What is the meaning / definition of CompSet in the hospitality industry?
Hotels will often compare their performance against Compset hotels, in order to find ways to make their own offering more competitive.
Competitive sets are used for benchmarking purposes, market penetration analyses and to help develop positioning strategies. Many hotels uses rate shopping tools to compare their current pricing with the ones of their competitors in order to make proper pricing decisions.
What kind of hotels to put in your CompSet?
A hotel in any given area will not necessarily compete with all the hotels in that area for the same sources of demand. For a hotel market study, it is necessary to determine which hotels compete with the subject hotel and to what degree, and it is likewise important to eliminate those hotels that are not competing for the same demand. To this end, all the lodging facilities in a market area should be inspected and analysed in order to support the selection of the appropriate competitive set.
How many Hotels are in the Competitive Set?
5 to 10.
- Competitive Set