Knowing your hotel’s performance and quality is crucial for your business.
This period of the year is a good moment to look back and see what went good in your Hotels’ performance, to focus on your new pricing strategy and to give your online business the best chance of success.
There are many ways to do so; review of the sales and pace reports, observe the market trends and verify how your competitors sell their rooms.
Looking at the right competitors is a key part of revenue management and related to set the right price strategy for the coming year.
In fact, if you sell too high or too low you are risking not to accomplish one of the main Revenue Management purposes: attract the right guests at the right moment.
Maybe you have already a list of competitors in mind, but how many do you need to have a good framework during the year in the most efficient way possible?
And how to proceed in order to select the right ones?
- Choose your direct competitors:
In order to start choosing the right competitors we recommend to first look carefully at the 5 most important key factors: Location, Selling Price, Accommodation Type, Quality and Review Score.
Following these key factors you will have a better overview of an accurate competitive set to monitor during the year.
- Dig deeper: what is really important at this point is to dig deeper into your selected competitive set.
The further you analyze, the more you will have a clear overview regarding strategy and trends in your market. Aspects from your competitors you could investigate are e.g. fluctuations of their pricing strategy, room type and rate type offer, distribution strategy, add-ons or loyalty programs.
- Start monitoring:
After you have selected your competitive set and reviewed their strategy, you can use the newly gained knowledge for the advantage of your own property.
In order to check relevant data in an efficient and consistent way without wasting your time, we suggest to maintain your focus on 6-10 competitors.
Keeping a clear competitive set will help you to check data you need faster, in order to set the right pricing strategy across all your channels and adjust dependently on your performance, rooms sold and total occupancy.
Using BookingSuite Rate product, you can update your competitive set and have a clear picture about how your actual competitors are selling and you can monitor their dynamics.
This way it will be easier to manage prices in the right moment having also Booking.com market demand trends in a single platform.