In the hospitality industry, success depends on more than offering rooms—it’s about standing out in a crowded market. Travelers compare hotels based on price, reviews, amenities, and online presence. To stay ahead, hoteliers must understand what competitors are doing right and where they fall short. That’s where hotel competitors analysis comes in.
This guide explores everything you need to know about hotel competitors analysis—from what it is and why it matters, to step-by-step instructions, case studies, and practical tools you can use today.
Introduction
The hospitality market is dynamic and competitive. With travelers having endless booking options on platforms like Booking.com, Expedia, and Airbnb, hotels need to be proactive in monitoring their competitive landscape.
Hotel competitors analysis gives hoteliers a structured way to evaluate their rivals’ pricing, guest experiences, marketing strategies, and reputation management efforts. Armed with this knowledge, you can fine-tune your own strategies to increase occupancy, revenue, and guest satisfaction
What Is Hotel Competitors Analysis?
Hotel competitors analysis is the process of evaluating rival hotels in your market to understand their strengths, weaknesses, and positioning. It involves studying factors like:
- Pricing strategies – Average daily rate (ADR), promotions, seasonal pricing.
- Amenities and services – What extras they offer (spa, gym, airport transfers).
- Reputation – Online reviews and ratings across platforms.
- Digital marketing efforts – SEO, social media, and paid ads.
- Target markets – Business travelers, families, or leisure tourists.
The goal is not to copy competitors, but to find opportunities for differentiation and strategic improvements.
Why Competitor Analysis Matters in Hospitality
Here’s why hotel competitors analysis is crucial:
- Optimize Pricing – Stay competitive without undervaluing your rooms.
- Enhance Guest Experience – Learn what guests love or dislike about competitors.
- Boost Occupancy Rates – Position your hotel better during high and low seasons.
- Improve Marketing ROI – Adapt proven promotional strategies.
- Stay Ahead of Market Trends – Identify changes in traveler preferences early.
- Strengthen Brand Reputation – Outperform competitors in guest satisfaction.
In an industry where small improvements can mean thousands in revenue, competitor analysis is essential.
Step-by-Step Guide to Hotel Competitors Analysis
Step 1: Identify Your Competitive Set
- Direct competitors: Hotels of similar size, location, and amenities.
- Indirect competitors: Alternative accommodations (Airbnb, boutique hotels).
- Aspirational competitors: Higher-tier hotels you aim to match or surpass.
Step 2: Collect Data
Use:
- OTAs (Booking.com, Expedia, TripAdvisor).
- Google Hotel Finder.
- Rate shopping tools like OTA Insight.
Step 3: Analyze Pricing
Track:
- Average daily rate (ADR).
- Discounts and promotions.
- Seasonal fluctuations.
Step 4: Study Amenities & Services
Compare:
- Room types and facilities.
- F&B offerings.
- Added perks (free breakfast, shuttle, loyalty programs).
Step 5: Monitor Online Reputation
- Analyze guest reviews across TripAdvisor, Google, and OTAs.
- Identify common themes in guest complaints.
- Benchmark review scores.
Step 6: Evaluate Digital Presence
- SEO performance for hotel keywords.
- Social media engagement.
- Paid ads and promotions.
Step 7: Apply Insights
- Adjust pricing models.
- Improve underperforming amenities.
- Strengthen guest engagement campaigns.
Analyzing Pricing, Reviews & Online Presence
A hotel competitors analysis should always focus on three pillars:
- Pricing – Competitive pricing can make or break bookings. Track ADR, RevPAR (Revenue Per Available Room), and promotions.
- Reviews – Reputation is everything. A competitor with consistent 5-star reviews has a clear edge.
- Online Presence – Hotels with strong SEO and active social media campaigns capture more direct bookings.
Impact on Revenue Management & Marketing
Competitor insights feed directly into:
- Revenue management – Pricing adjustments based on market trends.
- Distribution strategy – Optimizing channels like OTAs, direct booking engines, and GDS.
- Marketing campaigns – Crafting promotions based on competitor weaknesses.
- Guest satisfaction – Addressing issues guests complain about at rival hotels.
Done right, competitor analysis can increase occupancy rates and maximize RevPAR.
Case Studies: Hotels Using Competitor Analysis
Case Study 1: City Hotel
A city-center hotel tracked competitor pricing and noticed rivals increased ADR during conferences. By aligning their rates, they increased revenue by 20% during event weeks.
Case Study 2: Resort Hotel
A beach resort monitored guest reviews and discovered competitors had complaints about slow Wi-Fi. They promoted their high-speed Wi-Fi as a USP, boosting bookings.
Case Study 3: Boutique Hotel
A boutique hotel saw rivals dominating Instagram. After investing in professional photography and influencer partnerships, they grew direct bookings by 30%.
Industry-Specific Insights
Different hospitality segments need tailored competitor analysis:
- Business Hotels – Focus on meeting rooms, Wi-Fi, and corporate packages.
- Resorts – Emphasize amenities, entertainment, and seasonal pricing.
- Boutique Hotels – Branding and personalization are key.
- Budget Hotels – Compete on pricing, cleanliness, and location.
- Luxury Hotels – Focus on exclusivity, service quality, and reputation.
Common Mistakes to Avoid
- Copying competitor strategies blindly – Leads to brand dilution.
- Focusing only on price – Guests also value service and experience.
- Ignoring alternative accommodations – Airbnb is a real competitor.
- Relying on outdated data – Hospitality trends change fast.
- Not applying insights – Data without action is wasted effort.
Best Practices for Hotel Competitors Analysis
- Update competitor analysis monthly or quarterly.
- Create a competitor matrix with key metrics.
- Focus on actionable insights like pricing changes and guest experience improvements.
- Combine quantitative (ADR, RevPAR) and qualitative (reviews, branding) data.
- Use competitor weaknesses as opportunities to differentiate.
Tools & Resources for Hoteliers
Essential tools for competitor analysis include:
- OTA Insight – Real-time pricing intelligence.
- STR Reports – Benchmarking market performance.
- ReviewPro – Guest sentiment analysis.
- Hotel Compete – Market share insights.
- TripAdvisor & Google Reviews – Direct guest feedback.
Free resources:
- Google Hotel Finder
- OTA booking platforms (Expedia, Booking.com)
- Hospitality forums and case studies
FAQs
1. What is hotel competitors analysis?
It’s the process of evaluating rival hotels’ pricing, reviews, amenities, and marketing strategies to improve your own performance.
2. How do hotels identify competitors?
By location, market segment, amenities, and target audience.
3. Which metrics are most important?
ADR, RevPAR, occupancy rate, review scores, and digital presence.
4. How often should competitor analysis be done?
At least quarterly, and more frequently in competitive markets.
5. Can small hotels compete with large chains?
Yes, by focusing on personalization, niche branding, and superior guest service.
6. What tools help with hotel competitor analysis?
OTA Insight, STR Reports, ReviewPro, and TripAdvisor analytics.
7. Should hotels always match competitor pricing?
Not always—value-added services can justify higher rates.
Conclusion
Hospitality success isn’t just about managing your property—it’s about outperforming your competitors. A structured hotel competitors analysis helps you refine pricing, enhance guest experiences, and strengthen marketing campaign
