How Hotels Should Do Competition Reviews and Research to Stay Competitive
To stay ahead in a competitive market, hotels need to regularly review what similar properties are doing, how they price, what they offer, and how they respond to guests. This isn’t about copying, it’s about spotting opportunities to improve your own offering. Smart competitor analysis helps you make better pricing decisions, refine guest experiences, and stay aligned with traveller expectations. This guide breaks down exactly how to approach hotel competition research, what to focus on, and which tools to use for practical, ongoing insights.
Competition research is essential for helping hotels remain competitive. By closely examining how similar hotels operate, how they price rooms, highlight amenities, and respond to guest feedback, hotels can adjust their offerings to attract and retain more guests. This process is not about imitation but about gaining insights into what appeals to today’s travellers and identifying opportunities to provide a unique or enhanced experience.
For hotels, competition research enables informed choices that improve guest satisfaction, optimise pricing, and boost direct bookings. By consistently evaluating competitors’ operations, hotels can stay attuned to the market and make strategic adjustments that enhance their appeal and profitability.
Understanding Hotel Competition Research: What It Involves and Why It Matters
In the hotel industry, competition research means examining the strategies, services, and customer interactions of similar hotels. This goes beyond merely viewing competitor websites; it involves a structured analysis of specific areas such as pricing, guest feedback, and amenities. By breaking down each of these aspects, hotels gain valuable insights that can directly improve their own operations.
Key Areas to Focus On:
Pricing Analysis: Reviewing how competitors set room rates and adjust for seasonal changes helps a hotel position itself effectively within the market. This allows hotels to align rates with demand without compromising value.
Amenities Comparison: Understanding the amenities nearby hotels offer, from complimentary breakfasts to room features, enables hotels to enhance their appeal by focusing on in-demand features.
Guest Feedback: Online reviews reveal what guests appreciate most and what they find lacking. This information helps hotels identify areas for improvement, enabling them to meet guest expectations more effectively.
Conducting regular competition research enables hotels to make data-driven decisions that impact their bottom line. By identifying service gaps or unmet needs in the market, hotels can create offerings that attract new guests and foster loyalty. For instance, if competitors offer flexible check-in policies or unique local experiences, a hotel can consider adopting similar features to appeal to travellers looking for these options.
By keeping up with market trends and guest preferences, hotels can confidently adjust strategies, knowing that their decisions are based on solid insights.
Key Areas to Focus On in Competitor Analysis
Effective competitor analysis requires focusing on essential areas that reveal how competitors operate and where opportunities lie. By assessing the following aspects, hotels can make targeted improvements that increase bookings, enhance guest satisfaction, and sharpen their competitive edge.
Pricing Strategies
Understanding how competitors price rooms helps hotels set their rates strategically. This includes observing room rates, promotional discounts, and dynamic pricing during peak periods. For instance, if a nearby hotel regularly adjusts prices based on seasonality or local events, other hotels might consider similar adjustments to stay competitive. Tracking competitor pricing strategies also reveals opportunities to offer value-added packages or flexible pricing models that appeal to different traveller types.
Guest Reviews and Feedback
Online reviews are a valuable resource for understanding guest expectations and identifying gaps in competitor services. By analysing what guests appreciate or find lacking in other hotels, a hotel can make improvements that preempt common complaints and enhance guest satisfaction. For instance, if guests frequently mention cleanliness or check-in efficiency as issues at competing hotels, a hotel can highlight its commitment to cleanliness and fast, seamless check-ins to attract guests who value these features.
Website and Booking Experience
The booking experience can make or break a potential reservation. Evaluating competitors’ websites offers insights into their booking flow, ease of navigation, and overall user experience. Hotels can assess whether competitors offer a smooth, integrated booking process or if the user journey is disjointed. Observing how other hotels handle mobile optimisation, payment options, and clear call-to-action buttons can inform design improvements that reduce drop-offs during the booking process.
Marketing and Branding
Competitor branding and marketing efforts reveal their positioning and guest engagement tactics. This includes analysing loyalty programmes, social media presence, and messaging strategies. For instance, a hotel might find that a competitor’s branding is heavily focused on eco-friendliness or wellness, appealing to a specific segment of travellers. By understanding these branding efforts, a hotel can identify ways to differentiate its own brand or enhance its loyalty programmes to attract and retain guests.
How to Gather Competitive Data Effectively
Gathering competitive data doesn’t have to be overwhelming. With the right methods and tools, hotels can gather valuable insights without burdening their team. Here are practical ways to monitor competitor activity and gather data that can improve performance.
Online Travel Agency (OTA) Monitoring
OTAs like Booking.com, Expedia, and Airbnb provide a clear view of competitor performance, pricing, and guest feedback. Monitoring these platforms offers insight into booking trends, room rates, and promotions that other hotels are implementing. OTAs also host a wealth of guest reviews, making it easy to analyse recurring feedback on competitors. Setting up regular checks on competitor listings helps hotels stay updated on market positioning and guest sentiment.
Website Analysis Tools
Tools like SEMrush and Ahrefs provide valuable data on competitor websites, including traffic, keyword rankings, and backlink profiles. These tools allow hotels to uncover competitors’ SEO strategies, popular landing pages, and key search terms that drive traffic to their sites. This information can guide content and SEO strategies, ensuring a hotel’s website remains competitive and visible in search results. Regular analysis can highlight seasonal trends in keyword demand or shifts in competitors’ online content, informing adjustments to remain competitive.
