What does Benchmarking mean in the hotel industry?
July 14, 2020|Hotel Marketing

Benchmarking is about looking at your own business performance and comparing it to that of your competitors to enable you to identify what success looks like as well as what failure looks like. It's a good idea to keep an eye on your competition anyway. If you can identify and learn from other's mistakes you can avoid making your own.

Benchmarking relies on real existing data, your sales figures and the sales figures of your competitors, so there's no guessing game and no estimating. This allows you to make evidence-based decisions, whether that's tweaking your marketing strategy or changing your pricing.

For example, you own two hotels in totally different locations, America and England. Say the sales figures in your hotel in America went up by two percent from last year and your hotel in England went up by five percent from last year. That tells you on the surface that your English hotel is doing better than your American hotel. Is that all there is to it? Certainly not.

Here is where benchmarking comes in to give you the full story. If you look at your competitors in America you might see that the other hotels that you compete against also went up by two percent, which is about the same as your hotel. On the other hand, if you look at your competitors in England, you might see that the other hotels that you compete against increased their sales by 10 percent, which is double that of your hotel. This tells a very different story now. Actually your hotel in America might be doing better than your hotel in England because your hotel in England isn't doing as well as the competition.

That is why benchmarking is so important because it allows you to look at your own performance within the context of other competitors.

If you need help benchmarking your hotel or setting up a revenue management strategy, call us at 888-999-8086 or email us at support@bezla.com.

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