This is a guest post by Jeong, pronounced “Jung”, Pyon. He is the Director of Revenue at the Trump Vancouver, Canada. A good friend of mine with whom I have spent countless hours talking about Revenue Management. The numerous conversations and observing his work lead me to inviting him to contribute this article.
The hospitality industry is one of the few industries that are fortunate enough to have a ‘report card’, AKA ‘STR Report’, that shows where you stand against your competition on a weekly basis. By reviewing the STR Report, the hotel is able to identify whether their rate strategy had succeeded or not.
Unfortunately, many hotels are not using the STR to its fullest potential, and some are even using it for the wrong purpose. In all fairness, sometimes it is difficult to define the comp set due to the vast number of hotels around you, or the lack of hotels in your immediate surroundings. However, if you follow the logic below, you should have little problem defining your true comp set.