Stay Ahead of the Competition: Why Your Compset Deserves a Fresh Look Now
- Richard Chandler
- Jan 3
- 5 min read
In the fast-paced world of hospitality, many hotels fall into the trap of treating their competitive set (“compset”) as static—a fixed list of competitors that never changes. In reality, the market is constantly evolving, and your compset should too. Yet, compset reviews often get overlooked, with many properties failing to reassess this critical tool for years. Ideally, your compset should be reviewed at least annually, and the start of the year is the perfect time to do so.
A proactive approach not only helps you stay competitive but also provides invaluable insights into how other properties operate. Revenue managers and general managers should make it a priority to stay at each hotel in their compset, or at the very least, visit them. Experiencing the atmosphere, customer service, and overall guest experience firsthand can reveal whether these properties truly belong in your compset. In some cases, you might find that a hotel you assumed was a competitor doesn’t align with your target market after all.
Your compset is not only about your competitors; it’s also about your own hotel and how it compares.
One often overlooked challenge is the difficulty of objectively judging your own hotel. I’ve always recommended that each employee stay at least one night at the property they work for. While some hotels have policies that strictly forbid employees from spending leisure time at the property, I take the opposite approach. If your employees don’t experience the product you’re selling, how can you expect them to sell it or fully participate in creating that experience for guests?
Consider offering a free night—either as a reward, an incentive, or simply as part of employee training. By giving your team the opportunity to experience your hotel as a guest, you empower them to better understand the atmosphere, amenities, and overall guest journey. The more employees can connect with the experience you’re trying to create, the more effectively they can recreate it in their daily roles.
Why Reviewing Your Compset Matters
Your compset isn’t just a list of competitors—it’s a strategic tool that helps you:
Understand Market Position: Gauge how your property stacks up against competitors in pricing, amenities, and guest experiences.
Identify Gaps: Spot areas where you can outshine competitors, whether through unique offerings or untapped markets.
Monitor Trends: Stay informed about innovations or changes in your local and broader hospitality markets.
Optimize Pricing: Align your rates with market demand while ensuring value for your guests.
By revisiting your compset regularly, you ensure your strategies stay aligned with real-time market conditions.
When Should You Review Your Compset?
While compset reviews are traditionally part of annual planning, there are key times when a refresh is particularly valuable:
Post-Peak Seasons: After busy periods, like the holidays, to analyze performance trends and adjust for upcoming cycles.
Market Shifts: When new competitors enter the market or existing ones make significant changes.
Property Updates: If you’ve recently completed renovations, added new amenities, or rebranded.
Economic Changes: When broader economic conditions impact travel behaviors and demand.
How to Refresh Your Compset
Reassess Competitor Relevance:
Are your current competitors still targeting the same audience as you?
Have new competitors emerged, or have existing ones changed their positioning?
Analyze Key Metrics:
Pricing: Compare average daily rates (ADR) and revenue per available room (RevPAR).
Guest Sentiment: Review online reviews and ratings for strengths and weaknesses.
Offerings: Examine amenities, packages, and unique selling points (USPs).
Expand Beyond the Obvious:
Consider indirect competitors like vacation rentals or co-working spaces that may attract similar guests.
Include properties that cater to new demographics or emerging trends, such as wellness-focused stays or eco-friendly hotels.
Utilize Data Tools:
Leverage platforms like STR, Rate Insight, or AirDNA for robust data on competitor performance and market trends.
Combine this with internal data for a comprehensive picture.
Engage Your Team:
Involve staff members who interact with guests to gather insights about what competitors are doing differently.
Host a brainstorming session to identify new opportunities based on compset findings.
Experience Competitors Firsthand:
Stay at each hotel in your compset to assess their customer service, atmosphere, and overall guest experience.
If staying overnight isn’t feasible, visit the property to get a feel for its operations. After experiencing the property, you may discover that it’s not truly a competitor or that it aligns with a different market segment. Don’t be afraid to talk to your competitors’ guests to learn more about where they are from or why they chose that hotel.
Turning Insights Into Action
Once you’ve refreshed your compset, it’s time to put the insights to work:
Pricing Strategy: Adjust rates to stay competitive while reflecting your value proposition. If you’re considering changing a competitor in your compset, start by pulling the old and new hotels’ rates for 365 days using a rate shopping tool or web scraper. Analyze the difference between the two hotels—how far apart are their rates? How do their rates compare to yours? Understanding these gaps will help you determine whether the new hotel aligns better with your market and strategy.
Marketing Campaigns: Highlight unique offerings that differentiate you from competitors. Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to better understand your market position relative to your compset. Identify what makes your property stand out (strengths), areas where competitors excel (weaknesses), untapped opportunities in the market, and external challenges such as new competitors or economic conditions. This comprehensive evaluation will provide a roadmap for crafting impactful campaigns that leverage your unique advantages while addressing potential gaps.
Guest Experience Enhancements: Dive deeper into your compset to identify areas where your property can excel. Are competitors offering unique amenities like personalized welcome packages, tech-forward solutions, or wellness-oriented services? Consider how you can adapt these ideas to fit your brand. To take it further, gather feedback from your guests and team about desired improvements. Use these insights to implement services that not only match but surpass competitor offerings. By staying attuned to both market trends and your guests’ evolving needs, you’ll create a standout experience that drives loyalty and positive reviews.
Staff Training: Share findings with your team to align efforts with market demands. Start by conducting workshops or training sessions to break down the insights from your compset analysis. Use real-world examples from competitors to illustrate key points and foster a deeper understanding of market positioning. Provide your team with actionable strategies they can implement in their roles, such as improving service delivery, refining upselling techniques, or enhancing guest engagement. Encourage ongoing dialogue by creating opportunities for staff to share feedback and insights they gather from their day-to-day interactions with guests. This collaborative approach not only ensures alignment with market demands but also empowers your team to contribute meaningfully to your property's success.
Final Thoughts
Your compset is not just a benchmark—it’s a powerful tool that guides your property’s strategic direction.
By proactively revisiting and refining your compset, you gain insights into market dynamics, guest expectations, and your own property’s performance. From pricing strategies to guest experience enhancements, every decision informed by your compset can help you stay competitive and innovative.
As you implement these changes, remember the importance of collaboration—whether it’s involving your team, analyzing guest feedback, or learning directly from your competitors. By maintaining agility and an ongoing commitment to improvement, you’ll not only meet but exceed market demands, ensuring long-term success for your property as you navigate 2025 and beyond.
To learn more about the author of this article, visit www.upturnhotelconsulting.com
コメント