Looking at the RateIntelligence calendar, you might wonder why you're seeing so many yellow and red days highlighting medium to big differences between your rate and the median rate of your competitive set.
This can mean that you are following a pricing strategy that is different from the properties you chose to compare, but the reason might be that these properties are not fit to stay in your competitive set.
Location is not always key
While choosing the properties that will be compared to yours, the most common approach is to select properties that are close to you. Looking at your neighbors' pricing strategy is natural but can lead to having a very misaligned competitive set that doesn't reflect your property's characteristics and prices.
What type is your property?
Try looking for properties that are in the same type and category as yours. A 4-star hotel shouldn't look at the rates of an apartment rental next door but should broaden the search to find other 4 star hotels. This is very easy to do in a big city but can be more challenging in different markets. For example, a B&B in a small village in wine country might have to look at nearby towns to find similar properties, which is completely fine since what characterizes these properties is the area they serve and not the town itself.
Find your property best assets
What about the services you provide? Do you have an excellent restaurant that serves great lunches and dinners? Try looking for similar properties that also have a restaurant. Whether it's conference rooms, fitness center, swimming pool, room service, cocktail bar or any other facility, know what are the strengths of your property and find others with the same services.
How is your property perceived?
Another aspect you have to consider is your property's review score, one of the first things guests take into consideration while making a booking. If you compare your property with higher or lower ranked properties, you usually will see a lot of difference between your rates and theirs. Trying to adapt your pricing strategy to this kind of competitive sets might have bad results:
if you lower your prices to match those of lower ranked properties, you might attract more guests but you will be selling your rooms under price, at the expense of potential revenue.
if you raise your prices to match those of higher ranked properties, you might lose guests to your competitive set.
Booking can help you
At this point, you should have all the knowledge you need to find the competitive set that best fits your property. But how can you put this knowledge into practice? Thankfully Booking.com has a way to help you with this task. When looking for properties you can use the options that are provided on the left of the search results to filter them and find the perfect match.
Refine RateIntelligence's configuration
Once you've found the perfect properties for your competitive set, remember to save them in RateIntelligence. In this article, you can find how to change the competitive set in the platform.