ManagementMarketingNewsNews In Brief

How a hotel can compete with everyone (including itself)

A true competitor is a property that competes with you in most of the same segments, not necessarily the property next door

As we emerge from the pandemic, it is more important than ever that Australian hoteliers understand where their property sits in its competitive environment.

Hotels have generally determined their competitors based on proximity to their property.

Our latest AccomNews print issue is available now. Read it HERE

However, as international travel has returned and guests today consider leisure options based more on the type of travel (beach resort or urban experience) across a whole region rather than a single destination, the property next to you is not necessarily your direct competitor.

In the case of resorts, it may be properties in Phuket, Bali, or the Whitsundays that are all competing for the same guests.

A true competitor is a property that competes with you in most of the same segments, which are generating demand for your property. This might have changed drastically with the pandemic and will change again as China’s outbound tourism markets recover to a reported two-thirds of 2019 traveller volumes this year, with around 110 million border crossings out of the country.

Defining a proper competitor set has always been vital to determine price positioning. Hoteliers need to keep an eye on their competitors’ pricing.

They should look out for hotels making pricing actions, like increasing their corporate rate during the week or leisure rate on the weekends, that would force them to respond. It’s important for a hotel to know how their own pricing compares, and which hotels near their own property are also forced to respond when they take a pricing action.

How to compete against yourself

While understanding the competition is crucial, it’s also important to improve upon past performance, and for a hotel to compete with itself to define strategies and commercial success.

This can be undertaken by focusing on:


Hotels need to use holistic data insights to see if their pricing makes sense not only against their current competitor set but also their future competitor set as demand changes. This will enable management to forecast realistic future goals that will grow revenues over time.


The best client service is no match for an outdated product. A hotel can have the friendliest front desk, the most resourceful concierge, and an eager sales team, but without a polished product, any hotel will struggle. Not every hotel will be a five-diamond property, and not every hotel should even attempt to strive for that. Each hotel has its own specialty, so it’s up to each hotel to be the best in its own category.


All hotels should provide guests with a unique and memorable experience. For instance, if a property is pet-friendly, a furry hotel mascot with paws and a wagging tail may be a way to advertise that.

Hotels can also partner with local retailers to create pop-up stores within your hotel and bring artists in to create murals or bespoke pieces of art unique to its property.

These activities will help connect guests with the local community and offer up social media opportunities to help with organic hotel promotion.

AdobeStock By zapp2photo


It’s not just about making sure a hotel has a friendly partnership with OTAs and travel agencies today. Don’t overlook offline distribution channels, especially during these unprecedented times when customers might prefer to establish direct contact with a hotel for reassurance about the details of their stay.

Stay competitive, plan for the future

Identifying who hotel guests are, who the competition is, and how a property is performing relative to other hotels in the market is a significant challenge today.

A property that monitors its competitors and benchmarks (even against itself) will help ensure that a hotel remains competitive and attracts business over the long term.

Written by Joyce de Kruif, Principal Industry Consultant, APAC, IDeaS Revenue Solutions’

Related Articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Back to top button
WP Tumblr Auto Publish Powered By :
Would love your thoughts, please comment.x