Use your Competitive Set to Challenge Performance
Measuring competitive set and monitoring your performance versus competitors can be a very motivating tool for the senior team at your hotel, especially when implemented and used in the right way.
Whether you are in a set up phase or working to grow or challenge your existing business, we recommend that you dedicate time to really examining who should be included in your competitive set. It is also valuable to identify is it overall or specific segment performance you are looking to review by setting this competitive set.
For instance, do you want this competitive set to be price specific, quality specific, location specific or segment specific?
Does your competitive set challenge your performance?
Does your competitive set provide learning, inspiration, and ambition across your team?
If not consider the following:
As a general rule most hotels need more than one competitive set to cover the range of competitors that they compete with. The first step is to agree is this a location set, a classification set or perhaps a segment set such as a competitive set for wedding business?
1. Be really thorough when you set your competitive set criteria.
2. Include an aspirational hotel in your competitive set. This will allow you insights into the opportunity in the market in terms of rate and occupancy at a higher classification or category than your hotel.
3. Learn from aspects of your competitive set; their business, their online presence, their product, their service offering, their use of imagery in conjunction with their performance metrics, their marketing communications.
4. Last but not least Resist the temptation to change your set half way through the year. Especially when you are monitoring performance on a historical basis.
5. Instead stay with it, learn from it and start planning for change at year end.
To discuss your competitive set, contact Oonagh Cremins or any of our team of Associates at The Innovate Room for further information on the services we provide.