How to Spot Competitor Trends to Gain an Edge in Hospitality

The hospitality industry is incredibly dynamic and highly competitive. From independent boutique hotels to large international chains, everyone is vying for the attention of the same pool of guests. But in this highly competitive landscape, how do some brands rise above the noise while others struggle to keep their doors open?

The secret often lies in how well they understand their competition. By monitoring competitor trends and using those insights strategically, businesses can refine their offerings, attract more guests, and optimize revenue. 

If you want the same, let’s dive deep into how you can spot competitor trends and use them to gain a competitive edge.

Why Competitor Trends Matter

Competition in hospitality isn’t just about having the fanciest rooms or the best amenities. It’s about understanding your market, your audience, and most importantly, your competitors. Spotting trends in your competitors’ strategies can help you answer critical questions:

• Are they offering services that guests love but you don’t?

• Are they pricing their rooms differently during peak seasons?

• Are their marketing campaigns generating more buzz than yours?

By paying attention to these patterns, you can adapt your business to not just meet guest expectations but exceed them. 

Why Monitoring Competitor Trends is Crucial

Understanding competitor trends is not just about mimicking their success—it’s about staying relevant and evolving. Here’s why it’s vital:

1. Understanding Your Market Position

Your competitors provide a mirror to your own strengths and weaknesses. When you analyze their operations, pricing, and guest engagement, you’re not just learning about them—you’re learning about yourself. For example:

• Are your room rates competitive in your area?

• Do their reviews highlight perks or services you lack?

This analysis helps you define where you stand and what areas require improvement.

2. Adapting to Guest Preferences

Guest demands change constantly. What was considered a luxury five years ago—like free Wi-Fi—is now an expectation. Competitors often react to these changes quickly. By monitoring their moves, you can recognize trends in guest preferences and implement them before falling behind.

3. Staying Ahead of Surprises

The hospitality industry is full of curveballs—sudden discounts, tech upgrades, or innovative marketing campaigns from competitors can disrupt your market share. By actively tracking these changes, you can respond before they affect your bookings.

Key Areas to Analyze Competitor Trends

Let’s break down the critical aspects of competitor analysis and how to extract actionable insights.

1. Pricing Strategies

Pricing is often the first thing potential guests compare. It’s no surprise that dynamic pricing dominates the hospitality industry. 

Here’s what to focus on:

• Seasonal Pricing: Competitors often adjust rates during holidays, local events, or festivals. Are they raising prices while you’re leaving money on the table?

• Discounts and Promotions: Track their offers. Are they bundling services like spa treatments with bookings?

• Length-of-Stay Pricing: Do they offer discounts for extended stays that you aren’t?

2. Marketing Tactics

Competitor marketing campaigns offer valuable lessons. Study their:

• Social Media Presence: What platforms do they use? Are their posts getting higher engagement than yours? What types of content resonate most with their audience?

• Seasonal Campaigns: Are they running special campaigns for holidays or events?

• Email Marketing: Subscribe to competitors’ newsletters to see how they engage potential guests.

Example: If a competitor is running a successful referral program, think about implementing a similar initiative with your unique twist.

3. Guest Experience and Reviews

Guest reviews are like an open diary of your competitors’ strengths and weaknesses. Platforms like TripAdvisor or Google Reviews can reveal:

• Frequent Complaints: Are guests unhappy about the cleanliness, staff attitude, or food quality?

• Guest Praise: Are their personalized services or free amenities delighting guests?

Use sentiment analysis tools like Revinate or TrustYou to aggregate and analyze reviews.

4. Amenities and Offerings

The smallest additions can set your property apart. 

For example:

• Do your competitors offer perks like free airport transfers, pet-friendly rooms, or high-speed internet?

• Are they leveraging wellness trends by adding yoga classes or eco-friendly toiletries?

Spotting these gaps helps you design offerings that guests want but aren’t widely available yet.

5. Technology Adoption

In the digital age, technology adoption can be a game-changer. Competitors investing in tech might signal what your audience will soon expect.

