Revenue Glossary​

Fair Dynamic Quality or FDQ®

💡 A Dataria-exclusive innovation, the FDQ algorithm brings benchmarking into the modern era.
It doesn’t just compare prices — it contextualises them dynamically based on quality, perception, and positioning.

📊 What is FDQ?

FDQ (Fair Dynamic Quality) is a proprietary Dataria indicator that allows you to benchmark your hotel against any property on the market — not just your compset.

It automatically adjusts for key differences such as:

  • ⭐ Hotel category
  • 💶 Advertised rate
  • 🌟 Guest perception (reviews)

👉 The result: a fair, dynamic, and data-informed evaluation of your price-quality positioning.

🧠 Why is it innovative?

Because it moves away from rigid compsets and static benchmarks, offering a dynamic, guest-based perspective through:

  • Actual customer behaviour data
  • Value-adjusted algorithmic modelling
  • Broader market awareness

📘 Example scenario

A 3-star hotel with a review score of 8.5 and a price of €120 is compared with a nearby 4-star hotel rated 7.8 at €140.
FDQ calculates whether the first hotel’s rate is justified or misaligned based on fair perception and positioning.

→ A low FDQ may indicate untapped potential to raise prices.
→ A high FDQ may show misperceived value and signal the need to improve guest satisfaction or pricing strategy.

 Why it matters

  • It lets you benchmark beyond your fixed compset
  • It gives a real, dynamic and fair insight into positioning
  • It empowers smarter pricing and revenue strategy decisions

🔄 Disambiguation with MPI and DQI

While FDQ, Market Penetration Index (MPI), and Dataria Quality Index (DQI) are related to competitive analysis and positioning, each focuses on different dimensions:

  • MPI measures relative market share, i.e., your hotel’s portion of the market compared to competitors in terms of occupancy or sales volume.
  • DQI is a customer perspective quality-price relationship index, measuring how well the price-to-quality balance is perceived versus direct competitors.
  • FDQ goes further by offering a dynamic, multi-factor adjusted comparison (rate, category, perception) placing your hotel in a fair, equitable position across the entire market, not just your compset.

In summary, FDQ evaluates fair, adjusted price-quality positioning among the compset, MKI measures market share, and DQI measures quality-price perception within a competitive set.

LinkedIn
X
Facebook

Resources for the Hospitality Ecosystem

Don’t miss a thing!

Subscribe to the Dataria Revenue Management Software newsletter.

Glosario Revenue

Términos clave de Revenue explicados de forma clara y sencilla.

Ayuda y tutoriales

Si ya eres cliente, una vez dentro de Dataria, dirígite al menú principal.

Revenue Resources

Explore our Revenue Management resource hub.

Frecuently Asked Questions

Answers to the most common questions about Dataria Revenue Management.