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The specific trends you want to track may get lost in the average, making it harder to interpret what your closest competitors are doing.",[],{"type":922,"text":1196,"spans":1197,"direction":932},"In practice, a healthy CompSet often includes more than one competitor type:",[],{"type":1158,"text":1199,"spans":1200,"direction":932},"Primary competitors: These are properties that offer a very similar product, price point, and location, and they are often the most direct alternatives for your guests.",[1201],{"start":1162,"end":1202,"type":1164},20,{"type":1158,"text":1204,"spans":1205,"direction":932},"Secondary competitors: These are properties that differ somewhat in price or location but can still compete for your guest segments, especially during high-demand periods.",[1206],{"start":1162,"end":1207,"type":1164},22,{"type":922,"text":1209,"spans":1210,"direction":932},"For example, a city-center business hotel might have a primary CompSet of other 4-star business hotels within a 1-mile radius. During a major city-wide event, the secondary CompSet might expand to include 5-star hotels (as prices compress) or hotels slightly further out.",[],{"type":922,"text":1212,"spans":1213,"direction":932},"The composition of your CompSet can also act as a reality check on brand positioning. If you believe you are a luxury property, but guests frequently compare you to mid-scale hotels, your CompSet analysis may highlight a gap in perceived value.",[],{"type":1134,"text":1215,"spans":1216,"direction":932},"How do you calculate or select a CompSet?",[],{"type":922,"text":1218,"spans":1219,"direction":932},"You typically do not calculate a CompSet using a strict mathematical formula. Instead, you select it based on attributes that reflect guest decision-making.",[],{"type":922,"text":1221,"spans":1222,"direction":932},"To build your set, you can evaluate potential competitors against these four criteria (often called the 4 Ps):",[],{"type":1158,"text":1224,"spans":1225,"direction":932},"Proximity: Is the property located near you?",[1226],{"start":1162,"end":1227,"type":1164},10,{"type":1158,"text":1229,"spans":1230,"direction":932},"Product: Does it offer similar amenities, room sizes, and service levels?",[1231],{"start":1162,"end":1232,"type":1164},8,{"type":1158,"text":1234,"spans":1235,"direction":932},"Price: Are their rates broadly comparable to yours?",[1236],{"start":1162,"end":1237,"type":1164},6,{"type":1158,"text":1239,"spans":1240,"direction":932},"Participation: Are they targeting the same customer segments (corporate, leisure, groups)?",[1241],{"start":1162,"end":1242,"type":1164},14,{"type":922,"text":1244,"spans":1245,"direction":932},"Selection example: If you are selecting a set for “Hotel A,” you might evaluate candidates like this:",[1246],{"start":1162,"end":1247,"type":1164},18,{"type":1158,"text":1249,"spans":1250,"direction":932},"Hotel B: It is on the same street, with a similar price and the same star rating. (Include.)",[1251],{"start":1162,"end":1232,"type":1164},{"type":1158,"text":1253,"spans":1254,"direction":932},"Hotel C: It is on the same street, but it is priced much lower and offers shared bathrooms. (Exclude.)",[1255],{"start":1162,"end":1232,"type":1164},{"type":1158,"text":1257,"spans":1258,"direction":932},"Hotel D: It is farther away, but it offers a similar luxury level and targets the same conference guests. (Include as secondary.)",[1259],{"start":1162,"end":1232,"type":1164},"rich_text$4adbe97c-42da-4137-8a11-ae3b4af0c6e0","rich_text",{"variation":1263,"version":67,"items":1264,"primary":1265,"id":1276,"slice_type":1277,"slice_label":5},"light",[],{"title":1266,"description":1270,"link":1271,"image":1275},[1267],{"type":922,"text":1268,"spans":1269,"direction":932},"Build your Compset automatically. For free, in only 5 minutes.",[],[],{"link_type":215,"key":1272,"url":1273,"text":1274},"266cb032-8a2d-4916-938e-922c0de5c300","https://smartfree.smartness.com ","Access Smartfree",{},"blog_cta$7815f917-1cb4-4bd7-8af9-a091b9a2aa3a","blog_cta",{"variation":32,"version":67,"items":1279,"primary":1280,"id":1443,"slice_type":1261,"slice_label":5},[],{"text":1281},[1282,1285,1288,1293,1298,1313,1318,1323,1326,1329,1332,1336,1353,1356,1359,1362,1365,1368,1371,1374,1377,1382,1385,1388,1391,1394,1397,1400,1407,1410,1413,1416,1419,1422,1425,1428,1431,1434,1437,1440],{"type":1134,"text":1283,"spans":1284,"direction":932},"What factors influence CompSet performance?",[],{"type":922,"text":1286,"spans":1287,"direction":932},"Several external and internal factors can shift how your CompSet performs and how you compare to it:",[],{"type":1158,"text":1289,"spans":1290,"direction":932},"New supply: A new hotel opening in your area can increase