Why is looking at competitors' prices not enough the effort?
You lose the big picture
In addition to overlooking important elements that your competitors may be ignoring (events, weather, destination trends, etc.), you don't know how much their occupancy, customer type, and other factors unknown to you impact their pricing.
You spend your time poorly
Obsessively watching what others are doing takes away a lot of precious hours that you could be spending on something else. In addition to the time wasted this way, you will spend just as much time calculating your prices accordingly.
You lose focus on your business
Basing your prices on those of others subjects you to their decisions and can drag you into a downward price war that may increase occupancy, but is likely to hurt your accommodation.
Are these prices really the best ones?
Who assures you that your competitors are choosing their prices based on thoughtful analytics? And who assures you that your prices, calculated from theirs, are really the best for you as well? The risk of lost revenue is very high.