Having a clear understanding of how you’re performing relative to your competition is essential. Many hotels have focused solely on their internal data: RevPAR, ADR, and occupancy rates, but this only tells half the story. To truly stay ahead, you need to look beyond your own walls and keep an eye on the competition. Here’s why comp set data should be part of your everyday decision-making process.
One common assumption in revenue management is that your hotel’s internal data is enough to set pricing strategies. Sure, your historical performance and future bookings are crucial, but you’re operating in a competitive environment. How are your competitors pricing their rooms? Are they responding to market demand differently than you? Ignoring comp set data can leave you in the dark when it comes to understanding your positioning in the market.
When market demand shifts, waiting for your internal data to tell you what to do can cause you to miss opportunities. If a competitor is dropping rates because they’re struggling with occupancy, you don’t necessarily have to follow. But knowing what they’re doing allows you to either hold your ground with confidence or strategically adjust your rates to gain a competitive edge. A data-driven response, based on both your performance and the comp set, keeps you agile.
Looking at your comp set data ensures you’re holding your strategy accountable. If your rates are consistently higher but your occupancy is lower than your competition, it’s time to ask why. Are you positioned correctly in the market? Should you adjust your pricing strategy? Comp set data can reveal gaps and help refine your approach, giving you a better understanding of whether you’re under or overperforming.
It’s easy to fall into the trap of just copying what the competition is doing. But blindly following the market will never get you ahead. Use comp set data to understand the broader market dynamics, not to imitate them. Instead of being reactive, develop a proactive strategy where you leverage insights to improve your position without sacrificing your identity or value proposition.
One of the greatest benefits of comp set data is its ability to highlight missed opportunities. Imagine if you’re the last hotel in the area with available rooms for a big event, but your rates haven’t been adjusted accordingly. Without knowing what your competitors are doing, you might sell out too early or leave money on the table. Comp set data keeps you aware of when it’s time to adjust your rates to maximize revenue.
Revenue management isn’t a one-person job. When everyone on your team, from sales to operations, understands how your hotel stacks up against competitors, it fosters a culture of informed decision-making. Comp set data doesn’t just sit with revenue managers, it’s an asset for the entire team to align efforts and work toward common goals.
Comp set data gives you insight into how external factors are influencing the market. Whether it’s a sudden surge in demand or a dip because of a major event cancellation, seeing how your competitors react can help you refine your strategies. This isn’t about tracking every little move they make, it’s about having a more complete picture of what’s happening in the market so you can make smarter decisions.
Every hotel faces challenges, whether it’s underperformance during peak seasons or slow pick-up during off-peak periods. Comp set data can help you pinpoint the root cause of these issues. Are you priced too high compared to similar properties? Or is the issue something more nuanced? The data won’t solve the problem on its own, but it will give you clarity and a place to start when you’re searching for solutions.
Revenue management is about making informed decisions, and transparency is key. Comp set data provides that transparency, showing you exactly how your hotel is performing in relation to others. Whether you’re overperforming or underperforming, knowing where you stand allows you to make strategic adjustments and explain your pricing and revenue decisions with confidence.
In the end, comp set data is one tool among many that can help you pursue excellence in revenue management. By combining internal performance metrics with a clear understanding of the competition, you position your hotel for long-term success. The hotel industry is dynamic, and those who consistently adapt and refine their strategies based on comprehensive data are the ones who will lead the pack. The hotel business is constantly changing, and relying on internal data alone won’t cut it. To truly compete, you need to understand the full picture, including what your competitors are doing. By incorporating comp set data into your revenue management strategy, you’ll make more informed decisions and stay one step ahead of the competition. G-App helps you do just that, providing real-time insights into your hotel’s performance relative to your competitors, all in one place. If you’re ready to go beyond the basics and truly optimize your strategy, it’s time to take a look at how G-App can help.
