👉 How much of the market actually belongs to you.
📘 What is Market Share?
Market Share measures the percentage of demand, bookings or revenue a hotel captures within its competitive market (comp set).
It is one of the most widely used metrics for understanding a hotel’s actual weight within its market and evaluating whether it is gaining or losing competitive relevance.
It can be analysed through different perspectives:
- occupancy,
- revenue,
- bookings,
- segments,
- channels,
- total revenue.
📊 Market Share Formula
Market Share = Hotel revenue or demand / Total market revenue or demand × 100
Where:
- Hotel revenue or demand = performance of the analysed hotel
- Total market revenue or demand = combined performance of the competitive set
✅ Why is Market Share important?
- Helps measure real competitive performance.
- Evaluates the hotel’s ability to capture demand versus its comp set.
- Detects gains or losses in market presence.
- Supports commercial positioning analysis.
- Improves strategic pricing and distribution decisions.
💡 Practical example of Market Share
A hotel generates €1M in a market where the total competitive set generates €10M.
→ Market Share = 10%
This means the hotel is capturing 10% of the total market revenue within its competitive environment.
🔄 Disambiguation of Market Share
- Market Share vs MPI (Market Penetration Index):
MPI compares relative occupancy performance against the comp set.
Market Share measures overall market participation. - Market Share vs Positioning:
Positioning reflects brand perception and strategic intent.
Market Share measures actual captured business. - Market Share vs DQI:
DQI evaluates perceived value for money within the market.
Market Share evaluates how much of the market you are capturing.
In summary: Market Share = the proportion of the competitive market your hotel is truly capturing.
