Understanding your competitors is just as important as understanding your guests. Without a clear picture of what other hotels in your area or category are offering, you risk falling behind in pricing strategy, amenities, guest experience, and brand positioning. That’s where hotel competitor analysis comes in.
This guide will walk you through what hotel competitor analysis is, why it matters, and how to execute one effectively. Whether you manage a boutique hotel or a multi-property chain, these strategies will help you identify growth opportunities and build a stronger competitive edge.
What Is Hotel Competitor Analysis?
Hotel competitor analysis is the structured process of identifying, evaluating, and monitoring hotels that target the same customer segments as your property. It involves comparing pricing, services, location, guest satisfaction, and more to assess how your hotel stacks up in the market.
It’s not just about knowing who’s next door. It’s about understanding how their offerings, marketing, and guest experiences influence your potential customers’ decisions, and how you can outperform them.
Why Hotel Competitor Analysis Is Crucial
- Optimize pricing strategies: Ensure your rates are competitive while protecting your margins.
- Understand your value proposition: See how guests perceive your hotel compared to others.
- Refine marketing efforts: Discover what messages and channels resonate in your niche.
- Drive service improvements: Identify gaps and innovate in guest experience.
How to Perform a Hotel Competitor Analysis
1. Identify Your Competitor Set
Start by selecting 3 to 5 properties that directly compete with you. Consider:
- Location: Proximity to your hotel or shared tourist zones.
- Hotel type and size: Boutique vs. chain, room count.
- Star rating and pricing: Stay within a similar classification.
- Guest profile: Are they targeting families, solo travelers, or business guests?
Avoid only considering direct geographical neighbors. Your true competitors may serve your audience digitally even if they are farther away.
2. Evaluate Key Metrics
Pricing
Compare daily rates across seasons using OTAs and rate shopper tools. Look for patterns around holidays, events, or low seasons.
Amenities and Services
Does your comp-set offer:
- Free breakfast?
- Late checkout?
- Wellness programs?
- Contactless check-in?
Make a list of what guests expect in your segment and what you might be missing.
Reputation and Reviews
Analyze guest ratings across Booking.com, Google, and TripAdvisor. Note not only scores but recurring themes in both praise and complaints.
Website and Digital Presence
Review how competitors present themselves online:
- Do they offer direct booking discounts?
- How fast and mobile-friendly is their website?
- Are they active on social media or running ads?
3. Use Strategic Frameworks
SWOT Analysis
Map out Strengths, Weaknesses, Opportunities, and Threats for both your hotel and your competitors. This offers a holistic view of internal and external forces affecting your position.
Porter’s Five Forces
Understand the bigger picture:
- How strong is customer bargaining power?
- Are new competitors entering the market?
- What is the risk of alternative accommodations (e.g., Airbnb)?
These frameworks help translate insights into action.
4. Tools That Can Help
Don’t rely on spreadsheets alone. Leverage:
- Rate shopper platforms (like Cloudbeds PIE or OTA Insight)
- Channel managers and PMS systems that offer market insights
- Google Alerts for tracking competitor updates
- POS data for spending behavior analysis
Strategies to Apply After Your Analysis
- Adjust rates dynamically based on competitor movements and your occupancy.
- Differentiate through service: If everyone offers the same amenities, what unique experience can you offer?
- Invest in reputation: Encourage reviews, respond publicly, and improve based on feedback.
- Double down on what works: If your location or breakfast consistently scores high, highlight it in your marketing.
Conclusion
Performing a hotel competitor analysis isn’t just a one-time task—it’s an ongoing strategy that informs pricing, service, and growth decisions. By identifying your true competitors, analyzing their strengths and weaknesses, and using the right tools, you position your hotel to outperform the market and exceed guest expectations.
At Chekin, we help hotels not only automate guest management but also compete smarter by enabling data-driven decisions. Use this guide as your foundation and start building a more competitive, profitable hotel business today.
Discover how Chekin can help you automate check-in, stay compliant, protect your property, and boost revenue—saving you 87% of your time and earning more from every booking.
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