Everything You Need to Know About Hotel Competition Analysis
Do you want to make your hotel business successful amidst rising competition? Then, it would be best to educate yourself about the hospitality industry’s competition. A hotel industry competitive analysis is central in the hotel business because your hotel’s progress relies upon getting things right, like timing, pricing strategy, and focusing on the right crowd.
A hotel competition analysis begins by understanding who your opposition is in the surrounding areas, who are offering similar items and services as your hotel business for reputation management, creating a solid plan of action, and building a strong digital presence.
To complete the ideal hotel analysis, you should first set your objectives, figure out what information you want, identify your biggest competition in the hotel industry, gather and break down the information, and set up landmarks to gauge your performance.
In this article, we’ll talk about hotel analysis at length, the reasons it is significant, and how to devise a system to assist you in doing better than your competitors.
What Is Hotel Industry Competitive Analysis?
A hotel competition analysis evaluates your rivals’ pros and cons to trace your strategic footing in the hotel industry.
Hoteliers use it to assist with benchmarking the neighborhood market to find their upper hand and optimal estimating position.
It also requires looking at a similar region and cost range and considering their services or products in contrast to your items. This process will assist you in maneuvering future uncertainties in your favor.
By studying the hospitality industry’s competition, you can look closely at the services they offer, the costs and different elements that will assist your hotel business in determining how well you are doing against the competition.
Why is Hotel Competition Analysis Important?
Conducting a hotel industry competitive analysis has several benefits, including:
1. It helps you beat the competition
Examining the competition in the hotel industry is critical to taking down the opposition. Once you have completely understood who your rival is, what they specialize in, and how they offer it, it helps you devise a better strategy to gain a competitive edge over them.
This training won’t just assist you with bettering your services but also help you formulate a versatile strategy for future expansion.
2. It assists in figuring out your business’s USP
In today’s times, there is a lot of competition in the hospitality industry. Without having a unique selling price (USP), it is hard to survive the competition. Your USP is what makes your potential customers choose you over your competitors.
A hotel analysis gives you a clear idea of your competitor’s strengths and weaknesses. You can cash on their weaknesses by turning them into your USP.
Therefore, conducting an in-depth hotel competition analysis can help you figure out your Unique Selling Point (USP) and, in turn, improve your brand value and reputation.
3. It helps in devising appropriate pricing strategies.
A business can only survive in the hospitality industry with the right pricing strategy. As an entrepreneur, you must know that pricing is one of the main parts of your business.
Your hotel business could face major losses if you don’t value your items or services accurately. However, most entrepreneurs need to realize that your pricing strategy can also act as a strong development tool.
When utilized accurately, pricing strategies can assist you with expanding deals and benefits without spending more on advertising or lowering your profit margins. Therefore, it is a method for expanding your business without forfeiting profits.
You can devise a profitable competitive pricing strategy by indulging in hotel analysis. Competitive pricing acts as the stepping stone toward dynamic pricing.
It also has many other benefits, including increased traffic, improved profit margins, and prevention of market share losses.
Thus, conducting a hotel analysis can help you devise accurate pricing strategies that work wonders for your hotel business.
How to Conduct Accurate Hotel Competition Analysis?
More than simply conducting a hotel analysis, an accurate hotel competition analysis is required. Precision and accuracy result in satisfactory results.
Therefore, here are the following ways in which you can conduct a correct hotel analysis:
1. Begin with a hotel SWOT analysis
Hotel SWOT analysis should be the first and foremost step in gauging the competition in the hotel industry. For the uninitiated, SWOT stands for strengths, weaknesses, opportunities, and threats.
While the strengths and weaknesses largely depend on internal factors, opportunities and threats are characterized based on external factors. Threats are the elements that your competitors have which you might lack.
On the other hand, opportunities are the technological advancements or social norms that have the ability to turn the tables in your favor.
Therefore, doing a hotel SWOT analysis can help you understand your business better, help your business deal with tough times, reduce competition, and more.
2. Indulge in reputation management
In the current scenario, having a significant digital presence is the need of the hour. You must have a comprehensive company website to convert your potential clients into loyal clientele.
Almost every successful hotel business has a strong online presence so that you can go through their reviews easily.
Analyzing the reviews to understand their pros and cons can help you build a company website devoid of their weaknesses and incorporate their strengths.
Incorporating as many good customer reviews as possible can greatly aid you in effective online reputation management. Reputation management is pertinent to the advancement of your hotel business.
Therefore, evaluating the online presence of a hotel business and indulging in reputation management are some of the most important steps in carrying out an accurate hotel analysis.
Beat the Competition with AxisRooms
After conducting the hotel analysis, you see your competitor’s standing. Now, you must take steps to gain a competitive edge over the other hotel businesses.
It is here that AxisRooms comes into the picture! From helping you improve your online presence to assisting you in implementing the right pricing strategies, AxisRooms has your back.
We help you manage the most taxing bits of your hotel business easily and effectively. From helping you cash your strengths and opportunities and tackle your weaknesses and threats, our revenue consultants have covered you.
We assist you in building a strong digital presence by updating your site with relevant and fresh images and content. We also help you stay connected with your customers to leave a lasting impression on them.
Not only do we help you build a positive online brand image, but we also let you indulge in reputation management by letting you compare your online reviews and ratings with that of your competitors.
You can also avail of our services to monitor demand and make predictions. Monitoring trends, supply, demand, and more was never this easy!
Therefore, using AxisRooms is one of the best ways to better your hotel’s performance and beat the competition in the hotel industry.