Watch for:

• Contactless Check-Ins: Are they enabling faster, frictionless guest experiences?

• Mobile Apps: Do they have apps that simplify reservations or offer loyalty rewards?

• Chatbots: Are they using AI to provide 24/7 customer service?

Tools and Techniques for Spotting Competitor Trends

Using the right tools can make competitor analysis faster and more effective. Here’s how:

1. Social Media Listening Tools

Tools like Hootsuite or Brandwatch let you track your competitors’ campaigns, hashtags, and audience engagement. 

For example:

• If a competitor’s Instagram post showcasing their rooftop bar goes viral, you can identify what made it successful and replicate that success with your unique spin.

2. Review Monitoring Platforms

Platforms like Revinate and TrustYou collect reviews across multiple sites, making it easier to identify patterns. 

They help:

• Understand guest sentiment.

• Spot recurring themes in complaints or praise.

3. Market Intelligence Platforms

Leverage data platforms like STR reports for benchmarking performance metrics such as:

• Occupancy rates.

• Revenue per available room (RevPAR).

• Average daily rate (ADR).

These metrics allow you to see how your property stacks up against competitors.

4. Hotel Rate Shopping Tools

Real-time rate monitoring tools help you:

• Track competitor pricing in real-time.

• Identify seasonal patterns in discounts or offers.

• Optimize your revenue management strategies.

These tools also send real-time alerts when competitors adjust their prices, enabling you to respond swiftly and stay ahead. Here are some of the top hotel rate shopping tools to consider.

5. Competitor Website and OTA Analysis

Competitor websites and OTAs like Booking.com or Expedia offer rich data. 

Track:

• Promotional banners and special discounts.

• Loyalty program benefits.

• Customer reviews and responses.

Scraping data from these sources can reveal strategies that are working for your competitors.

Challenges in Monitoring Competitor Trends

While competitor analysis is powerful, it comes with challenges.

1. Over-Reliance on Competitor Data
   Copying competitors without focusing on your unique value can dilute your brand identity. Use insights to inform—not dictate—your decisions.

2. Data Accuracy
   Competitor data can become outdated quickly. Ensure your monitoring systems update information frequently.

3. Ethical Boundaries
   Avoid crossing ethical lines, such as using unauthorized methods to obtain competitor data. Rely only on publicly available information.

Practical Steps to Implement Competitor Analysis

Here’s a step-by-step guide to start monitoring competitor trends:

Step 1: Identify Your Competitors

Distinguish between direct competitors (similar size and location) and indirect competitors (different market segments that appeal to overlapping audiences).

Step 2: Choose the Right Tools

Invest in tools for pricing analysis, review monitoring, and marketing tracking. Examples include STR, RateGain, and Hootsuite.

Step 3: Create a Data Collection Framework

Define what data to track (e.g., pricing, marketing campaigns, amenities) and establish a schedule for reviewing updates.

Step 4: Analyze Insights

Combine quantitative (pricing, ADR) and qualitative (reviews, social media) insights to develop a clear picture of your competitors’ strategies.

Step 5: Implement Adjustments

Use competitor insights to:

• Update pricing strategies.

• Enhance guest experiences.

• Improve marketing campaigns.

The Role of Competitive Analysis in Shaping Future Strategies

Competitor analysis isn’t a one-time activity. Continuous monitoring helps you:

• Anticipate industry trends before they become widespread.

• Innovate with new services or technologies.

• Refine your positioning by aligning your strengths with market demands.

Example: If competitors are adopting sustainable practices, start evaluating eco-friendly initiatives for your property.

Conclusion

Competitor trends provide valuable insights that can shape your strategy, but they’re just one piece of the puzzle. Success in hospitality comes from combining these insights with a deep understanding of your guests’ preferences.

Start today—whether it’s subscribing to competitors’ newsletters, analyzing reviews, or leveraging rate shopping tools. The sooner you act, the faster you can gain an edge in this highly competitive industry.