choice for guests and reshape the competitive landscape.",[1291],{"start":1162,"end":1292,"type":1164},11,{"type":1158,"text":1294,"spans":1295,"direction":932},"Renovations: If a competitor renovates, their perceived product value may improve, which can change their pricing and demand profile.",[1296],{"start":1162,"end":1297,"type":1164},12,{"type":1158,"text":1299,"spans":1300,"direction":932},"Market demand shifts: A large event or conference can cause compression, pushing demand across many properties regardless of typical price hierarchy.",[1301,1303],{"start":1162,"end":1302,"type":1164},21,{"start":1207,"end":1304,"type":928,"data":1305},71,{"id":1306,"type":701,"tags":1307,"lang":14,"slug":1308,"first_publication_date":1309,"last_publication_date":1310,"uid":1311,"url":1312,"link_type":24,"isBroken":34},"Z7W1KRAAACEAXzrC",[],"impact-of-events-on-hotel-rates-how-to-evaluate-it-to-maximize-profits","2025-02-19T10:40:43+0000","2025-03-27T05:42:18+0000","impact-event-hotel-rates","/en/blog/impact-event-hotel-rates",{"type":1158,"text":1314,"spans":1315,"direction":932},"Aggressive pricing strategies: If one competitor drops rates sharply to stimulate demand, it can influence the market’s visible price anchors and affect the set’s average rate.",[1316],{"start":1162,"end":1317,"type":1164},30,{"type":1158,"text":1319,"spans":1320,"direction":932},"Change in brand or flag: If a competitor rebrands (for example, an independent hotel joining a major chain), they may gain access to new distribution channels, which can change how they compete.",[1321],{"start":1162,"end":1322,"type":1164},24,{"type":1134,"text":1324,"spans":1325,"direction":932},"How do you improve your CompSet strategy in your hotel?",[],{"type":922,"text":1327,"spans":1328,"direction":932},"Defining a CompSet is not a one-time task. It is often an ongoing part of revenue management. If you rely on a static list of competitors or focus on the wrong signals, it becomes easier to misread your market position.",[],{"type":922,"text":1330,"spans":1331,"direction":932},"To turn competitive data into clearer, more actionable decisions, consider these strategies.",[],{"type":1333,"text":1334,"spans":1335,"direction":932},"heading3","1. Differentiate between aspirational and traditional competitors",[],{"type":922,"text":1337,"spans":1338,"direction":932},"One common mistake is selecting only the competitors you want to be like, rather than the ones you actually compete with. This creates an “aspirational” CompSet.",[1339,1349],{"start":1162,"end":1340,"type":928,"data":1341},72,{"id":1342,"type":701,"tags":1343,"lang":14,"slug":1344,"first_publication_date":1345,"last_publication_date":1346,"uid":1347,"url":1348,"link_type":24,"isBroken":34},"Z7dWxxAAACQAYfdZ",[],"competitive-analysis-for-hotels-3-mistakes-to-avoid-when-choosing-your-competitive-set","2025-02-20T16:22:42+0000","2025-11-17T14:39:20+0000","competitive-analysis-hotel-3-errors-to-avoid-competitive-set","/en/blog/competitive-analysis-hotel-3-errors-to-avoid-competitive-set",{"start":1350,"end":1351,"type":1352},57,61,"em",{"type":922,"text":1354,"spans":1355,"direction":932},"While it can be useful to look up-market, relying only on an aspirational set can distort day-to-day decisions. If you only compare yourself to luxury properties with higher rates than yours, you may feel constant pressure to increase rates even when your demand signals do not support it.",[],{"type":922,"text":1357,"spans":1358,"direction":932},"Instead, maintain two views. Your primary CompSet can reflect reality—the properties you most often compete with today. Your secondary, aspirational set can help you track where you want to go. Many teams use the primary set for daily pricing decisions and the aspirational set to inform longer-term product and positioning work.",[],{"type":1333,"text":1360,"spans":1361,"direction":932},"2. Stop following competitor prices blindly",[],{"type":922,"text":1363,"spans":1364,"direction":932},"A major pitfall of watching a CompSet is the temptation to copy competitor moves without context. If a competitor drops their rate by €10, the instinct is often to match them quickly.",[],{"type":922,"text":1366,"spans":1367,"direction":932},"Over time, this can contribute to price-led competition that makes positioning harder to maintain. Your competitor may have dropped rates due to a group cancellation you do not see, or because they are undergoing disruptive work and want to offset the impact.",[],{"type":922,"text":1369,"spans":1370,"direction":932},"Use CompSet data as a signal, not a command. If a competitor drops rates, you can review your own pickup and occupancy first. If you are performing steadily, you may decide to hold your price and focus on communicating