A Case Study on Developing an Internet-Based Competitive Analysis and Benchmarking Tool for Hospitality Industry

In order to improve service quality and better understand, prepare for, and predict the marketing dynamics, it is essential to grasp the performance of other competing enterprises. Competitive analysis and benchmarking in the tourism industry are always challenging, especially for small businesses. Unique from the standardization of other manufacturing industries, hotels, restaurants, and attractions are diverse enterprises, each possessing unique characteristics. When comparing, it is difficult to benchmark one from another, especially for tourism properties across different locations. In addition, the performances of hotels, restaurants, and attractions in one destination are highly interlinked. This case study describes the development, functionality and the barriers for adoption for the Hospitality Performance Indexan Internet based benchmarking system. We compared the functionality of the HPI with the Star Report from Smith Travel Report, detailing the process of development and the barriers during the adoption process. Our experience shows that this type of system is valuable when utilized by hoteliers as well as members of convention and visitors bureaus. However, the adoption of the system faces several notable barriers, including different levels of computer and Internet knowledge and expertise, interfaces with a low level of usability, and unsupportive managers. More work is needed to help the staff members create a habit of entering data on a weekly basis. In developing technological systems for the hospitality and tourism industry, these barriers should be considered opportunities for future address.