Hotel Competitive Set Analysis

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How to be better than your competition, beat your competition & know what's going on in your market.

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Hotel Competitive Set Analysis

  1. 1. Competition Competitive Set Intel • How to obtain information about your competition S.W.O.T Comp Set Analysis • Comparisons between you & your competition Business/Marketing/Action Plans • Goals & Tasks to keep your plan of attack on track! Parking Lot Sweeps • New leads & effective ways to find new business
  2. 2. Competitive Set Intelligence Definition: • The focus is on the external business environment. • A process of gathering information, converting it into intelligence and then utilizing this in business decision making. • The use of public sources to locate and develop information on competition and competitors. Goals of Competitive Intelligence: •Detecting competitive threats •Eliminating or lessening surprises •Enhancing competitive advantage by lessening reaction time •Finding new opportunities Primary Objective for Competitive Intelligence: The objective of competitor intelligence is not to steal from a competitor. It’s to gather information in a systematic, overt (i.e., legal) manner that when collated and analyzed provides a fuller understanding of a competitor’s structure, culture, behavior, capabilities and weaknesses.
  3. 3. Competitive Set Intelligence  Be Creative, Think ‘outside the box’  How would a prospective guest look for a hotel?  Learn 'who' your competitor's Top Clients are  Are your competitors more Corporate or Leisure oriented?  What specials do they offer? (Can you match)  Daily Call A Rounds: Calls to surrounding hotels to check their occupancy & rate. (Standard in most areas)  These calls will give you an idea of how the market is currently performing & can help with rate negotiations.  Set up a hotel visit & see what your competitor's property looks like.  Visit their website, check rates, check amenities  Revisit your competitive set analysis sheet (next slide)
  4. 4. Comp Set Analysis o Comp Set Analysis o Research your market & competition o Lists of how you match up against your competition (Analysis Chart) o Main sources of Business o Update Comp Set Info o New Properties to the area o Any changes in the market o Amenities (You vs. Comp) o Comp Set’s Top Clients o Advantages/Disadvantages
  5. 5. Comp Set Analysis Who are your main competitors? • Make list of comparisons • How do you match up? • Location (Top Attractions) • List of Amenities (Condition, Size) • Top Accounts
  6. 6. S.W.O.T Analysis A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.
  7. 7. Strategy Implementing strategy: Getting a game plan together (ahead of time) is crucial! EXECUTION! 80% of the battle is executing your strategy. Pick up the phone, get off your butt! Market analysis The overall market: Understand seasonal demand & the level of rate flexibility. Changes in the market: New projects, construction & events will help when posting rates. Market segments: Leisure, Corporate, Group/Tour, Government, University (see next page) Target market and customers: What is your hotel’s specialty? (Family, Corporate or Leisure) Customer characteristics: Is your hotel more Group, Corporate or Construction-Oriented? Customer buying decisions: Are there a lot of hotels near you? What are your key selling points? Competitive analysis Industry overview: What is the primary demand in your market? (University, Vacation, Business) Nature of competition: Do you work with certain hotels in area (same brand) or is WAR? Changes in the industry: Are there large projects starting (or ending) in the area? Primary competitors: Competitive Set, specific hotel that you are constantly competing against. Competitive products/services: How do you compare (amenities, service, location) Be HONEST! Opportunities Threats and Risks: New Hotels being built, more competition & partnerships. S.W.O.T Analysis
  8. 8. Comp Set S.W.O.T Analysis
  9. 9. Action Plans: S.M.A.R.T Goals Action planning is a process which will help you to focus your ideas and to decide what steps you need to take to achieve particular goals that you may have. It is a statement of what you want to achieve over a given period of time.
  10. 10. Action Plans: S.M.A.R.T Goals
  11. 11. Action Plans: S.M.A.R.T Goals
  12. 12. Marketing/Business Plan Revisit Business Plan o Monthly/quarterly basis o Tracks Performance o Tracks progress
  13. 13. Marketing/Business Plan Business Plan: A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.
  14. 14. Comp Set
  15. 15. Comp Set Parking Lot Sweeps Pick 4-6 Hotels (preferably in your comp set) Parking Sweeps 1-2 times per week (after 7pm) Monday – Thursday (more worker truck leads) Take a quick picture & edit later Make sure you follow up on leads IMMEDIATELY! Mention you ‘noticed’ their vehicles in the area Don’t say you saw them at ‘X Hotel’ Be able to explain why you’re contacting them It’s not ‘stealing’ if you’re just viewing public areas Keep an excel list of leads to track (example next page)
  16. 16. Comp Set Parking Lot Sweeps List of Leads from 1 Night Less than 1 Hour (5 Hotels) Parking Sweeps: • Recognize repeat vehicles • Understand why they’re in town • Immediately research that company & get started! Recruit Others: (Staff) • Simple as being observant while driving around town. • Ask staff members to look for out of town vehicles. • ‘Ask’ for their input & ideas
  17. 17. • http://en.wikipedia.org/wiki/Competitive_intelligence • http://www.evisionworldwide.com/competitor-analysis-for-hotels/ • http://www.va-interactive.com/inbusiness/editorial/bizdev/ibt/analyze_comp.html • http://www.xotels.com/en/revenue-management/revenue-management-book/competitor-analysis • http://www.itsincognito.com/services_competitor_analysis.php • http://en.wikipedia.org/wiki/Competitor_analysis • http://uhaweb.hartford.edu/katrichis/Mktg_Pln/SA_mktpln_example/HTML%20Files/expsaiiic.htm • http://www.hotelcompete.com/journal/120516_hotel-comp-set-analysis/ • http://smallbusiness.chron.com/four-major-types-competitive-strategies-24974.html • http://www.hotelnewsnow.com/searchresults.aspx?q=+competitive+set • http://www.lodgingmagazine.com/PastIssues/PastIssues/Comp-Sets-Revisited-2343.aspx Helpful Website Links

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