Fair Market Share

What is the meaning/definition of Fair Market Share in the hospitality industry?

Fair Market Share is an indication that a hotelโ€™s overall performance stacks up against its immediate competitors.

A hotel within a competitive set can work out if itโ€™s getting its Fair Market Share through a simple calculation:

  • Fair Market Share = Total number of rooms at the hotel / Total number of rooms in the comp set

However large or small the comp set, a hotel trying to make itself more competitive can use a Fair Market Share tool to compare its individual percentage to their comp set.

During peak times, a hotel can gather important info about the performance of the other hotels in their comp set. Then, using a Fair Market Share tool, it can discover how it compared to other hotels during those busy times. This can help when planning ahead. There are several ways to measure your fair market share.

Here you can find examples: Market Penetration Index

See also:

Synonyms

  • Fair Market Share

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About the Author:

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.