Building a Comp Set for Your Hotel – Best Practices
September 28, 2020|Hotel Marketing

What is a competitive set, and how can you use it to your full advantage?

As we always say here at Bezla, you must stay ahead of the competition. That means keeping a close eye on what and how your competitors are doing. The big question is, which competitors?

That is where a comp set comes in. A competitive set, or “comp set” for short, is a group of hotels that you compare your own business to for benchmarking purposes. A good comp set has close competitors in the same geographical area, market segment, and customer base.

For example, if you own a budget hotel, you will not have a high-end luxury hotel in your comp set. Aside from the budget class, type of accommodation, facilities and amenities, you should also consider the hotel location. While it is obvious to compare your hotel to others in your local area, you may want to include hotels where room rates are similar to your comp set, and these may be in locations far away from your hotel.

By choosing your own comp set, you can effectively make it as easy or difficult as you like to have a high ranking among your comp set. Do not be tempted to make it too easy or too difficult for yourself. Remember, this is only an internal measure, not a public ranking. It is solely in which your property has excellent performance and in which there is room for improvement.

The hotel market is changing, so your comp set should not stay the same forever. You should review which competitors are in your comp set from time to time. Choosing which competitors to include in your comp set should be in response to market changes, not what your rank is among your competitors.

Remember, your hotel is only as competitive as your comp set. Revenue managers who take advantage of their comp set will come up with a smart pricing strategy and are eventually able to optimize every revenue opportunity.

if we can help your hotel revenue management in any way at all, email us at support@bezla.com, or call us at 888-999-8086.

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