The four key considerations when creating a Competitive Set are?

When creating a Competitive Set, it is essential to consider the demographics and characteristics of potential competitors to ensure an accurate comparison. The correct answer identifies Participation, Proximity, Pricing, and Product as the four key considerations.

Participation refers to the involvement of competitors in the particular market or segment the hotel is targeting. This helps identify which hotels are relevant for comparison and can influence market share analysis.

Proximity is crucial because it addresses the geographical closeness of competitors. Understanding how nearby hotels compete based on location, amenities, and market positioning informs strategic decision-making.

Pricing is another significant factor in creating a Competitive Set. It allows hotel operators to assess how their rates align with competitors, which is important for pricing strategies and value proposition analysis.

Lastly, Product refers to the features and services offered by competing hotels. Evaluating the product allows for a comprehensive understanding of how a hotel differentiates itself in terms of quality, branding, and guest experience compared to its competitors.

These four elements together provide a structured approach for evaluating competitors, enabling effective strategy formulation to enhance market positioning and attract target customers. The other choices include terms that, while related to hotel operations or market analysis, do not encapsulate the comprehensive view required for a Competitive Set.