Competitive Set Policy

Purpose:

The purpose of this Competitive Set Policy is to establish guidelines for creating, modifying, and maintaining competitive sets (comp sets) for benchmarking and performance analysis. This policy aims to ensure that competitive sets are used ethically, consistently, and strategically to enhance revenue management, marketing, and overall business performance while maintaining the confidentiality and privacy of all properties involved

Definitions:

• Competitive Set (Comp Set):A group of hotels selected for benchmarking purposes that are considered direct competitors based on factors such as location, market segment, amenities, and pricing
• Benchmarking:The process of comparing a hotel’s performance metrics against a selected competitive set to gauge relative performance and identify areas for improvement.

Policy Guidelines:

• Criteria for Selecting a Comp Set:
  • Location:Hotels included in a comp set must be within a similar geographic area, ensuring they compete for the same customer base
  • Market Segment:Hotels should target the same market segments (e.g., luxury, midscale, economy, business, leisure).
  • Size and Capacity:Select hotels with a similar number of rooms and capacity to ensure comparability.
  • Amenities and Services:Include hotels that offer similar amenities and services, such as dining options, meeting facilities, and recreational amenities.
• Minimum and Maximum Number of Properties:
  • A comp set must include a minimum of five (5) including Subject Hotel and a maximum of eight (8) hotels to ensure meaningful benchmarking and data privacy.
  • If Customer wishes to add a hotel to or remove a hotel from a competitive set, it must do so in combination with at least a second change, i.e., there needs to be a minimum of 2 changes to the comp set. For example, removing a hotel, then adding a hotel; or adding 2 hotels; or removing 2 hotels.
• Frequency of Changes:
  • Comp sets may be reviewed and adjusted once per month to account for market changes or strategic needs.
• Restrictions on Property Inclusion:
  • Properties from the same brand, chain, or Management Company are prohibited from being included in the same comp set to avoid conflicts of interest and ensure unbiased benchmarking.
  • No single property should account for more than 50% of the total room supply in the comp set
• Data Confidentiality and Usage:
  • All data derived from comp sets must be used solely for internal benchmarking, performance analysis, and strategic decision-making.
  • The confidentiality of all data must be maintained at all times. Data should not be shared outside the organization or used for competitive intelligence purposes.
• Monitoring and Compliance:
  • Our intelligence system and our team are responsible for regularly monitoring the composition and performance of all comp sets to ensure compliance with this policy.
  • Any discrepancies or violations of this policy will be reviewed, and corrective actions will be taken as necessary.

Enforcement: Failure to adhere to this Competitive Set Policy may result in cancellation of your subscription. The Occupancy Online reserves the right to review and amend this policy as needed to reflect changes in business strategy or market conditions. This policy ensures that competitive sets are used fairly, consistently, and ethically, with a focus on strategic value and data integrity.