Competitor index

The Competitor Index in RevControl creates a ranking of competitors based on stars, reviews, condition, and location. This ranking influences the competitor-based rate and can differ between weekdays and weekends.

During the hotel setup, you fill in the Competitor Index. In this index, you must enter certain criteria, resulting in a ranking. This ranking forms the basis for RevControl’s competitor-based rate. If your hotel targets different audiences on weekdays and weekends, you can create a separate ranking for the weekend based on location.

Competitor index

On the left side, you see the Competitor Set you have chosen. The first column is “stars” and the second is the “review score.” You can fill in the stars and review scores by looking up competitors on Booking.com and copying the number of stars and scores. The review scores can also be updated live by our rate shopping partner. Contact our Customer Success team if you want to enable the live review score feature.

The next step is to fill in the “build/renovations” column. These criteria are based on the hotel’s own assessment. What do you think of the condition of the competitor’s hotel? 5 means top condition, 4 means well-maintained, 3 means average, and so on.

The last step is to fill in the “location” column. This is also based on the hotel’s opinion. It is important to first determine the largest group of online bookers and which segment they belong to. What would this segment think of your hotel’s location and what score would they give it? What would the same segment think of the competitor’s location?

Note: The stars, review score, and build/renovation score are always the same. However, the location score can vary between weekdays and weekends. Therefore, the ranking can also differ between weekdays and weekends. This is because guests staying during weekdays often travel for business and have different preferences than guests staying on weekends (for leisure). Moreover, this allows hotels to choose a different pricing strategy for weekdays than for weekends. This way, you can ensure that your hotel is competitively priced on weekdays to achieve a higher occupancy rate, while maximizing room prices on weekends.

Based on the information entered in the Competitor Index, a ranking is created. This ranking is formulated as a weighted average per hotel. If your hotel, for example, has a higher ranking, the system will increase your hotel’s competitor-based rate using the algorithm. Now, RevControl can calculate the competitor-based rate for the coming year.

Note: The ranking you see in the Competitor Index does not directly influence the recommended rates but is meant to visually show how you rank compared to your competitors. The ranking results from the four criteria: stars, review score, build/renovation, and location. The rate recommendation is also based on these four scores, not the ranking itself.

There is one column not yet discussed: “use in rate recommendation.” It is possible to disable hotels so that RevControl does not consider their rates during the rate recommendation. This can be useful when a hotel in the competitor set is priced out of the market, causing the competitor-based recommended rates to be too high or too low. Nevertheless, the rates of the entire competitor set are shown in the Daily Index report.

Once the Competitor Index is filled in and saved, we recommend checking the competitor-based rate recommendation in the “Competitor Based Rate Check” report. Here, you see the competing rates considered and the rate calculated by RevControl based on the Competitor Index. If you are not comfortable with the calculated competitor-based rate recommendation, you can adjust the positioning in the Competitor Index until the competitor-based rates are just right.

With this approach, you can effectively use the Competitor Index to optimize your hotel’s pricing strategy for both weekdays and weekends.