Ever wonder why some hotels keep their rooms filled while others struggle with empty spaces? It’s no coincidence – it’s data-driven insight. In the hospitality industry, relying on guesswork and partial data can be costly. Here, Johan Öhman, founder & CEO of Suusify, reveals how independent benchmarking sheds light on hidden trends and helps hotels make data-driven decisions with confidence.
1. Seeing missed opportunities in the market
It’s easy to assume that if your bookings are low, everyone else is in the same boat. But this assumption can lead to missed opportunities. Johan paints a picture:
— Imagine there are 250 potential guests in your area this week. If you’re filling only 50 rooms out of 100, you might think you’re doing alright. It’s a 50% occupancy rate, after all. But what about the other 200 guests? They’re choosing competitors or skipping your hotel entirely—which is valuable revenue you’re not capturing.
Not relying on data at all is like navigating with a map that only shows your own property. Benchmarking, on the other hand, highlights untapped markets, overlooked segments, and emerging trends – from your hotel’s perspective. As Johan explains:
— Independent data helps you see where you’re missing opportunities, giving you the full market view and guiding your strategy to attract more guests. With this complete view, you can identify where you’re falling short and strategize to capture a share of those overlooked guests.
2. Gaining competitor performance insights
Without access to market data from relevant compsets, such as occupancy rates, ADR (Average Daily Rate), or RevPAR (Revenue Per Available Room), hotels are left to make strategic decisions in the dark. Johan highlights this limitation:
— Booking systems and OTAs don’t share performance metrics. Without this data, you’re left guessing about their market position.
By analyzing relevant compsets, hotels gain the ability to make more informed, strategic adjustments. He explains:
— Comparing yourself against competitors lets you see where your hotel can improve and where you can capture additional market share. These insights not only reveal gaps in your current strategy but also help you seize opportunities for growth and outperform your rivals.
3. Looking beyond OTAs and booking systems
On that note, using OTAs and booking systems for analysis is like looking into a room through a keyhole – you’re only seeing a fraction of it. Many hotels don’t realize just how limited their field of vision is when relying on these sources.
— OTAs show only part of the overall demand. Without a broader market view, you risk making decisions based on partial information, Johan explains.
A full-market perspective based on benchmarking data expands this view, incorporating trends, seasonal shifts, and guest preferences that extend beyond a single platform. Johan emphasizes:
— This wider view empowers your hotel to adapt to real market demand, not just the narrow slice provided by third-party platforms. With this insight, you’re better equipped to tailor strategies to meet actual market needs, capturing opportunities that you might otherwise miss.
4. Avoiding conflicts of interest with pure data
In the search for reliable data, hotels may encounter benchmarking providers who also offer consulting services. This dual role can create conflicts of interest, with data potentially skewed to encourage additional services.
— Hotels need unbiased data to make fair comparisons. When a provider has consulting interests, there’s always a risk that your data might be skewed toward promoting certain strategies, Johan explains.
Working with unbiased providers focused solely on accurate data removes this concern. Independent benchmarking isn’t attached to an agenda, ensuring the information is neutral and reliable. He continues:
— You’re getting neutral, transparent insights purely focused on the market, without any hidden influence. This objectivity builds trust, enabling you to base your decisions on reliable information rather than marketing spin.
Suusify combines its consulting expertise with uncompromised benchmarking data to support clients with impartial advice. Johan adds:
— This is where we at Suusify can really help our clients—as consultants with deep market experience, we provide guidance without compromising the integrity of the data. Our focus is on using objective insights to inform the best strategies for each unique client.
5. Reacting to market changes with timely data
In a fast-moving industry like hospitality, outdated data can be as limiting as no data at all.
— Reacting to market changes in real-time is essential. Even data that’s slightly out-of-date can lead to missed opportunities, as hotels react after competitors have already capitalized on changes. Yet some platforms don’t offer timely updates, Johan explains.
With up-to-date market intelligence, hotels can adjust their pricing, marketing, and operations strategies in sync with market shifts.
— Real-time insights mean you can adapt as conditions change. Access to current data empowers your hotel to respond to trends as they happen, helping you stay competitive and responsive in a constantly changing market, Johan points out.
6. Consolidating fragmented data into a single view
It’s not uncommon that relying on multiple OTAs and booking systems leads to fragmented data that make it challenging to get a cohesive view of performance.
— Managing data from various OTAs and booking systems can feel like piecing together a puzzle. Critical insights can slip through the cracks, making it harder for you to make timely and effective decisions, says Johan.
An independent data provider simplifies this process by consolidating everything from various sources into one accessible place.
— It’s a streamlined solution that saves you time and reduces errors, allowing you to focus on performance rather than piecing together data. Having all benchmarking data in one place enhances decision-making efficiency, enabling you to take proactive steps that improve performance, Johan highlights.
7. Taking back control from third parties
Heavy reliance on third parties means more than commission fees; it can also dilute your hotel’s brand identity. Johan warns:
— Too much dependence on OTAs cuts into your margins and limits your direct relationship with guests. This can hinder your control over brand and guest experience, which are crucial to long-term success.
He continues:
— On the flip side—independent benchmarking reveals guest preferences, competitive service insights, and market trends. This allows you to create personalized marketing campaigns that resonate, offer tailored amenities that meet guest expectations, and refine direct booking incentives. By strengthening customer loyalty and your hotel’s brand, you foster a more sustainable and profitable relationship with visitors.
8. Not leaving money on the table
For every empty room in your hotel, there’s potential revenue lost that adds up over time.
— Imagine having ten unsold rooms for ten nights. That’s income that could cover a staff member’s monthly salary. Capturing just a 5% larger share of the market will make a noticeable impact.
Johan means that benchmarking data allows hotels to track and adjust in real-time, creating a sense of progress as you see changes translate into tangible bookings and revenue.
— With independent benchmarking, it’s not just about having data; it’s about seeing actionable results and making an immediate impact on your bottom line, Johan adds.
Tired of seeing competitors fill their rooms while yours sit empty? It's time to flip the script. And don't just take our word for it – discover how Grand Curiosa harnessed Benchmarking Alliance’s impartial market insights to outshine the competition and boost their bottom line.
