Ever feel like your hotel’s numbers don’t add up? You’re working hard, running promotions, tweaking prices, but the bookings just aren’t coming in the way you expected. Maybe you’re missing something obvious. Like who you’re actually competing with.
Picking the wrong comp set is like racing a marathon against sprinters. You’re comparing yourself to the wrong hotels, so your pricing, marketing, and sales strategies get thrown off. The result is lost revenue and missed opportunities.
This blog is here to fix that. We’ll show you why choosing the right comp set matters big time and give you simple tips to find the group of hotels that truly matter for your business. Because when you know your real competition, you make smarter moves and more money.
What is a hotel comp set?
A comp set (or competitive set) is a group of hotels you compare your property to. Think of it as your “competition crew”. These are the hotels you watch closely to see how you’re doing in the market.
But it’s not just any hotel nearby. Your comp set should be made up of properties that really matter to your business. That means hotels that attract the same kind of guests, offer similar services, and play in the same price league. Picking random neighbors won’t help you make smart decisions. You need a comp set that gives you a clear picture of where you stand and how to win more bookings.
What does a hotel comp set help with?
Picking the right comp set does a lot more than just give you a list of hotels to watch. It actually helps you run your hotel smarter and make more money. Here’s how:
1. Pricing your rooms right
If you don’t know what your true competitors are charging, you’re shooting in the dark. Your comp set shows you the price range guests expect, so you can set rates that attract bookings without leaving money on the table.
2. Understanding your market position
Your comp set is like a reality check. It tells you where you stand in the market. Are you a budget option, a mid-range choice, or a luxury spot? Knowing this helps you shape your brand and marketing to fit what guests want.
3. Tracking your performance against similar hotels
How are you doing compared to hotels like yours? Are you winning or losing market share? The right comp set gives you clear benchmarks so you can spot if you’re falling behind or leading the pack.
4. Making smarter sales and marketing decisions
When you know who you’re competing with, you can tailor your sales pitch and marketing messages. You’ll know which features to highlight and which guest groups to target to get the best results.
5. Spotting trends and opportunities before your competitors do
Your comp set is like a sneak peek into the future. Watch how your competitors adjust prices, add amenities, or run promotions. Spotting these trends early means you can jump on opportunities before they do and stay one step ahead.
Why getting your comp set wrong costs you money
Picking the wrong comp set isn’t just a small mistake, it can actually cost your hotel big time. Here’s how things go sideways when your comp set misses the mark:
Pricing too high or too low
If your comp set includes hotels that don’t really compete with you, your pricing will be off. The price is too high, and you scare guests away. Price is too low and you leave money on the table. Both hurt your bottom line.
Missing shifts in demand
A bad comp set can blind you to changes in the market. Maybe a new competitor opens up, or demand shifts to a different type of traveler. If you’re watching the wrong hotels, you’ll miss those signals and won’t adjust fast enough.
Wasting marketing dollars
Marketing budgets aren’t unlimited. If you target the wrong audience because your comp set doesn’t reflect who you really compete with, you’ll spend money on ads and promotions that don’t bring bookings.
Flying blind or running the wrong race
Imagine running a race with the wrong group of runners. That’s what a bad comp set feels like. You’re comparing yourself to the wrong hotels, so your sales strategies, pricing, and goals are out of sync with the market. You think you’re competing hard, but you’re actually running the wrong race.
11 tips to pick the right hotel comp set
Picking the right comp set is crucial. Get it wrong and your whole strategy can crumble. Here’s how to choose wisely with clear details and up-to-date insights.
1. Look beyond geography: Think about who your real guests consider your competition
Nearby hotels aren’t always your true rivals. Guests might compare your hotel with places they found on different booking sites or neighborhoods, especially in urban areas or resort destinations where options abound.
Think about your guests’ mindset: are they searching for the cheapest rate, the best location, or a specific amenity
Sometimes your competition could be a hotel in a different district or a chain brand known for loyalty perks.
Understanding this helps you zero in on real rivals, not just neighbors.
2. Match your hotel type: Don’t compare a budget spot to a luxury resort
Hotels operate in very different markets depending on their class. Budget, midscale, and luxury hotels serve guests with distinct expectations and budgets.
Avoid comparing your hotel to others that offer a completely different level of service or experience.
Focus on hotels that share your brand positioning and market segment.
This helps ensure your pricing and marketing decisions are based on relevant benchmarks.
It prevents confusion that can come from comparing hotels that play in entirely different leagues.
3. Consider size and scale: Number of rooms matters
The number of rooms your hotel has affects how you operate and compete. Larger hotels often cater to groups and events, while smaller properties tend to focus more on individual travelers or niche markets.
Compare yourself to hotels with a similar room count to ensure relevant insights.
Size influences operational costs, marketing reach, and guest profiles.
