Hoteliers rely on benchmarking to stay competitive. But what if the numbers you’re using are misleading? What if your comp set—the hotels you compare yourself against—isn’t actually a fair reflection of your market position?
Think of it like navigating with a faulty map. If your benchmarks aren’t aligned with your true competitors, you could be mispricing rooms, missing revenue opportunities, and making operational decisions based on bad data. Let’s break it down.
Scenario 1: The Boutique Mismatch
Your boutique hotel is benchmarking against major chain properties.
Your Data Says: We’re lagging behind in occupancy.
Reality Check: Your property offers a unique guest experience, with premium services that chain hotels don’t. Comparing your pricing and performance to theirs leads to unrealistic expectations—and possibly undercutting your own value.
The Fix: A refined comp set that includes similar independent or luxury boutique hotels would provide more relevant data, leading to better pricing and profitability.
Scenario 2: The F&B Blind Spot
You operate a full-service hotel with a thriving food & beverage operation. But your comp set includes limited-service hotels that don’t rely on F&B revenue.
Your Data Says: We’re underperforming in RevPAR.
Reality Check: RevPAR alone doesn’t account for your F&B profitability. Your restaurant and bar drive significant revenue that limited-service properties don’t capture, making a RevPAR comparison meaningless.
The Fix: A smarter comp set that factors in F&B revenue gives you a clearer picture of how your total operation stacks up—and where there’s room for growth.
Scenario 3: The Evolving Market Trap
You set your comp set years ago and haven’t updated it. Meanwhile, the market has changed—new competitors have emerged, guest preferences have shifted, and your property has evolved.
Your Data Says: Our rates are competitive.
Reality Check: Your pricing strategy is based on outdated comparisons. You might be leaving money on the table by not aligning with the right competitors.
The Fix: Regularly reviewing and adjusting your comp set ensures that your benchmarking remains relevant and actionable.
Why It Matters
A well-curated comp set isn’t just a benchmarking tool—it’s a profitability engine. The wrong comparisons can lead to poor pricing, misaligned strategies, and missed revenue potential. But when your comp set truly reflects your competitive landscape, you gain the insights needed to maximize revenue and optimize costs.
So, when was the last time you reassessed your comp set? If it’s been a while, now is the time.
Want to discover hidden revenue opportunities? Talk to us today: [email protected]
About HotStats
HotStats, a Duetto company, is a global data benchmarking company offering specialized performance analysis and a benchmarking tool that helps analyze financial and operational data from a diverse range of hotels globally. This provides hotel owners, operators, and investors with valuable insights into the financial performance of their properties against their competition – an invaluable resource for weighing options and evaluating investment opportunities. For a quick demo, email us at [email protected] or visit www.hotstats.com.
