Market share meaning in hospitality

Market share is the percentage of the market a business or product has. In hospitality, it’s the percentage of total sales or customers a hotel, restaurant or other hospitality business has compared to its competitors in an area or market segment. For example, if a hotel chain has 30% of all bookings in a city, that’s its market share in that location.

Understanding market share is key for hospitality businesses as it measures performance against competitors and identifies growth opportunities. A higher market share means more revenue, better brand recognition and more power with suppliers. It also shows how well a business is meeting customer needs versus its competitors. By tracking market share, hospitality managers can see trends, adjust strategies and make informed decisions on pricing, marketing and expansion.

Let’s say you’re the manager of a beachfront resort. You notice your market share has dropped from 25% to 20% over the last year. You investigate and find out a new resort nearby is attracting families with their kid-friendly facilities. You decide to renovate your kids' play area and introduce family-focused activities. After making these changes, you see your market share go back up to 23%. This shows how understanding and reacting to market share fluctuations can help you stay competitive and improve your business in hospitality.'