Competition comes in many forms. A hotelier may think the two international branded properties on their street are their biggest threats, but in reality, anything from a resort in a different state to a family member’s house can be in competition with a hotel’s ability to sell its rooms and services. While it is easy to overlook these indirect competitors, it is just as easy to assume certain hotels are main competitors, when a closer look may reveal otherwise.
To accurately benchmark against the competition, it is crucial that hoteliers understand who their true competitors are. Today, a hotel’s competitive set will have been impacted by COVID-19 market disruptions. Properties that used to be your competitors may no longer be targeting the same business (or targeting any business at all if they’re no longer operational). Conversely, a property you never considered to be in competition with you—perhaps because they were a higher rated business-focused hotel and you primarily target the leisure market—is now producing compelling family packages with better amenities, at competitive rates to your own.
So how do you benchmark against your competition when no one appears to be swimming in the same lane anymore? Hoteliers must ask themselves: what happened to their competitive environment, who are their competitors now, and what impact are they having on their own business?
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Fiji Hotel and Tourism Association
The Voice of the Industry
