Competitive analysis, a hotel asset management tool too often overlooked

If you are managing a football team a competitive analysis is one of the first things a manager does on the Monday before a match on the weekend,

Their strengths and their weaknesses, you assess your opportunities to beat them. If you want to be better than others then you need to understand them and know about them, simple stuff.

In the resort hotel management world why is it that the simple yet time-consuming effort to know your competitors better than they know themselves so you can deliver strategies to beat them are so often overlooked?

This aspect of your hotel business plan should form a major part of your strategy. You will be surprised at how little hotel owners and management teams understand what their competitors are doing and what their weaknesses and strengths are, and therefore they lack the knowledge needed to create winning business plans.

This is where the role of the hotel asset manager comes to the forefront, and where we can help.

Firstly one’s ability to take a customer from your competition is based on that customer’s perception of your hotel’s value in their mind’s eye, their perception of you and your product as compared to the competition. It’s all very simple.

The higher a prospective customer perceives you, then you become closer to creating a competitive advantage. It’s the competitive advantage factor.

What can you do?

You need to know how your offerings in total compare to theirs.  How they compare favorably and non favorably.

Start on their website, and surf the web compiling all the info you can find. Visit your competitive set, get to know there product as well as your own. Ask your customers. You will then start to understand how your services and value pricing compare. Use common sense in your approach to information gathering and much will be revealed.

So now what? Well now it comes to a self assessment, where are you better and where do you need to improve? Questions to ask yourself is how are we going to get the correct message out about our strengths, how are we to improve on our weaknesses so they become strengths.

It’s part of putting together a hotel asset management plan that is unique to your investment, that meets your investment horizon. For example one that balances a capital expenditure program redefining a use of space with service and product enhancement strategies, unlocking value.

For expert advice and professional guidance on how you can go about understanding and utilizing your competitive advantage, how you can turn your weaknesses into strengths, and how you can unlock value you never knew you could achieve, ask  mark@turnerlodgingco.com.

 

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