Which option is NOT a valid reason for a hotel to establish an additional competitive set?

Establishing competitive sets is crucial for hotels to evaluate their performance against others in the market. The purpose of competitive sets is to gather insights and data that can inform pricing, marketing strategies, and operational decisions.

The first choice discusses discrepancies in the perspectives of different stakeholders, such as chain versus management companies, which impacts how competitive sets are formed. The second option highlights the value of having a local competitive set for geography while also recognizing unique features that might differentiate a property, suggesting strategic segmentation. The fourth option addresses the importance of distinguishing between varying business types, like weekday versus weekend or group versus transient, which can directly affect revenue strategies and occupancy rates.

In contrast, establishing one competitive set that is easily surpassed and another that is realistically challenging would undermine the fundamental purpose of analyzing competitive performance. A hotel aims to utilize competitive sets to benchmark performance accurately and motivate strategic improvements. Having one set that is simply easy to outperform does not contribute to a constructive analysis of the market landscape and does not encourage growth or competitive awareness. This makes it an invalid reason for forming additional competitive sets.