Marketing research of the hotel market and competitors, Questions...

Market research of the hotel market and competitors

Research, evaluation of the market and the competitive environment of the hotel enterprise. Competition in the market of hotel products and services is based on improving the technology and technology of hotel services, its organization, the qualification of labor resources, the quality of service, the image of the hotel on the market , accessories of the hotel to a well-known hotel brand, etc. According to modern foreign research, the hotel business has reached a high level of internationalization with high growth rates and strong competition.

Competition - rivalry of hotel enterprises as subjects of market relations for the best conditions and results of commercial activity.

There are three types of competition for hotel companies:

1) functional competition , where a large market variety of hotel products and services satisfies a certain market need. For example, accommodation of tourists can provide hotels of various categories, and provide them with meals for restaurants of different classes;

2) Specific competition occurs when enterprises have products and services of the same purpose and relatives in many ways, differing in their essential characteristics for consumers location of hotels, availability of parking lots, room comfort, etc.);

3) subject competition , arising from the presence of identical products and services from enterprises, for example, in hotels of the same category.

We can assume that, in general, hotel companies operate in conditions of severe competition, aggravated in the globalization of the hotel business.

A competitive environment is an environment in which hotel companies compete in the face of constant threats of new competitors.

The competitive environment and the intensity of competition in it largely determine the activity activity of the hotel company, have a significant impact on its marketing decisions, its plans and policies.

Each hotel company serves a certain range of consumers, works in a specific competitive environment, determined for him by a specific market.

The markets on which hotel enterprises can operate are classified by a number of characteristics, including territorial coverage, intensity of the competitive environment, qualitative market structure, features and content of marketing activities (Table 3.14).

In addition, opening a new business or expanding an existing hotel company must clearly represent in which industry market it will operate, know its competitive environment with its characteristics, ie, its business environment. to represent its competitive model and its structural components.

In Table. 3.15 presents possible competitive models of the hotel market with their structural components, including the number of firms on the market and their size, the conditions for entry into the hotel industry, the type of hotel products, the possibility of price control, forms of competition, access to information.

Table 3.14

Classification of markets by feature






Market Type

Market characteristics


Territorial coverage

1.1. Local


in a specific location

1.2. Regional, as part of the country

in the region

1.3. National

across the country

1.4. Regional by group of countries

as part of a group of countries

1.5. World

at the world level





2.1. Developing

Market structure:

the composition of the market increases

2.2. Cutting

the composition of the market is shrinking

2.3. Stable

little changes in the composition of the market

2.4. Unstable

volatile market composition

2.5. Stagnant

declining market composition


Qualitative Market Structure

3.1. Potential


Wishing to purchase a product






Market Type

Market characteristics


Qualitative Market Structure

3.2. Valid

Payee-wearing nightgowns who have access to products

3.3. Qualified

Clients from the previous position who have not realized their need for the product are excluded

3.4. Served

having the opportunity to choose a product from all its diversity, including those of competitors

3.5. Mastered

giving preference to the products of this enterprise


Features and content of marketing activities

4.1. Trusted

The market at which the enterprise: realizes its goals

4.2. Primary

sells most of the products

4.3. Growing

has the ability to increase sales

4.4. Overdue

conducts unstable commercial operations, but under certain conditions the market may become more active

4.5. Infertile

has no prospects for implementing individual products

The market of perfect (pure) competition is characterized by a large number of equal sellers and buyers, the uniformity of the product being sold, free entry and exit from the market, open access of its participants to information, including the price of products. In other words, it is such a type of market structure where the behavior of sellers and buyers consists in adapting to the equilibrium state of market conditions.

The market of pure competition is possible in the hotel business if there are a number of competing small hotels on a certain territory.

Monopolistic competition is common in the hospitality industry and, above all, concerns resort hotels. These hotels are hardly distinguishable by category, but they have significant differences in the additional services. This competition is also typical for the entertainment and catering industry.

Oligopoly is typical for the car rental market and is much less present in the hotel business. But in some cities and regions where there are few hotels, this type of competition also occurs.

