How do the clients compare your hotel to the other hotels? Develop knowledge not only on their selling rates but also on the value they offer.
Benchmarking your competitors means benchmarking on the following criteria:
the level of service
the distribution channel
A competitor may be competing only on few segments and at different time (i.e. weekends)
Anticipate the Rate Strategies of your Competition
Benchmark your competitors' rates in order to anticipate their strategies. How will their selling strategies by segments evolve? How will that impact your demand to come to your hotel?
Day by Day Pricing
Check the public rates of your competition, at least once a week. What are their strategies? What is the probability that they will decrease or increase their rates on specific period? Make sure you know what rates your competition is selling at...
Also check periodically pricing by LOS i.e. 2 nights stay by arrival day, 3 nights stay by arrival day etc.
Identify opportunities when you can follow up the market as shown in the above example!
You may decide to subscribe to a Rate Shopping Tool (below an example from RateTiger Shopper).
Here is step 8 in our revenue management action plan:
Develop benchmarking of your competition: public rates by LOS and arrival days.
Benchmark periodically your competitors' rates on other market segments
Anticipate the rate strategies of your competitors: what will be their rate positioning in the coming year, per periods? How that will affect the demand to come to your hotel. How can you differentiate your hotel in terms of Pricing & Value?