Compset

Why is it important to define and monitor the Compset in hotels?

Having a well-defined Compset is essential for any revenue management strategy, as it provides a concrete reference to compare KPIs such as ADR, occupancy, and RevPAR.

Benchmarking against the Compset allows hotels to understand whether they are performing better or worse than competitors, whether their rates are competitive, and how the property is positioned in the market.

This comparison also helps identify new opportunities (e.g., additional services not yet offered), respond to changes in demand, and make more informed decisions regarding pricing, promotions, and sales strategies.

It’s important to remember that a Compset is not static: it should be updated periodically based on new market entrants, changes in competitors’ positioning, or shifts in the property’s target audience.

In some cases, hoteliers also monitor a secondary group called the aspirational Compset, consisting of slightly higher-category or branded hotels that serve as a benchmark for future growth.

How is a Compset built in hotels?

To create an effective Compset, select between 4 and 10 competing hotels based on criteria such as:

• Geographic location (same area, neighborhood, or city)
• Category and price range (similar star rating, comparable rates)
• Guest type (business, leisure, groups, couples, etc.)
• Services and hotel style (boutique hotel, resort, chain, etc.)

Once defined, the Compset can be analyzed using tools such as STR reports, benchmarking reports, rate shopping tools, or manual online rate analysis.