Competitors within the hospitality industry are groups of companies that offer similar products or services and compete for the same target market. In the hospitality industry, this typically includes hotels, resorts, B&Bs, vacation rentals, and other accommodations for travelers.
By researching competitors' products, pricing strategies, customer reviews, and overall performance, companies can benchmark themselves and gain insight into their strengths and weaknesses. This analysis helps companies effectively position themselves, identify areas for improvement, and develop strategies to attract and retain customers in a competitive market.
Establishing a group of competitors involves identifying and analyzing companies that compete for the same customers in the same geographic area or that offer similar amenities or services. This process helps companies assess market trends, understand industry trends, and make informed decisions regarding pricing, marketing strategies, and differentiation.
When setting up competitors within the hospitality industry, it is important to follow certain guidelines to ensure accuracy and effectiveness. Here are some do's and don'ts to help you do it right.
What to do:
Clearly define your target market – Understand who your customers are, their preferences, and the specific segment of the market you want to target. This will help you identify competitors who serve similar customer needs.
Conduct thorough research – Gather as much information as possible about your potential competitors. Look at the services we offer, pricing strategies, quality standards, and customer reviews. This will give you insight into their strengths and weaknesses.
Consider both direct and indirect competitors: Identify businesses that directly compete with your hospitality offering, such as hotels and resorts in the same location or with similar amenities. Additionally, consider indirect competitors such as vacation rentals and B&Bs that can offer travelers alternative options. This is also known as primary and secondary conflict sets.
Analyze your competitors' online presence: Examine your competitors' websites, social media platforms, and online reviews to understand how they engage with customers and present their products. This helps highlight areas where you can differentiate.
Visit competitors incognito: Visit competitors anonymously and experience first-hand what they have to offer. Focus on the overall customer experience, amenities, and unique features and services you offer. This is also known as a mystery guest experience.
What not to do:
Don't rely solely on rankings and ratings: While rankings and ratings provide some insight, they don't always accurately reflect the reality of your competitors' products. Online rankings and ratings only cover one part of your business. Perform comprehensive analysis to see the big picture.
Don't limit yourself to local competitors. Consider domestic or international competitors that may attract a similar target market. In today's globalized world, travelers have a wide range of options available to them.
Don't ignore customer feedback: Guest feedback is a valuable resource for understanding your competitors' strengths and weaknesses. Pay attention to online reviews, customer complaints, and suggestions and identify areas where you can outperform them. It may be worth investing in a guest review management platform for even more insight.
Don't ignore industry trends. Stay up to date with the latest trends and innovations in your industry to stay ahead of your competitors. Look for opportunities to incorporate new technologies and services that improve the customer experience.
Don't underestimate the importance of differentiation. To attract customers, it's important to differentiate your product from your competitors. Identify your unique selling points, such as superior customer service, special amenities, and personalized experiences.
By understanding competitors' strengths, weaknesses, and customer perceptions, lodging properties can better differentiate themselves, optimize their offerings, and deliver a superior guest experience. This knowledge also helps companies identify gaps in the market or areas where they can outperform their competitors, leading to better strategic decisions and increased profitability.
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