Conducting a competitive analysis is essential in understanding your position in the market. Comparing your performance with the market can help you make informed decisions and assess your progress. To start, you need to identify who your competitors are and how to best benchmark your hotel performance. This article will provide you with useful tools to get you started.
Defining the Market Position in the Hotel Industry
Within the travel and hotel industry, a hotel can define the market it is operating in from the guest’s perspective by considering the city, region, or touristic destination. This provides a straightforward method for defining the market in which the hotel operates. It is recommended to examine the full market to get an understanding of the market position. This involves considering all levels of competition, including brand competition, product competition, generic competition, and need competition.
Brand Competition: The Amsterdam hotel market is highly competitive with a variety of global hotel brands such as NH Hotels, Marriott, Hilton, and Hyatt competing for customers.
Product Competition: Several hotels in Amsterdam hotels such as Hotel V, Hotel Estherea, Andaz Amsterdam and Hotel Pulitzer offer different star ratings from 1-5 stars which provides guests a clear indication of the type of hospitality experience they can expect.
Generic Competition: Hotels, B&Bs, hostels, and Airbnb rentals are all competing for the same pool of customers in Amsterdam.
Need Competition: Amsterdam hotels have to compete for customers in the luxury, mid-range, and budget categories. Often used categories within hotel industry are Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale and Economy.
Additionally on above guest reviews, scale and location within the defined market can be used to define competition in the market.
MinersRepublic uses a combination of above methodologies to set a competitive set. A last but not less important element is the trackability of the performance of the competitive set. There are several benchmarking companies supporting the industry with key metrics to understand market share. Thanks to these metrics, MinersRepublic is able to generate a comprehensive analysis about the competitive landscape and set the best competitive set for our clients.
These analysis provide insights in following subjects:
- Competitor profiles: Detailed information about the size, offerings, and location of each competitor.
- Room rates: A comparison of the hotel’s room rates against those of its competitors.
- Services & amenities: An understanding of the services and amenities offered by each competitor.
- Customer reviews: An analysis of customer reviews and ratings for each competitor.
- Social media presence: A review of each competitor’s presence on social media.
- Target audience: An understanding of the target audience for each competitor.
- Advertising & promotions: An analysis of each competitor’s advertising and promotional strategies.
- Market share: An analysis of each competitor’s market share in the region.
- Location: An understanding of the location of each competitor.
- Market Performance: An analysis of market share based on MPI, ARI and RGI indicators.
Leverage the Power of Competitive Analysis for Your Hotel
Conducting a competitive analysis is a necessary step for any hotel to understand its place in the market. By carefully examining the competitive landscape and benchmarking performance, a hotel can make informed decisions and assess its progress. With the insights gained from a competitive analysis, hotels can better understand their position and make informed decisions that will help them to succeed.
Take the first step towards gaining a competitive edge by contacting MinersRepublic today! Our experienced team can help you identify, select, and trace your competition so that you can achieve success in your industry. Don’t wait – contact us now and get the competitive advantage you need!
