Get a watermark-free, fully customizable competition study in our business plan for a hotel
In the dynamic world of hospitality, understanding the competitive landscape is crucial for the success of your hotel.
This blog post will guide you through a systematic approach to conducting a competition study for your hotel. We'll cover how to identify your main competitors, both direct and indirect, and how to assess their strengths, weaknesses, and strategies. With these valuable insights, you can refine your hotel's offerings and stand out in a bustling industry.
If you're looking for a ready-made competition study that's fully customizable, be sure to check out our hotel business plan template designed to help you get ahead of the game.
What is exactly a "competition study"? Should you make one for your hotel?
A competitor study in the context of a hotel involves a detailed examination of the other hotels and lodging options that you're competing against.
This can include direct competitors, such as hotels in the same location and price range, to indirect competitors, like Airbnb rentals, hostels, or bed and breakfast establishments.
The goal is to gain insights into their services, amenities, customer satisfaction levels, pricing strategies, and marketing efforts to identify where your own hotel can excel or improve.
Why do hotel owners conduct competitor studies? Simply put, it's because being informed gives you an edge.
Knowing the competitive landscape enables you to tailor your hotel's offerings. For example, if you find that most local hotels don't offer complimentary breakfast or free Wi-Fi, these could be services you provide to stand out. Or if you notice a gap in the market for pet-friendly accommodations, that could be a niche you exploit.
The advantages of a comprehensive competitor analysis, like the one you'll discover in our business plan template tailored for hotels, are extensive. It can prevent you from making the same mistakes as your competitors and help you to identify unmet needs in the market. It can spark innovation in your service offerings, guest experiences, marketing strategies, and even operational efficiencies.
Furthermore, understanding who you're up against can inform your pricing and positioning in the market. It also prepares you to adapt quickly to changes in the industry, keeping you competitive and proactive.
Should you conduct a competitor study if you're embarking on a new hotel venture? Absolutely.
Launching a hotel without a grasp of the competitive environment is akin to navigating without a map. A competitor study sheds light on the terrain, aiding you in overcoming obstacles and capitalizing on potential advantages. It's a crucial element of your business planning, setting the stage for a strategic approach that aims not just for market entry, but for market leadership.
Is a competitor study beneficial for you? Undoubtedly, especially if you want to make savvy decisions that will distinguish your hotel in the marketplace. Whether it's carving out a unique selling point, pricing your rooms appropriately, or choosing the most impactful marketing tactics, a competitor study equips you with the knowledge to proceed with assurance.
It's not merely about tracking what the competition is doing; it's about figuring out how you can do it better or differently to attract and retain guests.
How to conduct a competition study for your hotel?
To conduct a competition study for your hotel, start by gathering information on local competitors, focusing on their room types, pricing, amenities, customer reviews, and marketing strategies.
Next, compare these elements with your hotel to pinpoint your unique selling propositions and opportunities for enhancement.
We offer a detailed competition study template that you can customize with your data in our business plan for a hotel.
To streamline the process, here's a 10-step action plan to create a meaningful competition study for your hotel.
| Step | Action | Details |
|---|---|---|
| 1 | Identify your competitors | List nearby hotels and accommodations that target a similar market. |
| 2 | Analyze their room and service offerings | Compare their room types, amenities, and additional services to yours. |
| 3 | Evaluate their marketing strategies | Examine their social media, advertising campaigns, and promotional activities. |
| 4 | Assess their customer service | Read through customer feedback and reviews to assess service standards. |
| 5 | Study their visual branding | Analyze their branding elements like logos, decor, and overall aesthetic. |
| 6 | Check their online presence | Review their website functionality, search engine optimization, and booking process. |
| 7 | Understand their pricing strategy | Look into how they price their rooms and any special rates or packages. |
| 8 | Monitor their customer engagement | Observe their interaction with guests on social media and review platforms. |
| 9 | Identify their strengths and weaknesses | From your analysis, determine where they outperform or fall short. |
| 10 | Leverage findings to improve your hotel | Apply the insights to enhance your offerings, marketing, guest experience, and more. |
What should be included in a competition study for a hotel?