Pure monopoly is manifested in conditions when substitute products are not available to the consumer due to high prices, which are higher the more

quality products are different products of enterprises. Enterprises-monopolists set high prices for their products, and consumers have the right to purchase or refuse these products.

Table 3.15

Competitive market models with their structural components

Competitive market model

The number of firms and their sizes

Entry into the industry

Product type

Control over price







1. Perfect competition

1.1. Pure competition

The number of small firms



Homogeneous, standardized


I (Еенавая

Equal access to all kinds of information

2. Imperfect competition

2.1. Monopolistic competition

Relatively many independent firms




Product differentiation









2.2. Oligopoly

The number of firms is small, medium and large

Having a significant obstacle

Heterogeneous or homogeneous

Limited or significant (with collusion)

I The Price

More Than



2.3. Pure Monopoly



is small




Many unavailable replacement products




Pure monopoly is rare, including in the hotel business, where there are many competitors and substitute products.


Based on the results of the company's research, "Invest-Audit" Perm is in outsiders but is provided with hotels in comparison with Kazan and Ekaterinburg. The structure of the Perm hotel market is characterized by an oligopoly - 25% of the total number of guests falls at the hotel "Ural". In addition, because of the low level of competition, another 50% of the market share only four hotels. In turn, the market of Yekaterinburg and Kazan is stronger than the competition, as there the entire market has divided relatively equal hotel complexes (monopolistic competition).

This classification of markets facilitates the hotel enterprise special marketing research of competitors in order to better meet the needs of customers and, as a result, improve the efficiency of their activities.

Survey of the competitive environment of hotel enterprises allows:

1) identify and analyze hotel companies that occupy the most and least favorable market positions;

2) determine the position of the analyzed hotel company in the industry, its competitive position, the ability to protect itself from negative factors, use opportunities and strengths to ensure its own competitive advantages.

As a result, the evaluation of the competitive environment of the hotel enterprise should provide for the following aspects:

• the number of hotels being researched and their sizes;

• intensity of competition (weak, moderate, strong);

• the likelihood of new businesses appearing on the market (high, medium, low, assessment of input barriers),

• competitive pressure from manufacturers of substitute products (strong, moderate, weak, causes);

• the degree of supplier influence (high, medium, minor, reasons);

• degree of influence of clients (high, medium, minor, reasons).

All these aspects of the competitive environment have a direct impact on the activities of the hotel company and should be reflected in its marketing strategy.

For each hotel company it is important to distinguish possible competitors and highlight:

• The nearest, forming one strategic group with the hotel company,

• potential (expanding the range of products and services offered, new businesses entering the market),

• remote, entering into other strategic groups of enterprises.

After the establishment of the nearest competitors, it is necessary to collect and analyze information regarding their activities. This information can be of a quantitative or qualitative nature.

Quantitative data can provide the following information:

• number of nearest competitors of the hotel company

• availability of a specific number of trademarks;

• Produced hotel products and prices for them;

• Cost structure in the development and sale of products;

• the markets involved and the shares held;

• main consumers;

• Conducting advertising campaigns;

• the channels of promotion used.

Quality information contains the following information:

• the image of competitors;

• Staff qualifications;

• Familiarity of the management team;

• the quality of products and services;

• Customer loyalty;

• features of the current organizational management structure;

• Characteristics of the corporate culture.

This information is available to hotel companies from statistical compilations; price lists; mass media; catalogs, prospectuses, exhibition and promotional materials; annual reports of organizations; opinions of experts and buyers; results of previous marketing research, etc.

Collection, processing and analysis of information about the competitive environment of the hotel company will allow him to get answers to the following questions:

1) which hotels operating in the market are competitors;

2) what market share each competitor occupies;

3) what marketing programs competitors use and how effective they are;

4) how competitors react to the marketing actions of the hotel enterprise;

5) at which stage of the life cycle are the products of competitors;

6) what are the financial condition of competitors, their organizational structure and management level

7) What is the marketing strategy of competitors, and what methods do they use to fight for the market.

Formalization of the collection, processing and analysis of information about competitors. Collecting information about competitors in practice is associated with considerable difficulties. To overcome them, M. Porter proposed two models for collecting information on the individual characteristics of competitors [53]. The simplest of them is shown in Fig. 3.7.

