The term "benchmarking" as it relates to the hotel industry refers to a line-by-line analysis of an operating statement, comparing metrics for hotels of similar size or profile

The term "benchmarking" as it relates to the hotel industry refers to comparing metrics for hotels of similar size or profile.

Explanation:

a) Benchmarking is a process wherein a company's products, services, business processes, or performance metrics are compared with a “best in class” competitor.  The purpose of benchmarking is to enable organizations to make improvements by adapting specific best practices.  A retail shop's metrics can be compared with the leading retail shop in your area.  Given the deep insight gathered from benchmarking, this retail shop can decide to alter its line of products, the way it competes in the marketplace, or to undertake some improvements in her business processes.

There are four types of benchmarking, including internal, competitor, functional, and generic.  Internal benchmarking is limited to internal processes.  Competitor benchmarking compares one company's processes, products, or services to another.  Functional benchmarking compares one function of an entity to another entity's.  While generic benchmarking compares unrelated companies' processes or functions.

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