A complete guide to competition analysis in the hotel sector
Competitive analysis is an essential tool for any hotel business that wants to stay competitive and relevant in the market. Knowing your competitors will not only allow you to identify areas for improvement, but also uncover opportunities to differentiate yourself and better connect with your customers. In this comprehensive guide, you will learn how to conduct an effective step-by-step analysis, which tools to use and how to translate your findings into actionable strategies.

What is hotel competition analysis and why is it essential?
Hotel competition analysis consists of studying other hotels in your area or market segment to understand their offer, strengths, weaknesses and strategies. This process is essential because:
- Helps you identify opportunitiesHow to improve your value proposition or adjust prices to attract more customers.
- Enables you to optimise your marketing and sales strategiesBased on what works best for your competitors.
- Strengthen your brand positioningBy differentiating yourself from other options available to travellers.
The impact of this analysis is not limited to areas such as rates or promotions. It also influences your online reputation, customer experience and ultimately the profitability of your business.
Benefits of knowing your competitors in the hotel industry
- Adapting to the changing marketCustomer preferences and trends are constantly evolving; competitive analysis helps you respond with agility.
- Preventing lossesDetect threats such as new competitors or aggressive strategies from other hotels before they affect your business.
- Discovering good practicesImplement tactics tested by your competitors that can be replicated or improved upon.
Step-by-step guide to conducting a hotel competition analysis
Hotel competitive analysis is not just a collection of data, but a strategic process that, when well executed, can turn into a significant competitive advantage. Below, we break down each step in detail so you can conduct a comprehensive and actionable analysis.
1. Define your objectives (the "Why" of the analysis).
Before starting any analysis, you need to know precisely what you hope to achieve. This will not only help you optimise resources, but also help you focus your efforts on relevant data. Some key questions to ask yourself:
- Do you want to improve your occupancy in low seasons?
- Interested in finding out which promotions work best in your market?
- Do you need to match your prices to the competition to maximise profitability?
- Are you looking for new opportunities to improve your customer experience?
Practical example:
If your hotel is in a highly competitive area and you notice that bookings are down, you could set this as your main target:
- Objective: Redefine tariffs and cancellation policies to attract more customers in the low season.
- Metrics of success: Increase occupancy by 15% in low-demand months.
Practical tip: Define SMART objectives (specific, measurable, achievable, relevant and time-bound). For example, "increase direct bookings by 10% in the next 3 months".

2. Identify your competitors (who are you really competing against?)
Not all accommodations in your area are true competitors. Correctly classifying your competitors is essential to avoid wasting time on irrelevant analysis.
Types of competitors:
Direct competitors:
Hotels with similar characteristics to yours (location, category, type of client).
Example: If you run a boutique hotel, other boutique hotels in the area would be your direct competitors.
Indirect competitors:
Accommodation that offers an alternative, even if it does not have the same focus as your hotel.
Example: Tourist flats that could attract customers interested in more flexible stays.
Criteria for identifying competitors:
- Location: Are they in the same area or in a location that might be preferred by your customers?
- Market segment: Do they compete for the same customer profiles (business, families, couples, backpackers)?
- Type of services offered: Do they offer services similar to yours (spa, restaurant, additional activities)?
Practical tools for identifying competitors:
- Google Maps and local searches:
- Search with terms such as "hotels near [your location]" and analyse the results.
- Use Google Street View to identify nearby accommodation not listed on OTAs.
- OTA platforms (Booking, Expedia):
- Search for hotels in your area using the same filters that your customers would apply (prices, stars, services).
- TripAdvisor:
- Search for hotels in your area with similar ratings to yours and check customer reviews.
- Competitive intelligence tools:
- STR Global: Provides comparative analysis of occupancy and average rates in your market.
- OTA Insight: Ideal for monitoring competitors' tariffs in real time.
3. Collect relevant information (Data that matters)
Once you have identified your competitors, it is time to collect relevant data. At this stage, it's not just about looking at prices, but about thoroughly analysing all aspects that can influence the customer's decision.
Key areas for data collection:
- Tariffs and pricing strategies:
- Monitor rates during different days of the week and seasons.
