Day 1: Know your comp set
Your comparative hotel set includes similar properties located in relative proximity to your property. Similarities can include location, price, amenities, services and accommodations but comps can also include hotels with differing attributes that your hotel balances with its own unique attributes. Your comp set may also include closely related properties that are not in your immediate area. For example, if you are a luxury boutique hotel, another luxury boutique hotel across town may be an appropriate comp. Guests drawn to niche hotels are more flexible with location because they are shopping for experiential lodging as opposed to attraction based convenience. At the same time, do not limit your comp set to other independent hotels. Expand your range to include brand based hotels nearby. Shop their published rates using their own websites and third party distribution channels. Avoid the trap of deploying seasonal rates. Yield pricing based on market rates and compression. Think like a real estate appraiser. Average rates in your comp set, place a value on your strengths and weaknesses and adjust rates accordingly. Be competitive with hotel inclusions that increase perceived value and highlight those as part of your rate strategy.
Join us tomorrow for Day 2 of 5 Low Budget Revenue Strategies for Independent Hoteliers: Develop a referral network