How to Run a Hotel Competitive Set Analysis in 2026
A hotel competitive set analysis compares a property's performance against a defined group of similar hotels, typically called a comp set, to understand how it is performing relative to its real competition rather than the market as a whole. Revenue managers generally rely on this comparison to guide pricing decisions and evaluate whether a property is gaining or losing ground.
This article covers how hotels typically choose a competitive set, which metrics a competitive set analysis usually tracks, and how to use the results to inform pricing and positioning decisions.
Key Takeaways
A hotel competitive set analysis compares a property's performance against a defined group of similar hotels rather than the broader market.
Hotels typically choose competitors for their comp set based on factors like location, star rating, room count, and target guest segment.
Key metrics tracked in a competitive set analysis usually include occupancy, average daily rate, and revenue per available room, commonly abbreviated as RevPAR.
A hotel's index score against its comp set, sometimes called a RevPAR index, shows whether it is capturing more or less than its fair share of demand relative to competitors.
Regularly reviewing a competitive set analysis can help revenue managers spot pricing gaps or positioning issues before they show up as a larger revenue problem.
How Hotels Choose a Competitive Set
This kind of analysis starts with choosing which properties belong in the comp set, and this choice generally has a significant effect on how useful the analysis ends up being. Hotels typically select competitors based on similar location, star rating, room count, and the type of guest each property tends to attract.
A comp set that includes properties too far outside a hotel’s actual market position, whether by price point, location, or guest segment, can make the resulting analysis less useful for pricing decisions, since the comparison no longer reflects real competitive pressure.
Hotels typically evaluate potential comp set members based on:
geographic proximity to the subject property
similar star rating or service tier
comparable room count and property size
overlapping target guest segment
What Metrics a Hotel Competitive Set Analysis Tracks
Once a comp set is defined, this kind of analysis generally tracks a core set of performance metrics for both the subject property and its competitors. Occupancy, average daily rate, and revenue per available room, commonly called RevPAR, are the most widely used benchmarks in this kind of analysis.
Many hotels also track an index score, comparing their own RevPAR against the average RevPAR of their comp set, to see whether they are capturing more or less than their fair share of demand relative to their direct competitors.
This analysis typically compares:
occupancy rate against the comp set average
average daily rate positioning
RevPAR and RevPAR index
booking pace relative to competitors
How ChargeAutomation Turns Hotel Competitive Set Analysis Into Revenue
Regularly reviewing comp set performance can help revenue managers catch pricing gaps or positioning problems early, before they show up as a larger revenue shortfall. A property consistently underperforming its comp set’s RevPAR index, for example, often signals a pricing or marketing issue worth investigating.
Automating guest facing revenue tools like upselling can also support the pricing insights a competitive set analysis surfaces, with properties using automated upselling typically seeing 15-20% upsell conversion, helping capture more value per booking once pricing is aligned with the competitive landscape. Hotels can start for free at chargeautomation.com to see how automated upselling can complement a broader revenue management strategy.
Hotels acting on a competitive set analysis typically adjust:
rate positioning relative to top performing competitors
promotional strategy during periods of soft demand
booking channel mix based on comp set performance
upsell offers to capture additional revenue per stay
Frequently Asked Questions
What is a hotel competitive set analysis?
This kind of analysis compares a property's performance against a defined group of similar hotels, known as a comp set, to understand how it is performing relative to its direct competitors.
How do hotels choose their competitive set for benchmarking?
Hotels typically choose comp set members based on geographic proximity, similar star rating, comparable room count, and overlapping target guest segment.
What is RevPAR index in hotel benchmarking?
RevPAR index compares a hotel's own revenue per available room against the average RevPAR of its comp set, showing whether the property is capturing more or less than its fair share of demand.
How often should a hotel run a competitive set analysis?
Many hotels review their competitive set analysis on a regular, ongoing basis rather than a one time exercise, since competitor pricing and performance can shift throughout the year.
What metrics matter most when benchmarking against a comp set?
Occupancy, average daily rate, RevPAR, and RevPAR index are generally the core metrics hotels track when comparing performance against their competitive set.
