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. (https://preciousmomentschapel.org/) 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.
