How to Set Up Your Own Competition Report
Comprehensive Competition Report Without an STR Subscription
Introduction
If you don’t have access to an STR report, you can still create your own
competition report by gathering information on comparable hotels in your
area. This will allow you to monitor competitors’ performance, identify market
trends, and optimize your property’s strategy. Following the Competitor
Property Visit Checklist and regularly tracking key data points will
empower you with insights for benchmarking against competitors.
In this report, you will explore critical metrics like Average Daily Rate (ADR), Occupancy, RevPAR, Room Demand, Market Share, and various performance indexes. Through property visits, online research, and mystery shop calls, you’ll collect essential details about at least 5 competitor properties to build a meaningful competitive analysis
Creating your own Competition Report can provide valuable insights into your local market, even without subscribing to STR reports. Below is a structured approach based on the checklist you mentioned:
Detailed Sections of the Competition Report
1. Competitors Property Features (Indoor/Outdoor)
will help you understand your competitors' offerings, strengths, and how
they market their amenities. Gather data through property visits, OTA listings
(e.g., Booking.com, TripAdvisor), and brochures.
- Indoor
Features:
- Room
types, lobby design, meeting rooms, fitness centers, spas, bars, and
restaurants.
- Special
services (e.g., valet parking, concierge service).
- Outdoor
Features:
- Pools,
gardens, terraces, private beaches, event spaces.
- Accessibility to local attractions, transportation, and parking availability.
Evaluate the quality and variety of rooms to see how your hotel
compares. Pay attention to guest reviews for insights into what customers value
the most.
- Room
Types: Standard rooms, suites, family rooms.
- Amenities:
Free Wi-Fi, air conditioning, minibar, workspace, toiletries.
- Condition:
Newly renovated vs. outdated rooms.
- Room
size and view options (e.g., sea view, city view).
Assess your competitors’ value proposition by analyzing the following:
- Number
of Rooms:
- Larger
properties may attract group bookings, while smaller ones might focus on
personalized service.
- Rates
(ADR):
Track seasonal rates and rate types (standard, advanced purchase, corporate, or promotions). - Overall
Physical Quality:
- Measure
the visual appeal and condition of the property (use review ratings to
get insights).
- Level
of Service:
If some of your competitors belong to international chains, their
brand image can influence customer choices. Look into:
- Brand
loyalty programs (e.g., Marriott Bonvoy, Hilton Honors).
- Guest
perceptions associated with the brand’s reputation.
5. Location Value
Evaluate how location impacts demand:
- Proximity
to key attractions, airports, or business hubs.
- Accessibility:
Public transport, highways, or walkable areas.
- Neighborhood
safety and desirability.
6. Overall Rating (from OTAs and Reviews)
Collect guest ratings from multiple platforms such as TripAdvisor,
Google Reviews, or OTAs. Use these scores to gauge how well the competitor
properties are performing in terms of guest satisfaction.
7. Competitive Shop Call
Conduct mystery shop calls to get insights about pricing and
occupancy. Use these calls to ask about:
- Current
ADR: For multiple dates (weekday vs. weekend).
- Availability: Subtly
ask to gauge occupancy trends.
These key metrics will help you understand the market capacity
and your competitors’ performance:
- Room
Supply: Total number of rooms in the market (all competitors combined).
- Room
Demand: Total number of rooms sold across competitors during a specific
period.
- Room
Revenues: Total revenue generated from room sales across the market.
Key Performance Metrics (Occupancy, ADR, RevPAR)
These metrics are essential to benchmark performance:
- Occupancy:
Measures the percentage of available rooms sold.
∗∗Occupancy(**Occupancy (%)** = (Rooms Sold ÷ Rooms Available) × 100∗∗Occupancy( - ADR
(Average Daily Rate): Measures the average room rate
charged.
∗∗ADR∗∗=TotalRoomRevenue÷RoomsSold**ADR** = Total Room Revenue ÷ Rooms Sold∗∗ADR∗∗=TotalRoomRevenue÷RoomsSold
∗∗RevPAR∗∗=ADR×Occupancy(**RevPAR** = ADR × Occupancy (%)∗∗RevPAR∗∗=ADR×Occupancy(
OR
∗∗RevPAR∗∗=TotalRoomRevenue÷TotalAvailableRooms**RevPAR** = Total Room Revenue ÷ Total Available Rooms∗∗RevPAR∗∗=TotalRoomRevenue÷TotalAvailableRooms
Performance Indexes (Occupancy Index, ADR Index, RevPAR Index)
These indexes compare your performance to that of your
competitive set. A value above 100 indicates that your property is
outperforming the market.
- Occupancy
Index:
∗∗OccupancyIndex∗∗=(YourOccupancy÷MarketOccupancy)×100**Occupancy Index** = (Your Occupancy ÷ Market Occupancy) × 100∗∗OccupancyIndex∗∗=(YourOccupancy÷MarketOccupancy)×100
- ADR
Index:
∗∗ADRIndex∗∗=(YourADR÷MarketADR)×100**ADR Index** = (Your ADR ÷ Market ADR) × 100∗∗ADRIndex∗∗=(YourADR÷MarketADR)×100 - RevPAR
Index:
∗∗RevPARIndex∗∗=(YourRevPAR÷MarketRevPAR)×100**RevPAR Index** = (Your RevPAR ÷ Market RevPAR) × 100∗∗RevPARIndex∗∗=(YourRevPAR÷MarketRevPAR)×100
Market Share Metrics (Supply Share %, Demand Share %, Revenue Share %)
- Supply
Share: The proportion of total market rooms that your hotel provides.
∗∗SupplyShare**Supply Share %** = (Your Available Rooms ÷ Total Market Rooms) × 100∗∗SupplyShare - Demand
Share: The proportion of rooms sold in the market that your hotel
captures.
∗∗DemandShare**Demand Share %** = (Your Rooms Sold ÷ Total Market Rooms Sold) × 100∗∗DemandShare - Revenue
Share: The percentage of total market revenue that your hotel generates.
∗∗RevenueShare**Revenue Share %** = (Your Revenue ÷ Total Market Revenue) × 100∗∗RevenueShare
Building Your Competition Report
|
Hotel Name |
Rooms |
ADR |
Occupancy % |
RevPAR |
Guest Ratings |
Location |
Service Level |
Market Share % |
