“When a Guest Starts Comparing You to Competitors: Don’t Compete — Reframe”
A guest says, “The place down the street has this cheaper” or “Why should I choose you over X?”Behavioral Economics Insight: Framing Effect, Confirmation Bias, Value Attribution, Decoy Effect
You’ve heard this one:
“The café next door gives a bigger portion for less.”
“We saw a hotel nearby with similar rooms but cheaper.”
And your staff awkwardly responds:
“Oh… yeah, but ours is… different.”
In that moment, the guest isn’t just being difficult — they’re giving you a golden opportunity to define what sets you apart. But if your staff reacts defensively or timidly, you’ve lost control of the narrative.
What’s really happening:
From a behavioral perspective, the guest is searching for confirmation that choosing your place is the right decision. Their brain is in comparison mode, which means:
- They’re feeling uncertain
- They want reassurance — not a price war
- And their first impression will now be shaped by what your staff says next
What to do instead:
Train your staff to reframe the conversation by shifting the comparison from price to value, emotion, or experience.
“They’re great if you’re in a rush. But we focus on slowing things down — our menu is built for people who want to really relax and enjoy every bite.”
“A lot of guests visit both — they come to us when they want something handmade and personal. That’s what we’re known for.” This approach disarms competition and reinforces your brand identity.
Why this works:
- Framing Effect – You control how the guest sees your offer (not just how much it costs).
- Confirmation Bias – Once you provide a positive angle, their brain starts looking for ways to believe it.
- Decoy Effect – Mentioning another, more expensive or impersonal option makes yours seem smart and comforting.
Staff Mistakes to Avoid:
❌ Never say “I don’t know” or “They’re cheaper because they use cheaper stuff” — it sounds defensive.
❌ Don’t bash the competitor — it breaks trust.
❌ Don’t panic — this is your moment to shine, not apologize.
How to train your team:
✅ Help them practice positive comparisons: how your ambiance, ingredients, or service feels different — not necessarily better, but aligned to a different need.
✅ Teach simple reframing phrases like:
– “That’s great for fast and simple. We focus on warmth and connection.”
– “They’re awesome for groups — we’re more intimate and relaxed.”
✅ Let them use “guest story nudges”:
“Actually, we had someone just last night who said they were so glad they picked us — they wanted something quieter and more personal.”
Bonus Behavioral Strategy:
Have staff casually reference non-price comparisons like:
- Portion size (not bigger — “balanced”)
- Service speed (not faster — “calmer” or “less rushed”)
- Experience (“We build moments, not just meals.”)
These subtle cues anchor your value in emotion, not logic.
BOTTOM LINE:
When guests compare, they’re not looking for discounts — they’re looking for direction.
Your staff’s job is not to fight the comparison, but to reframe it in a way that says:
“If you’re looking for something a little more… you, you’ve found it.”
Case Study 1: The Moxy Hotels (Marriott, Global)
Situation: Moxy targets younger travelers who often compare them to budget chains like Ibis or Motel One — which usually offer lower prices.
What they did:
Moxy didn’t try to match prices. Instead, they reframed their brand identity as “playful, social, and design-forward.”
- Staff greet guests with a free welcome drink at check-in.
- The lobby is intentionally lively and Instagrammable.
- Staff are trained to say things like:
“We’re for people who want more vibe than silence — we’re not your grandma’s hotel.”
Behavioral Tools Used:
- Framing Effect – It’s not about price, it’s about personality.
- Self-Categorization – Guests feel like they’re choosing based on lifestyle, not budget.
- Confirmation Bias – Once they see themselves as “fun travelers,” they justify the choice.
Result:
Higher guest satisfaction and repeat bookings, despite being $20–$30 more per night than basic competitors.
Case Study 2: Sweetgreen (US)
Situation: Sweetgreen offers healthy salads at $10–$15, while many fast food chains nearby sell full meals for $5–$8. Customers often say, “That’s pricey for a salad.”
What they did:
Instead of defending prices, Sweetgreen trained staff to highlight ingredient sourcing and wellness value:
- “Everything here is organic, and we work directly with farmers — that’s what you’re tasting.”
- Menus say “Food that Feels Good” — reframing health as an emotional outcome.
- Stores display pictures of their farm partners on walls.
Behavioral Tools Used:
- Value Attribution – Linking price to health, ethics, and sourcing.
- Emotional Anchoring – It’s not lunch, it’s self-care.
- Contrast Framing – Against fast food, this feels intentional, not indulgent.
Result:
Sweetgreen grew into a $1B+ brand by appealing to educated, wellness-conscious guests who gladly pay more — because they feel good doing it.
Case Study 3: Gili Lankanfushi (Luxury Resort, Maldives)
Situation: Guests often compare Gili’s prices (~$2,000+ per night) with nearby luxury resorts offering similar amenities at $500–$1,000.
What they did:
Staff are trained to preemptively frame the experience as transformational, not just luxurious:
“We’re not about gold bathtubs — we’re about pure silence, private space, and reconnecting with nature in barefoot luxury.”
They guide guests to imagine themselves in emotional states (peaceful, tech-free, intimate) — which no competitor can deliver the same way.
Behavioral Tools Used:
- Contrast Effect – Competitors feel sterile or overbuilt by comparison.
- Peak-End Rule – The emotional “high” becomes the anchor.
- Narrative Framing – Guests are told: “This is a place to reset — not just stay.”
Result:
Gili commands industry-leading rates — and is regularly ranked among the world’s top luxury resorts without offering discounts.
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