- Analyse whether they use dynamic pricing or fixed tariffs.
- Promotions and packages:
- Identify whether they offer extended stay discounts or special promotions (e.g. romantic packages or family discounts).
- Reviews and online reputation:
- Examine reviews on platforms such as Google, Booking and TripAdvisor for recurring patterns.
- Additional services:
- Do you offer transportation to the airport?
- Do you have loyalty programmes?
- Do they include personalised services such as local experiences?
Recommended tools for data collection:
- Google Alerts: Set up alerts to receive notifications about mentions from your competitors.
- Revinate: To analyse trends in reviews and reputation.
- OTA Insight or RateGain: They monitor dynamic prices and rates in real time.
Practical tip: Take time to visit your competitors' websites to see how they present their offer and what messages stand out.
4. Analyse the price structure
Price is a decisive factor for many customers. Therefore, studying the pricing strategies of your competitors is crucial.
Key issues to analyse:
- Tariff structure:
- Do you offer flexible, non-refundable fares or early booking discounts?
- Cancellation policies:
- Do they allow free cancellations or do they apply strict penalties?
- Seasonal differences:
- How do you adjust prices in high, mid and low season?
- Prices by customer segment:
- Do you have special rates for companies, families or groups?
Recommended tools:
- ParityRate: Analyse fare differences between multiple OTAs.
- RateGain: Compare fares in real time.
5. Evaluate the quality of services (Understand what customers are looking for).
To stand out in the market, you not only need to match your competitors' services, but surpass them in quality and customer service.
How to assess the quality of services:
- Review of reviews:
- Create a list of the services most mentioned by customers (positively or negatively).
- Group reviews into categories such as cleanliness, customer service, facilities and food.
- Analysis of the differentiating offer:
- Identify what your competitors offer that you don't (e.g. local activities or personalised experiences).
- Consider implementing unique services that are not common in your market (e.g. themed breakfast with local products).
- Mystery Shopper:
- Conduct an anonymous visit to competitor hotels to experience their services first-hand and detect strengths or weaknesses.
6. Research digital presence
In a digital world, a well-designed online presence can make all the difference. Here is a list of aspects to evaluate:
- SEO: Are they ranked at the top for relevant searches?
- Booking engine: Is it easy to use and does it have transparent pricing?
- Social networking: How active are they? What kind of content do they publish?
Tools for analysing digital presence:
- SEMrush or Ahrefs: Analyse your competitors' web traffic and SEO strategies.
- SimilarWeb: It provides data on the traffic and sources of visits of competing websites.
7. Monitor your online reputation (opinions and public perception).
Online reputation is a reflection of how customers perceive your competitors. Here is an advanced guide to monitor and learn from their strategies.
A. How to monitor effectively:
- Key platforms:
- TripAdvisor, Google Reviews, Booking, Expedia.
- Patterns to look for:
- Recurrent strengths: "Friendly staff", "comfortable beds".
- Recurrent weaknesses: "Noises in the room", "delays in service".
- Response to comments:
- Evaluate how competitors respond to negative and positive reviews.
- Do you offer quick solutions or detailed explanations?
B. Tools:
- TrustYou: To monitor trends in online reputation.
- Google Alerts: Set up alerts to receive notifications about reviews from your competitors.
8. Establish a plan of action (How to use the data obtained).
- Adjusts dynamic tariffs: Use competitor pricing data to programme strategic discounts in OTAs.
- Create targeted promotions: Themed packages (family, romantic, etc.).
- Improve your digital presence: Invest in SEO and social media campaigns
.
Methods and tools for effective competition analysis
Conducting a competitive analysis involves not only looking at what other hotels are doing, but also transforming that information into actionable strategies. Here are proven methods and advanced tools to help you conduct a competitive analysis effectively.
1. SWOT analysis applied to the hotel competitive environment
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats and Opportunities) is a strategic technique that will allow you to organise the information gathered and detect key areas for action. Here we show you how to apply it specifically in the hotel sector:
How to use SWOT analysis in hotels:
- Strengths: What services or offers do you have that stand out from the competition? For example:
- A privileged location close to tourist attractions.
