What is a competitive set in hotel analytics?

A competitive set in hotel analytics is defined as a group of hotels that share similar characteristics which can be utilized for benchmarking purposes. This includes factors such as the type of service offered, target market, price point, and amenities. By analyzing the performance of these hotels against one another, hoteliers can gain valuable insights into their own operational performance, pricing strategies, and market positioning. This benchmarking helps in identifying strengths and weaknesses relative to the competition and informs strategic decision-making.

Understanding the right competitive set is crucial for effective revenue management, market analysis, and strategic planning. It allows hotels to gauge their performance in relation to comparable properties, facilitating effective positioning in the marketplace.