How to Build an Effective Hotel Comp Set
Competitor analysis is essential for building an effective hotel pricing strategy. Without knowing who your real competitors are, you risk underpricing or overpricing—both leading to revenue loss. That’s why defining the right competitive set is critical.
But what exactly is a compset, and how should you build yours?
What Is a Compset?
A compset (short for competitive set) is a group of hotels that are realistically comparable to your property. Ideally, these hotels are located in a similar area, fall into the same category, offer a comparable level of service, and target the same or overlapping guest segments.
The purpose of a compset is to provide an objective benchmark for market positioning, support pricing decisions, and help you measure your performance against relevant competitors.
Why Is a Well-Built Compset So Important?
Monitoring the wrong competitors distorts your market view. On the other hand, a well-defined compset allows you to:
- Use real market benchmarks for pricing,
- Understand demand trends and seasonal patterns,
- Make smarter positioning and marketing decisions,
- Optimize your RevPAR (Revenue Per Available Room),
- Respond more effectively to competitor price changes.
How to Build an Effective Hotel Competitor Set
Creating a compset is not only based on data – it also depends on local market knowledge. Here are the most important steps:
- Location Matters
Start with geographic proximity. A city-centre boutique hotel cannot realistically compare itself to a suburban motel, even if their room rates seem similar.
- Category and Service Level
Look at factors such as star rating, room size, breakfast quality, wellness facilities, and design.
- Target Audience and Travel Type
Know your guests. Are you attracting business travelers, families, or couples? A weekday-focused corporate hotel won’t provide relevant benchmarks for a weekend leisure property.
- Price Category
Go beyond list prices. Analyze the actual average selling prices – tools like RateMate can help with this. You’ll get a clearer picture of how your competitors are pricing their rooms on different days, seasons, and during events.
- Keep It Dynamic
The market changes—new hotels open, others close or reposition. Review your competitive set regularly to stay relevant.
How RateMate Supports You
RateMate is a hotel-focused rate intelligence tool that helps you:
✔️ Define and customize your competitor set
✔️ Track competitor pricing daily across multiple platforms
✔️ Identify the right moments to adjust your rates
With RateMate, you’ll gain real-time market insights, ensuring your pricing stays competitive and data-driven.
Your Key to Smarter Pricing
Your hotel competitor set isn’t just a list—it’s a key revenue management tool. By identifying your true competitors and monitoring their pricing behavior, you can drive more bookings, maximize revenue, and stay ahead of market trends.
Use smart tools like RateMate to make smarter, data-driven pricing decisions. Try RateMate free today and experience how it can make your pricing and competitor monitoring more efficient!