Free tool

Hotel ARI Calculator

Where does your rate stand against your competitors? Enter your own rate and the rates you saw — and give each competitor a weighting factor, so the renovated place next door doesn't count as if it were the same as yours. Free, no sign-up.

The night's published rate — what the guest sees in the shop window. Not your realised ADR (the difference).
100 = parity with the market. Around it there's a tolerance band of ±3 points: one or two points are noise, not a signal.
Your competitors — rate and weighting factor
The rate you saw, for the same night and the equivalent room type.
Your own property is 1.00. Above 1 = better than you (e.g. 1.30 for a renovated one), below 1 = weaker.
Leave it empty if you didn't record it today — it isn't filled in with a guess.
Their rate is divided by the factor, to bring it down to your level.
Three competitors — as many as WisDom RM's comp set holds.
Same category as you? Leave it at 1.00.
Enter your own rate and at least one competitor to see your ARI.

What is ARI?

ARI (Average Rate Index) shows where your rate stands against your competition: 100 means parity, 92 that you're asking 8% less, 110 that you're asking 10% more. It's a measure of position, not of performance.

At the big benchmarking firms it's built on realised ADR. Here the numerator is the night's published rate — “how do I look tonight”, not “what did I end up making”. Two useful questions; don't mix them up.

How is it calculated?

ARI = (Your rate ÷ Comp set average) × 100

The part that isn't obvious is the denominator. A simple average counts rates without knowing what the guest gets for each one — so every competitor gets a weighting factor, and their rate is divided by it:

Adjusted rate = Competitor rate ÷ Weighting factor
Adjusted average = Sum of adjusted rates ÷ Count

That way the renovated property at €120 with a factor of 1.30 comes down to €92.31 and is compared with you like for like. Its higher rate is no proof that you're underpricing.

When it can't be calculated

If you have no competitor rate at all, the index is not calculated. It doesn't show 100, it doesn't show 0, it doesn't take the week's average. An index without a denominator isn't an index — it's a guess with two decimal places.

And a sneakier case: the average comes from the competitors you recorded. If one day you noted all three and the next day only one, you'll see an index both times — but they don't stand on the same ground. The tool always says how many went into the average.

What this tool doesn't calculate

Never want to work it out again?

ARI changes every day, for every date separately. In WisDom RM you record the rates in Rate Intelligence — and ARI is calculated on its own for 30 dates ahead, per room type, with the weighting factors you set once in Settings. You see it in each date's card in the Demand Calendar. In every plan.

WisDom RM doesn't download competitor rates from anywhere and has no access to market data. You record the rates yourself, as you saw them.