Matching scale makes your competitive analysis more meaningful and actionable.
4. Match amenities: Pools, meeting rooms, dining options
Amenities shape guest choices. If your hotel offers those perks, your comp set should include hotels with similar features. Compared to hotels without amenities, you will mislead your market position.
Including hotels without these amenities will skew your understanding of where you stand.
Amenities attract different types of guests, so matching them helps ensure you compare apples to apples.
Consider what your guests value most and make sure your comp set reflects those offerings.
5. Check your price range: Compare hotels with similar rates
When selecting your hotel’s competitive set (comp set), it's crucial to focus on properties that share a similar pricing structure.
Comparing yourself to much cheaper or more expensive hotels distorts your view of the market.
Focus on hotels whose rates appeal to the same guest segments you target.
This keeps your pricing strategy aligned with realistic alternatives your guests would consider.
6. Use booking channels: Are your competitors on the same OTAs and platforms?
Where your guests book matters as much as where they stay. If your comp set hotels don’t appear on the same online travel agencies (OTAs) or booking platforms your guests use, you won’t be comparing your true competition.
Make sure your comp set hotels are active on the same platforms, whether that’s Expedia, Booking.com, or specialized sites.
This alignment provides more accurate data on market share, pricing pressures, and guest preferences.
7. Look at customer segments: Business travelers, families, leisure guests
Your hotel’s guest mix influences who your real competitors are. Hotels targeting business travelers will face different rivals than those serving families or vacationers.
Include hotels in your comp set that attract a similar customer profile.
Look at amenities, location, and services that appeal to your guests.
This helps ensure you’re tracking hotels competing for the same types of bookings.
8. Keep it manageable: Three to seven hotels is a good size
It might be tempting to include as many hotels as possible, but too many can overwhelm your analysis.
A focused comp set of around 3 to 7 hotels is easier to manage and more actionable.
This balance gives you enough data for meaningful comparison without drowning in noise.
It keeps your strategy clear and focused on what really matters.
9. Review and adjust regularly: Markets change, so should your comp set
The hotel market is always evolving. New hotels open, others close, and guest preferences shift.
Regularly review your comp set to ensure it stays relevant.
Check your selection at least twice a year or whenever significant changes happen locally.
Keeping your comp set current helps you make decisions based on accurate, timely information.
10. Use data smartly: Track performance, but trust your gut too
Performance metrics like ADR, occupancy, and RevPAR are essential, but they don’t tell the full story.
Sometimes a hotel looks like a competitor on paper but targets a different guest or uses unique promotions.
Combine your data with local knowledge, guest feedback, and input from your sales team.
Balancing hard data with intuition leads to smarter, more practical decisions.
11. Don’t copy your competitors blindly: Be strategic, not just reactive
Your hotel is unique, so your comp set should be too.
Just because a nearby hotel uses a certain comp set doesn’t mean it fits your strategy.
Focus on hotels that challenge you to improve and help you understand your market position.
Your comp set should support your specific revenue goals and guest loyalty strategies, not just mirror what others do.
How Cvent helps you monitor your comp set
Keeping track of your hotel’s performance compared to competitors can be a complex, time-consuming process, especially when you’re trying to monitor multiple metrics across several hotels.
CSN Business Intelligence offers a powerful comp set dashboard designed specifically for hotels to monitor the Request for Proposal (RFP) activity and other key competitive metrics without the tedious manual work. This dashboard lets you:
Track Your Ranking in Your Chosen Comp Set: See where your hotel stands daily compared to your competitors.
Customize Your View: Select the metrics most important to your business, tailored to your RFP or room night data.
You can choose to monitor some or all of the following metrics:
Average Awarded RFP Value per Room Night
Bid Rate (how often you submit proposals)
Response Rate and Time (how quickly and frequently you respond)
Awarded Room Nights (number of room nights booked through RFPs)
Awarded RFP Value (total value of business won)
Proportional Share for Received and Awarded Business (your share compared to the comp set)
Proposed Average Daily Rate (ADR)
Turn Downs/Declined RFPs (opportunities you declined)
Missed RFPs (business sent to competitors but not your property)
All of these insights are available at a glance, updated daily. Beyond just current performance, you can analyze trends over time and access historical data to understand how your hotel and your competitors have evolved.
Shape your hotel’s pricing, marketing, and success with your comp set
By thinking beyond geography, matching your hotel’s type, size, amenities, price range, and guest segments, you create a comp set that truly reflects your competitive landscape. Keep your list manageable, review it regularly, and combine data with local insights to stay ahead of market shifts.
Most importantly, be thoughtful and strategic. Your comp set should help you carve out your unique place in the market, not just mimic what others do. With the right comp set in place, you’re better equipped to make smarter decisions, attract the right guests, and drive more profitable business.
