
Derek Martin
20 Jan 2025
Establishing a competitor set involves identifying and analysing businesses that are competing for the same customers...
A competitor set within the hospitality industry refers to a group of businesses that offer similar products or services and compete for the same target market. In the hospitality industry, this typically includes hotels, resorts, bed and breakfasts, vacation rentals, and other accommodations that cater to travellers.
By studying the offerings, pricing strategies, customer reviews, and overall performance of competitors, businesses can benchmark themselves and gain insights into their own strengths and weaknesses. This analysis helps businesses to position themselves effectively, identify areas for improvement, and develop strategies to attract and retain customers in a competitive marketplace.
Establishing a competitor set involves identifying and analysing businesses that are competing for the same customers in the same geographical area or offering similar amenities and services. This process helps businesses assess market trends, understand industry dynamics, and make informed decisions regarding pricing, marketing strategies, and differentiation.
When establishing a competitor set within the hospitality industry, it's important to follow certain guidelines to ensure accuracy and effectiveness. Here are some dos and don'ts to help you get it right:
Dos:
Clearly define your target market - Understand who your customers are, their preferences, and the specific segment of the market you want to target. This will help you identify competitors that cater to similar customer needs.
Conduct thorough research - Gather as much information as possible about potential competitors. Look at their service offerings, pricing strategies, quality standards, and customer reviews. This will provide insights into their strengths and weaknesses.
Consider both direct and indirect competitors: Identify businesses that directly compete with your hospitality offerings, such as hotels or resorts in the same location or with similar amenities. Additionally, consider indirect competitors like vacation rentals or bed and breakfasts that may offer alternative options for travellers. This is also known as primary and secondary competitor sets.
Analyse competitors' online presence: Examine their websites, social media platforms, and online reviews to understand how they engage with customers and showcase their offerings. This will help you highlight areas where you can differentiate yourself.
Visit competitor establishments incognito: Experience firsthand what competitors offer by visiting their properties anonymously. Pay attention to the overall customer experience, facilities, and any unique features or services they provide. This is also known as mystery guest experiences.
Don'ts:
Don't solely rely on rankings or ratings: While rankings and ratings can provide some insights, they may not always accurately reflect the reality of a competitor's offering. Online rankings and ratings are only looking at one segment of the business. Conduct a comprehensive analysis to get a complete picture.
Don't limit yourself to local competitors: Consider national or international competitors who may attract a similar target market. In today's globalized world, travellers have a wide range of options available to them.
Don't ignore customer feedback: Feedback from guests is a valuable resource for understanding the strengths and weaknesses of your competitors. Pay attention to online reviews, customer complaints, and suggestions to identify areas where you can outperform them. It may also be worth investing into a guest review management platform to gain further insights.
Don't ignore industry trends: Keep up with the latest industry trends and innovations to stay ahead of the competition. Look for opportunities to incorporate new technologies or services that will enhance the customer experience.
Don't underestimate the importance of differentiation: It's crucial to differentiate your offerings from competitors to attract customers. Identify unique selling points, whether it's exceptional customer service, exclusive amenities, or a personalized experience.
By understanding their competitors' strengths, weaknesses, and customer perception, accommodations can better differentiate themselves, optimize their offerings, and deliver a superior guest experience. This knowledge also helps businesses to identify gaps in the market or areas where they can outperform their competitors, leading to better strategic decision-making and increased profitability.