Research literature on revenue management emphasizes benchmarking as an important tool for integrating competitor pricing information. To remain competitive, hotels should keep an eye on their competitors’ pricing behavior to increase the hotel’s overall revenue and optimize their KPIs. This study examines the relationship between pricing strategy and the hotel’s position in terms of RevPAR, TRevPAR, and occupancy compared to competitors for 536 hotels over a 5-year period.

The objective of this research is to evaluate the opportunities for competitive pricing in the Croatian hospitality industry and to examine the impact of competitor pricing on relative hotel revenues to determine whether increasing or decreasing prices relative to competitors contributes more to RevPAR and TRevPAR growth. The research results show that hotels that set their prices higher than their competitors have lower occupancy as a result, but at the same time experience higher RevPAR and TRevPAR.