Part 8 of eviivo’s Smart Pricing Series
Why competitor benchmarking matters
Hospitality is inherently competitive – and success often comes down to who offers the best value, rather than the lowest rates.
Benchmarking your rates against similar properties helps you understand your market position, spot missed opportunities, and make smarter decisions – without guesswork or race-to-the-bottom pricing.
This final post in eviivo’s Smart Pricing series explains how to monitor and compare your prices effectively using simple research and the data in your Property Management System (PMS).
What is price benchmarking?
Definition:
Price benchmarking means comparing your property’s rates and performance metrics (such as occupancy, ADR, and RevPAR) to those of similar competitors in your area.
Why it matters:
It helps you:
- Understand where your property stands in the local market
- Identify if you’re undercharging or overpricing
- Support data-led pricing adjustments and promotions
- Build confidence in your rate strategy
Step 1: Identify your competitor set
Start by choosing 5–10 properties that closely match yours. Look for:
- Similar size and category (e.g. boutique hotels, vacation rentals, serviced apartments)
- Comparable amenities (e.g. breakfast included, pet-friendly, parking)
- Same geographic area or neighborhood
Pro Tip:
Guests often compare different accommodation types. Include a mix of hotels and rentals if they serve the same traveler profile.
Step 2: Gather competitor data
You can collect data on your competitor set from:
- OTA listings: Check rates, room types, and availability for similar dates.
- Google and meta-search results: See how your property appears alongside others.
- Local tourism sites: Identify how destinations and regional trends affect pricing.
Use the key figures and reports in your PMS to help you compare your ADR and occupancy against these benchmarks – giving you context for your rate decisions.
Step 3: Compare rates and key performance metrics
To see how your rates stack up against your competitor set, build a simple comparison table and fill it with the rates they publish at key dates throughout the year.
For the most accurate comparison, make sure you compare like-for-like rates (i.e. matching room types and rate plans).
Other valuable data to seek on your competitors include a few essential comparative KPIs:
| Metric | What it Measures | Why It’s Important |
| ADR (Average Daily Rate) | Average rate per sold room | Reveals your rate strength |
| Occupancy Rate | Percentage of rooms sold | Shows booking efficiency |
These comparative insights can help drive your pricing decisions.
Example:
If your ADR is $150 and competitors average $140, but your occupancy is lower, it may be worth running a short-term offer to stimulate bookings.
Step 4: Analyze timing and flexibility
Benchmarking is about what others charge – and when they charge it.
Look for trends in:
- Advance pricing: Do competitors publish rates months ahead, or closer to the date?
- Seasonal shifts: How do their prices move across high and low seasons?
- Package options: Are they offering added value or just discounts?
Knowing these details may help you decide when to open new rate periods and when to hold firm.
Step 5: Track changes and trends over time
Revisit competitor pricing regularly – not daily, but at logical intervals (monthly or seasonally).
eviivo Suite’s built-in performance reporting tools allow you to track:
- Your own rate and occupancy trends
- The effects of local events on performance
- How your property’s RevPAR changes over time versus competitors
This ongoing awareness helps you adjust confidently and stay ahead without constant manual comparison.
Step 6: Focus on value, not just price
Benchmarking is about context, not copying. Guests don’t always choose the lowest rate. Instead, they often choose the stay that offers the most perceived value.
Therefore, make sure to showcase what makes your property unique:
- Personalized guest experiences
- Convenient amenities
- Flexible policies
Your PMS and website are key tools for communicating this value and converting lookers into bookers.
Common benchmarking mistakes to avoid
- Ignoring differences in property size or service level
- Failing to review your own performance data
- Comparing prices for mismatched room types or amenities
- Trying to undercut competitors constantly
Key takeaway
Effective benchmarking requires understanding your market, your guests, and your strengths.
Use eviivo Suite to stay informed, plan ahead, and price confidently – so your property stands out for all the right reasons.
Download your free Smart Pricing guide
You’ve now learned how to:
- Track your key pricing metrics
- Forecast demand using PMS data
- Simplify rate changes with dynamic pricing
- Create effective promotions and packages
- Understand guest psychology
- Avoid common pricing mistakes
- Build a year-round pricing calendar
- Benchmark confidently against your competition
Together, these principles form a complete, practical approach to smart pricing – helping your accommodation business achieve more with less effort.
Ready to take it further?
Download the full “How to Build an Effective Pricing Strategy” guide for detailed strategies, examples, and templates built to make your accommodation more profitable.
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