What is the average number of hotels in a competitive set?

What is the average number of hotels in a competitive set?

• A. Between 3 and 4
• B. Between 4 and 5
• C. Between 5 and 6
• D. Between 6 and 7

Answer: (C)

The average number of hotels in a competitive set typically falls between five and six. This range allows for a balanced comparison among properties that share similar characteristics, such as location, amenities, and target market segment. Having too few hotels in a competitive set can limit the ability to draw meaningful insights and competitive benchmarks, while too many can dilute the relevance of comparisons. The chosen range of five to six strikes a practical balance, enabling hotels to accurately gauge their performance against a substantive yet manageable number of similar properties. Other options suggest fewer or more hotels, which would not provide as robust a competitive analysis and could lead to skewed interpretations of market position and performance. The five to six range represents a common practice in the industry for cultivating a competitive environment conducive to strategic analysis.

The average number of hotels in a competitive set typically falls between five and six. This range allows for a balanced comparison among properties that share similar characteristics, such as location, amenities, and target market segment. Having too few hotels in a competitive set can limit the ability to draw meaningful insights and competitive benchmarks, while too many can dilute the relevance of comparisons. The chosen range of five to six strikes a practical balance, enabling hotels to accurately gauge their performance against a substantive yet manageable number of similar properties.

Other options suggest fewer or more hotels, which would not provide as robust a competitive analysis and could lead to skewed interpretations of market position and performance. The five to six range represents a common practice in the industry for cultivating a competitive environment conducive to strategic analysis.