Consumers want to find the best value and guest experience for their money. They are already analyzing room rates, special packages, services, amenities, and more. Knowing this information can significantly impact how you position your property, attract more business, and ultimately, drive revenue.
NB: This is an article from Tripleseat
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Here’s a closer look at how to define your competitor set and leverage this knowledge to strategize to become the top hotel choice.
How to Use a Hotel Compset
Hoteliers use a compset to benchmark performance metrics such as room rates, occupancy rates, and revenue per available room (RevPAR). By comparing these metrics, you can identify strengths and weaknesses relative to your competition and adjust your marketing strategies, pricing, and service offerings to improve your market position. This concept is crucial for strategic planning and operational adjustments in the hospitality industry. Don’t feel you have to copy your competitors but rather use the information on your compset to improve your value proposition.
Regularly research your competitors’ offerings, including their packages, amenities, and marketing approaches. A practical method to keep informed is by subscribing to their email newsletters. Additionally, setting up Google alerts for hotel names and relevant keywords like “property renovations” or “sponsorship” can help you stay abreast of industry changes. Analyze what your compset provides to guests and strive to enhance these offerings to distinguish your hotel from the competition.
Periodically review your compset, ideally every six months. This ensures you’re not benchmarking against hotels that may have closed, relocated, renovated, or rebranded.
Top Factors to Include in Your Hotel Compset
When identifying your competitors in the hotel industry, several key factors should be considered to ensure you’re making accurate and useful comparisons:
Location
Proximity is a primary factor. Hotels geographically close to yours, especially those in the same city or region, typically cater to similar markets and guest demographics.
Reviews/Number of Stars
The level of service and quality your hotel offers compared to similarly ranked properties helps align expectations and market positioning.
Property Size
Comparing your hotel with others of a similar size or guest capacity can provide insights into operational scale and potential market share.
Property Type
Whether your property is a boutique hotel, a resort, or a business hotel influences the type of guests you attract and directly competes with similar types.
Event Space Offerings
The size, variety, and quality of event spaces are crucial for hotels focusing on group sales and events. Comparing these can help you understand your competitive edge or identify areas for improvement.
