Blog Article
Where Hotel Performance Is Decided Today
Most hotels are competing too late. In today’s hospitality market, performance is no longer defined at the moment of booking, but much earlier in the decision process. Travellers often decide where to go first, while leaving the accommodation choice open, creating a second layer of competition within the destination itself. As a result, the assets that capture demand are not necessarily those that convert best at booking, but those that enter the traveller’s consideration set early and remain relevant throughout the decision journey.
Main Insights
Most hotels compete at the booking stage, but the decision is often shaped earlier
The real competition happens within a limited shortlist, not across the full market
Assets that fail to enter early consideration never effectively compete
Positioning and brand alignment determine who captures demand, not visibility alone
The Decision No Longer Starts at Booking
The process of choosing a hotel has moved beyond the moment of booking and into a longer, multi-stage journey. Travellers increasingly decide on a destination first,while leaving the accommodation decision open for a longer period.
According to the European Travel Commission Monitoring Sentiment for Intra-European Travel (2025), only 44% of travellers have fully booked their trips, while a significant share have already selected a destination but continue evaluating accommodation. In parallel, over 50% of respondents report actively comparing multiple options before booking, highlighting a clear increase in decision complexity.
This creates a second layer of competition within each destination. Hotels are no longer competing only to be booked. They are competing to remain under consideration across a longer period of evaluation.
The Journey Is Fragmented, But the Outcome Is Narrow
Once the destination is defined, travellers move through a fragmented decision process across multiple channels. They use search engines, travel platforms, maps and increasingly AI tools, not in sequence, but in parallel. The journey is extended, but it is not open-ended.
Data from the European Travel Commission shows that search engines and travel platforms each account for around 21% of planning interactions, followed by maps at approximately 15%.
Despite this fragmentation, the outcome tends to narrow quickly. Travellers progressively reduce the number of options they consider, often forming a shortlist early in the process and returning to it multiple times before booking.
The journey may appear more complex, but the competitive field becomes smaller over time, not larger. What matters is entering that field early enough to remain relevant.
Most Hotels Are Competing Too Late
This shift creates a structural mismatch in how many hotels approach demand. While the decision process has moved earlier, most assets remain positioned to compete at the final stage, focusing on pricing, availability and platform visibility.
However, by the time a traveller reaches that stage, the decision has often been largely shaped. The shortlist has already been formed through earlier exposure, brand familiarity or perceived fit.
Data from the European Travel Commission supports this dynamic. Travellers may delay booking, but this does not mean they are evaluating all available options equally. Many assets are excluded before they are actively compared.
This aligns with broader ETC findings showing that travellers engage with multiple sources before booking, reinforcing early-stage filtering.
By the time pricing becomes a factor, the outcome is often already influenced. Competing at that stage means working within a decision that has largely been framed in advance.
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MASANA as a Case of Early Demand Capture
Masana Algarve provides a clear example of how these dynamics translate into asset-level positioning.
The asset was acquired and repositioned by VIDA as part of a strategy focused on transforming underutilised hospitality properties into clearly defined, experience-led concepts. The repositioning addressed not only the physical product, but also how the asset is perceived within the decision journey, ensuring it is easier to understand and evaluate at earlier stages.
Following this transformation, Masana was integrated into Destination by Hyatt, marking the brand’s entry into Portugal. This step reflects more than expanded distribution. It signals alignment with a global operator that selectively partners with assets already positioned to meet evolving traveller expectations.
By connecting Masana to Hyatt’s global network, the asset gains earlier access to demand. It enters the traveller’s consideration set before the shortlist is fully defined, increasing the likelihood of being evaluated alongside a narrower group of alternatives.
At the same time, Masana’s positioning, combining location, design and flexibility, ensures that once it enters the decision set, it remains competitive throughout the evaluation process. The asset is not only visible, but clearly understood, which reduces friction during comparison.
In this context, the advantage is not only operational. It is structural. The asset competes earlier, where the decision begins to take shape, rather than relying on late-stage conversion.
Investment Is Moving Toward Earlier Control Points
These changes redefine where value is created in hospitality.
If performance is determined before booking, then investment strategies that focus only on operational improvements or pricing optimisation are inherently limited. The key is not only how an asset performs, but where it enters the decision process.
This shifts the focus toward earlier control points, including positioning, perception and alignment with how travellers form preferences.
At VIDA Capital, this is reflected in a strategy centred on identifying assets where repositioning can change not just the product, but its role within the decision journey. The objective is to ensure that assets are not competing for residual demand, but are part of the initial consideration set.
In this environment, performance is no longer a byproduct of demand. It is the result of how precisely that demand is captured.
If you would like to explore our current hospitality investments, you can contact our team at rita@vida-cap.com or schedule a call here.
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