The process of assessing the individual characteristics of competitors includes seven stages:

1) determination of the general range of competitors of the enterprise;

2) identifying potential competitors;

3) establishing a list of required information on these rivals;

4) conducting a strategic analysis of this information;

5) presentation of information in an accessible form;

6) developing a strategy based on this analysis;

7) Observing competitors and studying the environment for the appearance of potential rivals.

If the evaluation of the individual characteristics of competitors is correctly conducted, then it becomes one of the main competencies for the development of the competitive advantages of the hotel enterprise.

Methods for identifying the nearest and potential competitors. Let us dwell on the simplest and most accessible ways to determine the closest competitors for a hotel company:

Fig. 3.7. Components of competitive research

Table 3.16

Matrix of forming a competitive market map

Rates of growth (reduction) in market share (T),%

Market share,%

Market leaders (with market share above 40%)

Hotels with a strong competitive position (with a market share of 15 to 40%)

Hotels with a weak competitive position (with a market share of 5 to 15%)

Market outsiders (with market share less than 5%)





Hotels with a rapidly improving competitive position (increase of more than 10%)


Competitor # 3





Hotels with an improving competitive position (increase from 1 to 10% inclusive)





Hotels with a deteriorating competitive position (reduction from 1% to 5% inclusive)





Hotels with a rapidly deteriorating competitive position (a reduction of more than 5%)



Competitor # 1




# 2

1) a method based on the use of the selection of strategic groups of competitors , discussed in detail in paragraph 3.6;

2) method , based on determining the market status of hotel businesses using a competitive market map.

The competitive market map is built using two indicators: the market share and its dynamics (Table 3.16).

According to the market share, there are four standard positions of hotels on the market:

1) market leaders;

2) hotels with a strong competitive position;

3) hotels with a weak competitive position;

4) market outsiders.

The same number of standard hotel locations also distinguish themselves according to the dynamics of the market share: hotels with rapidly improving competitive positions (1); hotels with an improving competitive position (2); hotels with a deteriorating competitive position (3); hotels with a rapidly deteriorating competitive position (4).

The competitive market map is based on the cross-classification of the size and dynamics of the market share (see Table 3.16). As a result, 16 typical positions of hotels characterize their market status. When classifying them, priority is given to the indicator of market share dynamics.

The most significant market status is enjoyed by the first group of hotels (market leaders with a rapidly improving competitive position), the weakest - enterprises of the 16th group (outsiders of the market with a rapidly deteriorating competitive position).


Rate the position of the hotel X and its competitors using a competitive market map (see Table 3.16).

All the hotels analyzed in accordance with their position on the competitive market map have the following market groups: competitor No. 3 has the status 1, hotel X - status 5, competitor No. 1 - status 8 and competitor No. 2 - status 16.

Therefore, the strongest position in the market for competitor No. 3. At the hotel X - a stronger position than competitors # 1 and # 2.

Conclusion: Competitors № 3 and № 1 are the nearest competitors of the hotel.

In addition to the approaches considered, it is possible to identify the nearest and potential competitors based on the purchasing value of products of hotel enterprises for consumers. In this case, the hotel company, by polling customers, sets the main competitors for this indicator.

Questions and tasks for self-control

1. Give the definition of the term "marketing research".

2. List the main goals and objectives of marketing research.

3. Name the types of marketing research and explain their essence.

4. List the main stages of marketing research and disclose their content.

5. Describe the system of methods of marketing research and its components.

6. What methods of marketing research are specific only for marketing?

7. What is a marketing information system, its components, as well as the processes of collecting and processing information?

8. Describe the goals, directions and methods of analysis of the external environment.

9. How are expert methods used in assessing the influence of macro-environment factors?

10. Describe the main tasks and methods of industry analysis.

11. What are the objectives and methods of management analysis?

12. Give a description of the main areas of analysis of consumers of hotel services, methods and approaches used.

13. What are the distinguishing features of various types of competition characteristic of hotel enterprises?

14. On what grounds can you classify markets?

15. Describe competitive market models in the hotel industry and their features.

16. Uncover the basic parameters of marketing research of competitors.

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