When is it permissible to change a competitive set?

Changing a competitive set is an important aspect of revenue management and strategic planning in the hotel industry, and the correct answer highlights the flexibility allowed in this process. A hotel may decide to adjust its competitive set at any time to reflect changes in market conditions, shifts in its service offerings, or updates to its target guest demographics. This adaptability is crucial as it enables hotels to remain relevant within their market and ensure they are benchmarking against the correct competitors.

While some hotels may choose to align this change with the beginning of the year—possibly for simplicity in reporting or aligning with annual business planning—it is not a strict requirement. The market dynamics can evolve frequently, and thus, timely adjustments to the competitive set can provide a more accurate context for performance evaluation and strategic decisions.

In contrast, the options that suggest limitations tied to specific circumstances, such as a change in management or hotel affiliation, are too restrictive and do not account for the need for ongoing analysis and adjustment based on competitive market dynamics. The choice to change a competitive set should be based on current market realities rather than a set schedule or particular triggers.