Rate Index Definition \/ Meaning - Xotels\" \/>\n<meta property=\"og:description\" content=\"Definition: ARI stands for Average Rate Index. It is a Hotel KPI that measures the performance of their ADR compared to their comp set during the same period.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/glossary\/ari-average-rate-index\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-07T09:40:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T09:22:12+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/ari-average-rate-index#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/ari-average-rate-index\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"ARI &#8211; Average Rate Index\",\"datePublished\":\"2020-04-07T09:40:27+00:00\",\"dateModified\":\"2024-12-23T09:22:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/ari-average-rate-index\"},\"wordCount\":189,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"A\",\"Hotel Terminology &amp; Glossary\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/ari-average-rate-index\",\"url\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/ari-average-rate-index\",\"name\":\"ARI - Average Rate Index Definition \\\/ Meaning - Xotels\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#website\"},\"datePublished\":\"2020-04-07T09:40:27+00:00\",\"dateModified\":\"2024-12-23T09:22:12+00:00\",\"description\":\"Definition: ARI stands for Average Rate Index. 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