How to conduct hotel competition analysis

Competition is one of the important factors in the hotel business environment. With the increasing development of the hotel industry, the competition in the hotel industry is becoming increasingly fierce, and the competition situation is becoming increasingly severe. Different competition situations will have different impacts on hotel marketing. In hotel business activities, every hotel operator must frequently and continuously analyze the number and scale of competitors, competitor supply, competition methods, etc., so as to come up with effective competition strategies and strive to gain advantages in the competition. .

When marketers conduct competitive analysis, the general steps are as follows. 1. Determine the hotel’s main competition objects

In the process of competitive analysis, you must first clarify who are the hotel’s current and potential competitors. Only in this way can the hotel's competitive analysis work be targeted, and the formulated competitive strategies may be effective. There are many ways to determine hotel competitors. Competitors can be determined based on the target market or based on the hotel's star rating or grade. The so-called competitors refer to hotels that are geographically close, provide products and services that are similar or identical in content and grade, and target the same source market. 2. Carry out competition analysis

To analyze and compare the hotel competition, we can start from two aspects. First, start by analyzing the product-service combination of each hotel to understand the facilities and services of the hotel's competitors. What are the advantages and disadvantages of each. The hotel's competitive advantages and disadvantages can be reflected in the hotel's location, facilities, services, price, atmosphere, parking space, architectural style, surrounding environment, etc.; secondly. Analyze and understand the marketing activities and sales of respective hotels. By carefully analyzing the above situation, marketers can understand what marketing activities the hotel and competitors have carried out and the effects of various activities, so as to understand the competition situation. 3. Determine the hotel's competitive advantages and disadvantages

From the above competition analysis, marketers can easily analyze the hotel's advantages and disadvantages in the competition, and then know themselves and the enemy. 4. Determine hotel competitive strategies

The ultimate goal of hotel competitive analysis is to plan the hotel's effective competitive strategies and competitive position through analysis. Usually, hotels competing in the same target market are in different competitive positions because of their different marketing purposes, resources and strengths. Each hotel must adopt different competitive strategies due to different competitive positions.

In hotel competition, hotels with four different competitive positions may usually appear, which are market leaders, market challengers, market followers and market niche players. These four competitive positions can be targeted not only at a hotel, but also at a certain business item of the hotel such as catering, guest rooms, etc. The products of the same hotel may be in different competitive positions and adopt different strategies for different situations. 1. Market leaders and strategies

Market leaders refer to hotels that have a leading position in the market competition of related products and are usually recognized by their peers. To maintain its competitive advantage. To maintain its dominant position, three measures are often adopted: first. Expand market demand, including specific measures such as building new guest rooms, developing new uses for products, and increasing customer usage of products; second, maintain market share, make unremitting efforts in product innovation and improve service levels, and at the same time seize the Take the initiative to attack the opponent's weaknesses; third, seize the market. Market leaders strive to increase market share levels through adjustments to hotel marketing mix strategies. 2. Market challengers and their strategies

Hotels that are in a subordinate position in the market and challenge competitors in order to seize market dominance are called market challengers. The strategic goal of challengers is often to increase market share. They adopt various offensive strategies to attack market leaders or those with comparable strength. Usually challengers should design a combination of strategies, an overall strategy, to improve their market position. However, not all second-place hotels can serve as challengers. If you are not fully sure, you should not rush to attack the market leader. It is not a bad idea to act as a follower. 3． Market Followers and Their Strategies

Hotels that are content with a secondary position in the market and pursue as much revenue as possible while surviving are called market followers. Unlike market challengers, it does not launch an attack on the leader, but follows the leader and consciously maintains its position. Commonly used strategies for followers include close following, distant following, and selective following.

4. Market niche players and their strategies

In the hotel industry, focus on small parts of the market and obtain maximum benefits through specialized operations in these small markets, which is to find opportunities in the cracks of large companies. Hotels that survive and develop are market niche players. This favorable market position is called a "niche" in Western marketing. The so-called market niche is to choose the most advantageous position and gain the maximum benefit from this position. In fact, this market position makes sense not only for small businesses, but also for smaller departments in some large hotels. They often try to find one or several market positions that are both safe and advantageous. Under normal circumstances, it has sufficient market potential and purchasing power, and the ability to continue to grow, but is not attractive to major competitors. The company has the ability to occupy and rely on its own reputation to fight against major competitors, which can be regarded as the most advantageous market position. . To read more related knowledge, return to the hotel management knowledge column list