Estimating demand and supply for your hotel destination

As a first step and before proceeding to identify opportunities in the different source markets, It is important to “really” understand who you are competing with as well as what type of product offerings you are competing for. This combined with an understanding of new supply being planned or added will also help define how aggressive you need to be in marketing your hotel.

Estimating supply of hotel rooms in your destination

What is it that you are looking for?

You are seeking to understand the current number of hotels and inventory within about 15 to 20 minutes driving radius of your property. In addition, it will help if you have additional information on certain key factors.  These factors may include location proximity, price point, product quality, length of stay (such as an extended-stay focus vs. non-extended-stay focus), room type (all-suite vs. standard), hotel age, or brand, among other factors.

How to do it?

There are a number of ways that this can be done. And often, it is a combination of these methods.

  • Option1 – Go to the most active Online Travel Agency (OTA) in your destination and search for all hotels. It could be a powerful regional OTA like Ctrip in China or Make My Trip in India or Jovago in East Africa. Or it could be
  • Option 2 – Use TripAdvisor
  • Option 3 – If you have an active tourism board which keeps accurate records, they can be a good port of call.
  • Option 4 – Your local hotel association or organisations like SKAL may be able to help
  • Option 5 – If you are in a well-developed hotel market, hotel intelligence solutions can be purchased from companies like STR

Newly opening number of hotels

Now, this is tricky territory. The best and most accurate way of doing this is by scouting the areas nearby, talking to other hoteliers in the area and pro-active networking within your industry. But it is vital to be aware of the changes in supply that will be happening in your area.

Estimating demand for hotel rooms in your destination

Demand in your market is influenced by a wide range of factors. And it is key to ensure that you have considered all of them before planning further.

Some factors to consider

  • Increases or Decreases in Year on Year Occupancies at other hotels in destination
  • Growth or decline in population
  • Growth or decline in industries
  • Increasing requirement for conferences and events
  • New flights to the destination
  • Search Engine Data
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Tags: Distribution strategy

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