- Excellent online reputation with high ratings on Booking or TripAdvisor.
- Weaknesses: Identify areas where you are losing ground, such as:
- Basic services that your competitors offer and you don't (high-speed Wi-Fi, free breakfast).
- Limited digital presence or unintuitive booking engine.
- Opportunities: Explore trends or gaps in the market that you can exploit:
- High demand for sustainable and eco-friendly accommodation.
- Competitors with recurrent criticism that you can avoid.
- Threats: Look at external factors that could impact your business:
- New hotels with more competitive prices in your area.
- Shifts in customer preferences towards alternative accommodation, such as holiday flats.
Practical tip: Use visual tools such as Canva or Lucidchart to create an attractive and easy-to-interpret SWOT chart.

2. Using benchmarking to compare performance and services
The benchmarking is a process that allows you to identify industry best practices and compare them with your own. In the hotel context, it is ideal for measuring your performance against the competition and discovering what you can improve or replicate.
How to apply benchmarking in hotels:
Define the parameters to be compared:
- Average Daily Rate (ADR).
- Occupancy rate in different seasons.
- Ratings on platforms such as TripAdvisor, Google and Booking.
- Additional services (spa, airport transfer, activities).
Collect data on competitors:
Use advanced tools to collect relevant information (more details in the next section).
Analyse the gaps:
- Identify what your competitors do best.
- Assess whether these differences are directly affecting your occupation or reputation.
Practical example of benchmarking:
Let's say your hotel has an average daily rate of €80 while similar competitors are at €95 and offer free breakfast and spa access. Benchmarking will allow you to identify this gap and adjust your services to justify a more competitive price.
Tip: Benchmark on a regular basis (monthly or quarterly) to keep up with changes in the market.
3. Digital tools to monitor prices and online reputation
Digital tools are essential for gathering accurate and up-to-date data on your competitors. Here are some of the most effective ones and how to use them:
Price monitoring tools:
- RateGain:
- What it does: Monitor your competitors' dynamic fares in real time across multiple channels (Booking, Expedia, websites, etc.).
- How to use it: Set up alerts to receive updates when a competitor adjusts its prices.
- Key benefit: It allows you to adapt your rates quickly according to demand and competition.
- OTA Insight:
- What it does: Analyse rates and availability of competitors in OTAs and direct channels.
- How to use it: Create comparative charts to identify price differences and cancellation strategies.
- Key benefit: Spot opportunities to offer more competitive rates.
Tools for monitoring online reputation:
- TrustYou:
- What it does: It provides a detailed analysis of customer reviews on platforms such as TripAdvisor, Google and Booking.
- How to use it: Filter reviews by keywords to identify recurring themes such as "breakfast", "cleanliness" or "friendly staff".
- Key benefit: Detect strengths and weaknesses of your competitors to adjust your offer.
- Revinate:
- What it does: Centralises and analyses reviews across multiple platforms to identify trends in customer experience.
- How to use it: Set up weekly reports to track changes in the perception of your competitors.
- Key benefit: Stay informed about how customers rate other hotels in your market.
- Google Alerts:
- What it does: Notifies you every time your competitors are mentioned in reviews, news or forums.
- How to use it: Set up alerts for keywords such as "Hotel [Competitor name]".
- Key benefit: It allows you to keep abreast of any new developments or important changes in their strategies.
Tools for analysing digital presence:
- EMrush / Ahrefs:
- What they do: They analyse your competitors' web traffic, their keywords and the SEO strategies they are using.
- How to use them: Identify the organic keywords your competitors are ranking for and compare them to yours.
- Key benefit: It helps you develop more effective digital marketing campaigns and attract more organic traffic.
- BuzzSumo:
- What it does: Track your competitors' most shared and popular content on social networks and blogs.
- How to use it: Find out which posts generate the most engagement and get ideas to improve your content strategy.
- Key benefit: Identifies trends and issues of interest in the hotel sector.
- SimilarWeb:
- What it does: Analyse the source of your competitors' web traffic and their conversion rates.
- How to use it: Identify whether your visits come from OTAs, social media or organic search.
- Key benefit: Optimise your digital marketing efforts according to the most relevant traffic sources.