What does a competitive set (Comp Set) refer to in the hospitality industry?

A competitive set, often referred to as a comp set in the hospitality industry, is a group of hotels that directly compete with a specific property. This group is typically selected based on similarities in location, services offered, amenities, and target markets. The purpose of defining a comp set is to analyze market position and performance metrics, such as pricing, occupancy rates, and customer satisfaction, in order to gauge how well a property is performing relative to its direct competitors.

Understanding the dynamics within the comp set enables hotel management to make informed strategic decisions regarding pricing, marketing approaches, and service enhancements. This analysis is crucial for maintaining a competitive edge in the marketplace, adjusting operational strategies, and developing effective marketing campaigns. The insights gained from evaluating the performance of the comp set can significantly impact the overall business strategy of the hotel.