Calculate your hotel's fair share of the market based on rooms available. Determine what percentage of market demand you should capture.
Fair share is the simplest yet most fundamental competitive metric in hotel revenue management. It represents the proportion of total market rooms that your hotel contributes. If your hotel has 200 rooms in a competitive set totaling 1,000 rooms, your fair share is 20%. In theory, you should capture 20% of all room nights sold in the market.
When you capture more than your fair share, you're winning — taking demand away from competitors. When you capture less, competitors are winning. The MPI (Market Penetration Index) directly measures this by dividing your actual market share by your fair share.
This calculator computes your fair share percentage and translates it into expected room nights based on market demand. Knowing your fair share is the baseline for all competitive performance analysis and helps set realistic revenue targets.
Restaurant owners, hotel managers, and event coordinators depend on accurate fair share calculator — hotel room supply market share numbers to maintain profitability while delivering exceptional guest experiences. Return to this tool whenever menu prices, occupancy rates, or staffing levels shift to keep your operations on track.
Fair share sets the performance baseline. Without knowing your expected share, you can't evaluate whether your hotel is over- or underperforming. Use this calculator to establish the benchmark against which MPI, ARI, and RGI become meaningful. Instant results let you test multiple scenarios so you can align pricing, staffing, and inventory decisions with current demand and cost pressures.
Fair Share % = (Hotel Rooms ÷ Total Market Rooms) × 100 Expected Room Nights = Total Market Rooms × Market Occupancy × Fair Share % × Days
Result: 20.00% fair share, 4,320 expected room nights
Fair share = 200 ÷ 1,000 = 20%. Total market room nights at 72% occupancy over 30 days: 1,000 × 0.72 × 30 = 21,600. Your expected share: 21,600 × 20% = 4,320 room nights.
Fair share creates a neutral starting point for competitive analysis. If every hotel in the market performed identically, each would capture exactly its fair share. Deviations from fair share reveal competitive advantages and disadvantages that drive strategic decisions.
New hotel openings are the most significant fair share disruptor. When a 300-room hotel opens in a 1,500-room market, total supply jumps to 1,800 rooms, and every existing hotel's fair share decreases by about 17%. Revenue managers must anticipate these shifts and adjust forecasts accordingly.
While overall fair share is room-based, some revenue managers calculate segment-level fair share. A hotel with strong meeting facilities may have a higher fair share of group demand than transient demand. Segmented fair share analysis helps target the segments where the hotel has the strongest competitive position.
Fair share is the percentage of total competitive set rooms that belong to your hotel. If your hotel is 15% of the market's room supply, your fair share of demand is 15%.
No. Fair share is purely a supply-based calculation. A luxury hotel and a budget hotel with the same number of rooms have the same fair share. Quality differences are captured by ARI and the rate at which you exceed or fall below fair share.
When a new hotel opens, total market rooms increase and every existing hotel's fair share decreases. A 200-room hotel in a 1,000-room market has a 20% fair share, but if a 200-room hotel opens, fair share drops to 16.7%.
No. Fair share is what you should capture based on supply. Actual market share is what you do capture based on bookings. MPI = actual market share ÷ fair share × 100.
Yes. Total market rooms includes your hotel plus all competitive set hotels. Your fair share is your hotel's proportion of this total.
STR recommends 5-7 hotels as a competitive set. Including too many dilutes the analysis; too few may not represent the competitive landscape accurately.