Competitor analysis is not a “who is cheapest” game. The goal is context: where you're positioned and how the market is moving. This matters for dynamic pricing because it helps you make changes with confidence—without copying every move.
The golden rule
Competitor rates are context, not instructions. Your strategy must account for differences in product, location, reputation, and channel mix.
1) How to choose a real comp set (5–10 hotels)
A comp set is the group of hotels you truly compete with for the same guests. Practical criteria:
- similar location (a guest would pick you or them);
- similar quality and review rating;
- similar amenities (parking, breakfast, business services);
- similar demand profile (leisure, business, groups).
If you include hotels that are too different, you create false signals and make unnecessary changes.
2) What to track (not just “today’s rate”)
A single rate snapshot is rarely enough. More useful signals include:
- patterns by day of week (weekend vs weekday);
- room-type spacing (when publicly visible);
- changes around events and holidays;
- availability signals (sold out / limited inventory).
3) Using competitor context in dynamic pricing (without becoming a copy)
A workable approach:
- Define your position: do you want to sit lower, mid, or upper market for selected dates?
- Set guardrails: min/max rates and step size.
- Act only on signals: when pickup or events support a move.
- Validate the outcome: did RevPAR and net pickup improve, not just your “market position”?
If you want a faster market view, Sigma Revenue offers Competitor Data and can include the context in rate recommendations.
4) Common mistakes
- Too large a comp set: noise instead of signal.
- Blind price-matching: leads to rate wars and margin loss.
- Ignoring differences: different product ≠ same value to the guest.
Glossary reference: dynamic pricing.