Each hotel must conduct an annual external and internal analysis to prepare its Strategic Plan and Budget.
External analysis provides hoteliers with insight into what's happening in the market. This includes consumer trends (demand) and competitors' (supply).
By understanding consumer and competitor behaviors, a hotel or hospitality company can better position itself to meet the needs—and overcome the specific challenges—of its market.
The 20 questions to ask during an external analysis are:
- Are there any new products that have entered the market since the last analysis that could be considered competition?
- What kind of new inventory is coming into my market?
- Has any inventory left the market?
- If so, why?
- Was it closed permanently?
- Is it closed for renovations with the intention of reopening?
- When was each competitor's most recent renewal?
- Is there any construction near any of my competitors?
- Have any of my competitors changed their brand or hotel manager since the last analysis?
- What benefits have been added or lost with this change, such as distribution partners, RMS, representation, or commercial outsourcing?
- Have any of my competitors implemented revenue management systems or changed distribution partners since the last analysis?
- What reviews (online reputation) are my competitors receiving on social media sites?
- Are there any significant citywide events driving demand?
- If so, what is the volume of that demand and what dates will be impacted?
- Are there any events in the city that won't be coming back?
- Have any major companies entered or exited my market in the last year?
- For example, which office spaces might be currently empty or have recently been occupied?
- What future economic developments are planned?
- What is the schedule for these developments?
- Have any major companies in the market been acquired recently?