How to Build the Right Competitive Set for Your Short-Term Rental

A competitive set, often called a comp set, is a group of properties used to understand how a short-term rental compares with alternatives in its market.

Choosing the right properties matters.

If the competitive set is poorly constructed, the resulting analysis may provide an inaccurate picture of the property's positioning and revenue opportunity.

Why Bedroom Count Is Not Enough

A common approach is to search for properties with the same number of bedrooms and treat them as direct competitors.

But bedroom count is only one characteristic.

Imagine two five-bedroom rentals.

One has a private pool, hot tub, designer interiors, and space for twelve guests.

The other is a basic five-bedroom rental without those features.

Both may appear in similar searches, but they do not necessarily deliver comparable guest experiences.

Using the second property as the primary benchmark for the first could overlook meaningful differences.

Start With Location

Location is an important part of competitor analysis.

Consider where the property sits relative to the experiences guests are seeking.

Two properties in the same destination may have different appeal depending on their immediate surroundings.

However, location should not be the only criterion.

A nearby property with substantially different quality or amenities may be less relevant than another property that offers a similar experience.

Compare Guest Experience and Amenities

Evaluate what the guest receives from each property.

Look at pools, hot tubs, outdoor living spaces, interior design, views, and other features that define the stay.

The objective is not to count amenities mechanically.

It is to understand how the properties compare as experiences.

A premium vacation rental should be evaluated against alternatives that guests would reasonably consider for a similar trip.

Evaluate Design Quality and Positioning

Property presentation influences how guests perceive the offering.

Compare interior quality, overall design, listing photographs, and the level of experience communicated.

A property with designer finishes may occupy a different position from a simpler home of the same size.

The competitive set should recognize that difference rather than assuming all inventory is equivalent.

Understand the Target Guest

Competitors are ultimately competing for guests.

Ask whether the properties appeal to similar travelers.

Are they designed for large groups, families, luxury experiences, or more budget-conscious stays?

Properties serving different audiences may follow different booking patterns.

Understanding the intended guest helps determine whether a comparison is meaningful.

Include Booking Behavior and Revenue Positioning

Professional competitor analysis also considers how properties perform.

The Episode 2 framework identifies booking behavior, market positioning, and revenue potential as relevant comparison dimensions.

This expands the analysis beyond appearance.

Two properties may look similar while attracting bookings differently.

That distinction matters when interpreting pricing and revenue estimates.

Use the Comp Set to Inform Strategy

A competitive set is not simply a list of nearby rates to copy.

It provides context for understanding where the property belongs in the market.

From there, revenue managers can examine top-performing competitors, historical results, demand patterns, and revenue estimates.

These inputs help inform the property's revenue target and pricing strategy.

Your Guests Decide Who Your Competition Is

The most useful competitive set reflects the alternatives guests genuinely consider.

Start with location and property characteristics.

Then examine experience, quality, amenities, target audience, booking behavior, and positioning.

The result is a more meaningful foundation for evaluating revenue potential.

The objective is not to match every nearby listing. It is to understand the market position your property can realistically occupy.