Competitor Index for the competitor based rate recommendation
During the installation of your hotel, you will fill in the Competitor Index. In this index, certain criteria need to be filled in, resulting in a ranking. This ranking serves as the basis for RevControl's competitor based rate recommendation. If your hotel targets different audiences on weekdays and weekends, you can create a separate ranking for the weekend based on location.
On the left side, you will find the competitor set you have selected. The first column is labeled "stars", and the second column is the "review score". The stars and review scores can be entered by researching the competitors on Booking.com and noting down the number of stars and review scores. Additionally, the review scores can be dynamically updated through our rate shopping partner. If you wish to activate the live review score feature, please reach out to our Customer Success team.
The next step involves filling in the "build/renovation" column. This criterion is based on the hotel's own assessment. What is your opinion of the condition of the competitor's hotel? A rating of 5 indicates excellent condition, 4 means well-maintained, 3 means average, and so on.
The final step is to fill in the "location" column. This is also based on the hotel's perspective. It is crucial to determine the primary group of online bookers and their corresponding segment. What would this segment think of the location of your hotel? What rating would they assign to this location? Likewise, consider what the same segment would think of the location of your competitors.
Based on the information provided in the Competitor Index, a ranking is generated. This ranking is expressed as a weighted average per hotel. For example, if your hotel obtains a higher ranking, the system will adjust the rate using the algorithm. Consequently, RevControl can calculate a competitor based rate recommendation for the upcoming year.
One column that hasn't been discussed yet is the "use in rate recommendation" column. You have the option to disable certain hotels, preventing RevControl from considering their rates during the rate calculation process. This might be necessary if one of the hotels in your Competitor Set is priced out of the market, resulting in Competitor Based Recommended Rates that are either too high or too low. Nonetheless, the rates of the entire Competitor Set will still be displayed in the Daily Index report.
Once the Competitor Index has been completed and saved, we recommend reviewing the competitor based rate recommendation in the "competitor based rate check" report. Here, you can view the competitor rates that were taken into account, as well as the calculated competitor based rate provided by RevControl. If you are not satisfied with the calculated competitor based rate recommendation, you can adjust your positioning in the Competitor Index until the competitor based rate recommendations meet your requirements.