Competitive set

A competitive set is a group of businesses seen as direct competitors to a particular company. Most commonly used in hospitality, it refers to a curated list of hotels or restaurants that are similar in terms of location, size, and service level.

Businesses use a competitive set as a benchmark to compare their performance, pricing, and positioning. It helps marketing teams craft offers and promotions to differentiate their product.

For example, a hotel selects five properties of the same classification and tracks their data (e.g., occupancy rate, ADR, RevPAR) to gauge its performance against the direct competitors.