In the hospitality industry, a competitive set refers to a group of similar hotels or properties that compete for the same target market and business. These properties are often located in close proximity to each other and offer comparable amenities, services, and pricing. Analyzing the performance of hotels within a competitive set helps businesses understand their market position, pricing strategy, and performance relative to their competitors, enabling them to make informed decisions to stay competitive in the market.
What is a competitive set in the hospitality industry?
A competitive set in the hospitality industry refers to a group of hotels or properties that are similar in terms of location, amenities, target market, and pricing, and compete for the same customers.
How do hotels determine their competitive set?
Hotels typically determine their competitive set by analyzing factors such as location, guest demographics, amenities, pricing, and market positioning to identify other properties that are their direct competitors. This analysis helps hotels understand their competitive landscape and make strategic decisions to stay competitive in the market.