No 1-nighters. Financial Report

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swirt's picture
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05/17/2008

I mentioned earlier this summer that we had put a no one-night stay policy in effect.  I said I'd give the financial breakdown of that decision when the summer had run its course.  So here are the numbers.  Keep in mind, I am by no means recommending this to everyone.  I'm just describing the financial ramifications for us.

Background:  SInce DW is a teacher we are only open midweek for the months of July and August each year.  All other times we are only open on weekends and always had a 2 night minimum for weekends for our three guest rooms.  So these numbers only represent the months of July and August  for 2007 (1-nighters allowed) and 2008 (no one nighters allowed)

 

  2007 (1-nighters permitted) 2008 (NO 1-nighters)
Total Number of room nights for JULY and AUG
(not including our vacation time or days blocked off)
117 roomnights 102 roomnights
Unfilled single night openings 4 roomnights -> 3.4% 13 roomnights -> 13%
Filled single night openings 13 roomnights -> 11%  
 Total single night openings  17 roomnights -> 14.5%  13 roomnights -> 13%
 Lost income from unfilled nights (gross)   $640   $2080
 Difference between lost income 2007 and 2008   $1440
 What was really lost (net) [taking into account opperating costs for the nights $360 and taxes ~$360]   ~$720 actually lost

 So there was a bit of decline in the number of single night openings because there was no option for them (14.5% down to 13%), but the difference (1.5%) is pretty small.   By the time I figure in all the stuff that results in the bottom line...the cost for us of going to no-one nighters for July and August was $720 but it kept us from having to potentially flip 13 rooms.  For me and DW it was absolutely worth it 

Your mileage may vary. 

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06/02/2008

I have posted on my web site 2 night minimum for football weekends.  Last 2 years I did a 1 night then would get calls for 2 or 3 and couldn't take them.

This weekend have booked and cancelled and lots of calls.  But finally took a 1 night booking for the original suite because we are almost at the weekend.  When I offer the suite that is open, it is $150 for 1 night or $100 a night for multi night (difference is the 1200 sq ft needing cleaning) I don't get any takers.  So guess it is going unused this weekend.

I am still glad I went to 2 night minimum for the game weekends.

JunieBJones (JBJ)'s picture
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05/22/2008

Or if you had HIRED HELP, estimate that COST into the bottom line for all the one night flips.  That would be dramatic!

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swirt's picture
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Right, the $720 lost might have gotten a lot closer to being a number in the black  ;)   Hired Help...that's a good one

Morticia's picture
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05/22/2008

Did you really mean that you are only open mid-week in the summer? No, I guess you mean that mid week is only open in the summer and no other time. Never mind.

This is an interesting breakdown because you really don't know if those rooms would have been filled THIS summer had you been open to taking them on. (Of course with ONE glaring, PITA exception. )

So, to have suffered (and you would have) for a possible net of $720 is definitely, IMO, NOT worth it.

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swirt's picture
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I am reasonably asured of saying that we would have filled close to the same percentage of one nighters as we did in 2007.  We had enough calls/inquiries to fill them (I'm just not sure if all the inquiries were spread out or if some were for the same nights).  Thats why I subtracted the diffence between this year and last just to even that up a bit (it sort of accounts for the number of nights we didn't fill on average).  Admittedly the math is a little fuzzy, but not too bad.

And to clarify April - June and Sept - Nov we are weekends only.  July - Aug we are open weekends and mid-week.  So it is July and Aug where we even had the option to get one nighters.

Morticia's picture
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05/22/2008

swirt wrote:

I am reasonably asured of saying that we would have filled close to the same percentage of one nighters as we did in 2007.  We had enough calls/inquiries to fill them (I'm just not sure if all the inquiries were spread out or if some were for the same nights).  Thats why I subtracted the diffence between this year and last just to even that up a bit (it sort of accounts for the number of nights we didn't fill on average).  Admittedly the math is a little fuzzy, but not too bad.

And to clarify April - June and Sept - Nov we are weekends only.  July - Aug we are open weekends and mid-week.  So it is July and Aug where we even had the option to get one nighters.

Good point to mention the calls about the openings.

I used to let that get to me. Block a date and the calls start coming in until I realized that a LARGE number of callers never book. They are checking rates and dates and are not committed to going anywhere on any date. Even if I push them to close the deal, 'Would you like me to book that for you now while you're on the phone and the room is still open?' 'Oh, no, I need to talk with the rest of the group, I'll call back.'

swirt's picture
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See I would say it is the opposite in our experience, if they called and we had an opening for the time they are looking for, it is very likely they will take it. I would put that at around 80% (unless they were looking for a place that took dogs or kids).  The windowshoppers who are just looking for information are usually calling for next year or but have no specific date in mind.

Morticia's picture
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05/22/2008

swirt wrote:

See I would say it is the opposite in our experience, if they called and we had an opening for the time they are looking for, it is very likely they will take it. I would put that at around 80% (unless they were looking for a place that took dogs or kids).  The windowshoppers who are just looking for information are usually calling for next year or but have no specific date in mind.

Maybe I'm cranky on the phone, too. Maybe it's getting thru to the callers. I do have to say, tho, that when I am at my most obnoxious, they book. When I'm sweet and helpful, they call 10 times and then book elsewhere. After a few hang-ups I tell hubs, 'You get the next call, they don't like me today.'

I can't tell you how many calls I get when I have an opening on a popular weekend (maybe just got a cancel) and I'll hear, 'I think we'll keep looking.' Click. I wish them well. Sometimes they call 2-3 times, thinking they got someplace different, so I know they ARE still looking.

The funny ones are the ones who say, after they book, 'Now which place are you?'

 

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