Hotel Comp Set Analysis: What It Is & How To Identify It?

If you’re a part of the hotel revenue management or hotel booking business where every move counts, staying ahead of the competition is crucial.

You need an essential weapon that gives you a bird’s eye view of the market and helps you make strategic decisions. 

In this blog post, we’ll break down the basics of a hotel competitive set, including what it is and how you can identify the correct one for your hotel for an effective hotel competitive analysis to gain a competitive edge.

Because we believe that success is measured by how well a hotel performs compared to its comp set.

So, stay attuned till the end.

What is a Comp Set?

A hotel comp set, short for “competitive set,” includes a group of hotels that are considered direct competitors to each other. These hotels usually share similar characteristics, such as size, location, or guest amenities, which makes them comparable in the eyes of potential guests.

Hotel managers use this set to gauge how well their property is performing by comparing metrics like room rates, occupancy rates, and services against those of the hotels in the comp set. This comparison helps them identify strengths to promote and weaknesses to improve, aiming to attract more guests and increase revenue.

Understand it by this example: Sunny Shores, a beachfront hotel in Miami, forms a comp set with Ocean View Retreat and Blue Horizon Inn to evaluate its market standing. These hotels share similar attributes such as location, size, and target market, making them direct competitors. The manager of Sunny Shores reviews metrics like room rates, guest services, and satisfaction scores. Noticing that Ocean View Retreat enjoys higher guest ratings due to its superior spa services, Sunny Shores might decide to upgrade its spa offerings to boost its own ratings and attract more visitors.

To understand more precisely, learn how to do comp set analysis for your hotel our hotel by watching this video:

How Do You Identify Your Hotel Competitors?

To analyze your hotel competitors, it is essential that you are well acquainted with your strengths and weaknesses.

List the key features and benefits your property offers and compare those to the benefits of area hotels.

Your major focus should be on the area hotels that are similar in size and offer similar amenities.

You must know that successful sales strategies are centered on accurate comp set breakdowns. Moreover, by leveraging AI, you can enhance the efficiency of your sales strategies.

This is why you must take time and research well while taking the assistance of other employees.

Here are different tips for identifying your hotel competitors: –

1. Look For Hotels With Similar Pricing

For an effective comp set analysis, you must identify the hotels with similar pricing in the area.

To get the pricing data of those competitors, you can use MakCorps Hotel Price API. This API has extensive data as it provides hotel pricing data from 200+ hotels, hotel chains, and online travel agencies around the globe. The data will be in JSON format.

Curious? how can you extract the real-time hotel pricing data from the API? Watch the following video:

2. Subscribe To Emails

To keep a close eye on your competitors, you can subscribe to all of your competitor’s newsletters.

This will help you to recognize their strategy and how they use emails to stay at the top of the mind of their guests.

Also, you will be updated with any new promotions and news that they are using at the present time.

3. Checking Competitors’ Websites And Blogs

You must go through your competitor’s websites each month and read their blogs on a regular basis.

This will provide you a comparative hotel comp set analysis of what they are offering to that of your own.

If you come across a particular amenity that is becoming a major selling point, you can take note of it.

Think of something else that would solve the similar problem of the customers and also helps you stand out from the competition.

This is an effective method to constantly check up on trends in the current market.

4. Check Out Their Packages

While monitoring your competitors, you will come across different packages that they offer to their guests in exceptional cases.

These can be meeting packages, food and beverage packages, welcome baskets, and much more.

Create a unique and affordable package of your own that will help you stand out from your competition in the respective area.

Inclusive packages are a great option to attract more customers to your hotel as it becomes easy for customers to avail of the benefits instantly.

Conclusion:

A Hotel comp set analysis for your hotel is a crucial tool for understanding your market and staying competitive in the hotel industry. By identifying the right comp set for your property, you can gain valuable insights into your competitor’s rates, occupancy levels, and overall performance. 

Using this information you can make strategic decisions to outpace your competitors and improve your hotel’s revenue growth. 

If you want to stay competitive in the ever-evolving hotel industry, utilizing a hotel comp set is a must. And to make your job even easier, don’t forget to check out MakCorps hotel API to easily access your competitor’s rates and stay ahead of the competition.