Guest Feedback on Social Media
Social media platforms, such as Instagram and Facebook, provide insights into guest experiences and competitor engagement strategies. Monitoring guest comments and interactions on competitors’ social media pages can reveal guest expectations, common praises, and complaints. Additionally, tracking how competitors respond to guest comments can inspire improvements in a hotel’s own engagement tactics. Social listening tools, such as Hootsuite or Brandwatch, make it easier to track brand mentions and competitor activities, creating an ongoing stream of insights.
Setting Up Regular Data-Collection Routines
Establishing a routine for gathering competitive data ensures hotels stay informed without requiring constant monitoring. Scheduling monthly or quarterly check-ins to review OTA listings, analyse SEO data, and scan social media feedback keeps information current and actionable. By setting up regular reviews, hotels can make proactive adjustments, avoiding last-minute decisions and allowing time for thoughtful strategy updates.
Step-by-Step Guide to Conducting Hotel Market Research
Conducting thorough market research helps hotels understand their positioning, align with guest expectations, and adapt to changing travel trends. Here’s a step-by-step guide to help hoteliers navigate this process and gain insights that support growth and guest satisfaction.
Step 1: Identify Your Market Position
To determine your hotel’s place in the market, start by evaluating its brand identity and unique selling points. This involves assessing strengths like location, amenities, or specific experiences you offer and comparing them to competitors. Key questions to consider:
What sets our hotel apart in the area?
Which aspects of our brand do guests remember most?
Are we targeting the right audience based on our strengths?
By identifying what makes your hotel unique, you can better communicate these qualities to potential guests, helping you stand out in a crowded market.
Step 2: Assess Market Demand
Understanding demand patterns is essential for adjusting room rates, planning marketing campaigns, and preparing for high and low seasons. To analyse demand effectively:
Check Local Tourism Data: Local tourism boards and hospitality reports often provide insights into visitor numbers, travel patterns, and seasonal peaks.
Use Google Trends: This tool highlights popular search terms related to your area, helping you identify when certain types of travellers are most likely to visit.
Consider Local Events and Conventions: Pay attention to events that bring visitors to your location, as they can significantly impact booking demand.
By aligning your pricing and marketing efforts with demand patterns, you can make your hotel more attractive to travellers at the right times.
Step 3: Understand Target Audience Preferences
Tailoring your hotel’s services to meet the needs of your ideal guests, whether leisure or business travellers, families, or solo adventurers, makes your property more attractive. To learn more about guest preferences:
Segment Your Audience: Use booking data to identify main guest segments (e.g., business travellers, families, couples) and their booking habits.
Analyse Feedback and Reviews: Guest reviews reveal what each audience segment values most. For example, business travellers may prioritise Wi-Fi and meeting spaces, while families look for kid-friendly amenities.
Monitor Competitors' Offers: Reviewing competitor offerings shows how other hotels cater to similar audiences, providing ideas to enhance your own guest experience.
Understanding these preferences helps you fine-tune your offerings, creating a more satisfying experience and building guest loyalty.
Tools for Effective Hotel Competition and Market Research
Reliable tools simplify the research process, offering insights into competitor performance and industry trends. Here’s a look at some recommended tools and resources, with options to suit different budgets and hotel sizes.
Review Platforms
Monitoring guest reviews on platforms like TripAdvisor and Booking.com helps hotels understand their strengths and areas for improvement, as well as those of competitors. These platforms allow you to:
Track competitor reviews for recurring themes or common complaints.
Identify guest preferences, often revealing trends or demands you might not have considered.
Spot opportunities to offer unique amenities or services that address competitor shortcomings.
SEO and Keyword Tools
Tools like Ahrefs, SEMrush, and Similarweb provide insights into competitor website traffic, search rankings, and popular content. These tools help you:
Discover keywords that drive traffic to competitor sites, guiding your content strategy.
Track your hotel’s website performance and understand which pages attract the most visitors.
Monitor competitor ad campaigns, giving you ideas for targeting similar audiences.
Achieving a Competitive Edge through Informed, Ongoing Research
Staying competitive in the hotel industry requires more than keeping an eye on nearby properties; it demands a structured, proactive approach to understanding the market and recognising opportunities. Consistent competition research enables hotels to adjust their strategies confidently, whether that means fine-tuning pricing, enhancing guest services, or refining marketing efforts. By focusing on key areas like pricing trends, guest feedback, and competitor branding, hotels can make data-driven decisions that resonate with guests and set them apart.
The most successful hotels approach competition research not as a one-time task but as an ongoing commitment. Setting up regular check-ins to review the market landscape and adjust strategies based on the latest insights keeps your property agile and responsive. This continuous cycle of monitoring, analysing, and refining strategies helps hotels stay in tune with changing guest expectations and emerging travel trends.
Using these research techniques can help hoteliers face today’s challenges with confidence, knowing that every change is backed by real insights. For those looking to enhance their direct booking processes, RoomStay offers tools that complement a competitive, guest-focused approach, helping hotels deliver a seamless, brand-aligned booking experience that keeps guests coming back.