Here is a table listing 10 elements that could be part of a competition study for a hotel.
| Name of the Element | Description |
|---|---|
| Market Position | The hotel's rank or status in the local market compared to competitors, often based on quality, price, and brand reputation. |
| Room Types and Amenities | Variety and quality of rooms available, including suites and standard rooms, as well as amenities such as Wi-Fi, room service, and in-room technology. |
| Pricing and Value Offers | Room rates and pricing strategies, including seasonal rates, discounts for loyalty members, and package deals. |
| Target Market | The specific guest segments the hotel targets, such as business travelers, families, couples, or tourists. |
| Location and Proximity | Hotel's location relative to popular attractions, business districts, and transportation hubs, as well as its accessibility and parking facilities. |
| Marketing and Branding | Strategies used to promote the hotel, including branding efforts, online presence, and use of social media and travel platforms. |
| Guest Reviews and Reputation | Online reviews and ratings from guests on platforms like TripAdvisor, Booking.com, and Google, reflecting the hotel's reputation. |
| Service and Hospitality | The level of customer service provided, from the efficiency of check-in to the attentiveness of the concierge and housekeeping staff. |
| Facilities and Services | Additional hotel facilities such as spas, gyms, pools, conference rooms, and dining options that enhance the guest experience. |
| Health and Safety Protocols | Measures taken to ensure guest safety and cleanliness, including sanitation practices and adherence to local regulations, particularly in light of health concerns. |
Examples of competition studies for a hotel
Below are three different (very concise) examples of competition studies tailored for a Boutique Hotel, a Business Hotel, and an Eco-Resort.
If you need something more developed, go check our business plan template for a hotel.
Boutique Hotel Competition Study
| Competitive Factor | Description |
|---|---|
| Design and Aesthetics | Unique architectural features, stylish interiors, and personalized room decor. |
| Service Quality | Highly personalized service, attention to guest preferences, and exclusivity. |
| Location | Prime location in trendy neighborhoods or secluded areas offering privacy. |
| Amenities | Luxury amenities such as spa services, gourmet dining, or curated experiences. |
| Price Range | Premium pricing reflecting the bespoke experience and high-end services. |
| Unique Selling Proposition (USP) | Themed rooms, historical significance, or partnerships with local artists and designers. |
Business Hotel Competition Study
| Competitive Factor | Description |
|---|---|
| Business Facilities | State-of-the-art meeting rooms, business centers, and high-speed internet access. |
| Location | Conveniently located near business districts, airports, or conference centers. |
| Efficiency | Streamlined check-in/check-out processes, efficient room service, and responsive staff. |
| Accommodation Quality | Comfortable, functional rooms with workspaces and ergonomic furniture. |
| Price Range | Competitive pricing with business-friendly packages and loyalty programs. |
| Unique Selling Proposition (USP) | Executive lounges, shuttle services, and corporate event planning. |
Eco-Resort Competition Study
| Competitive Factor | Description |
|---|---|
| Sustainability Practices | Eco-friendly operations, use of renewable energy, and waste reduction measures. |
| Natural Setting | Location in pristine natural environments, offering outdoor activities and wildlife experiences. |
| Eco-Friendly Amenities | Organic products, nature-based spa treatments, and locally sourced food. |
| Community Engagement | Support for local communities, cultural immersion, and responsible tourism practices. |
| Price Range | Varied pricing, often with a premium for the unique eco-experience and conservation efforts. |
| Unique Selling Proposition (USP) | Educational programs, conservation partnerships, and green certifications. |
You can also read our articles about:
- how to fill a Business Model Canvas for your hotel
- how to segment the customers of your hotel
- how to elaborate a marketing strategy for your hotel
- how to open a hotel (guide)