value.",[],{"type":1333,"text":1372,"spans":1373,"direction":932},"3. Monitor value, not just price",[],{"type":922,"text":1375,"spans":1376,"direction":932},"Price is the easiest metric to track, but guests often decide based on value. CompSet analysis can be more useful when it goes beyond checking rates on an OTA.",[],{"type":922,"text":1378,"spans":1379,"direction":932},"Regularly audit the product signals of your CompSet, such as the following:",[1380],{"start":1202,"end":1381,"type":1352},27,{"type":1158,"text":1383,"spans":1384,"direction":932},"Have they updated their photos?",[],{"type":1158,"text":1386,"spans":1387,"direction":932},"Are they offering free breakfast now?",[],{"type":1158,"text":1389,"spans":1390,"direction":932},"Did they change their cancellation policy to be more flexible?",[],{"type":922,"text":1392,"spans":1393,"direction":932},"If a competitor consistently prices higher and still fills rooms, it may indicate they are communicating value more clearly. Looking at reviews, amenities, and content can help you identify what guests respond to. Sometimes, improving content or adding a small perk (like late check-out) can support a stronger price position without major physical changes.",[],{"type":1333,"text":1395,"spans":1396,"direction":932},"4. Use dynamic pricing software to automate the watch",[],{"type":922,"text":1398,"spans":1399,"direction":932},"Manually checking competitor rates is time-consuming and prone to inconsistency. By the time you check multiple websites, early observations may already be outdated.",[],{"type":922,"text":1401,"spans":1402,"direction":932},"Dynamic pricing software can automate parts of this process. Smartpricing monitors your CompSet continuously and tracks rate changes more consistently than manual checks. It can also combine competitor signals with your internal indicators (such as occupancy and booking pace) to support faster, more informed pricing decisions.",[1403],{"start":1351,"end":1404,"type":928,"data":1405},73,{"id":420,"type":56,"tags":1406,"lang":14,"slug":422,"first_publication_date":423,"last_publication_date":424,"uid":425,"url":426,"link_type":24,"isBroken":34},[],{"type":922,"text":1408,"spans":1409,"direction":932},"This kind of automation can help you respond more quickly to market shifts and reduce the operational burden on your team.",[],{"type":1333,"text":1411,"spans":1412,"direction":932},"5. Review your CompSet periodically",[],{"type":922,"text":1414,"spans":1415,"direction":932},"Markets change. A hotel that was a strong rival three years ago may no longer compete as directly, and a new boutique property may open and start targeting your niche.",[],{"type":922,"text":1417,"spans":1418,"direction":932},"Review your CompSet at least twice a year. Ask yourself:",[],{"type":1158,"text":1420,"spans":1421,"direction":932},"Are we still losing guests to these specific hotels?",[],{"type":1158,"text":1423,"spans":1424,"direction":932},"Has our product changed (for example, renovations or a new pool)?",[],{"type":1158,"text":1426,"spans":1427,"direction":932},"Has their product changed?",[],{"type":922,"text":1429,"spans":1430,"direction":932},"If your RGI (Revenue Generation Index) is consistently far above 100, it may be a sign your CompSet is not challenging enough for benchmarking purposes. If your index is consistently low, your set may be too aspirational, or it may point to operational or positioning issues worth investigating.",[],{"type":1333,"text":1432,"spans":1433,"direction":932},"6. Look for compression and displacement",[],{"type":922,"text":1435,"spans":1436,"direction":932},"Your CompSet data can be especially helpful for spotting periods of unusually high demand.",[],{"type":922,"text":1438,"spans":1439,"direction":932},"Watch for dates where competitors appear sold out or priced significantly higher than their norm. This may indicate “compression,” where demand exceeds supply.",[],{"type":922,"text":1441,"spans":1442,"direction":932},"When you see this pattern, you can consider tightening discounting and aligning policies and pricing with the market context. Rather than relying on broad rules, CompSet signals can help you decide when stricter terms and higher rates are more defensible based on the alternatives guests are seeing.",[],"rich_text$e91334da-75af-47e4-9ed1-9f2c54c4947a","CompSet (Competitive Set): meaning, selection and 6 strategies | Glossary","CompSet is the group of hotels you compete with for similar guests. Learn how to choose the right set and read pricing and occupancy signals.",{},{"prev":1448,"next":1452},{"title":1449,"link":1450},"Cancellation policy",{"to":1451},"/en/glossary/cancellation-policy",{"title":1453,"link":1454},"Conversion rate",{"to":1455},"/en/glossary/conversion-rate",1776524640747]