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Hillbilly

Hillbilly

Well-known member
Joined
Oct 22, 2011
Messages
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I have been bouncing ideas around in my head about our prices. We are in a busy location most of the year. We almost always book all weekends and the May - Jan are very busy. We turn a lot of people away on weekends. I know a lot of properties in our town are not busy. If we are turning a lot of people away should we raise our rates to cut down on that demand? Or maybe we are priced bellow what we should and we are getting more biz because of that?
 
If you are that busy, raise your rates. If business slows down you and can always revert to your old prices. Or you can raise them on the weekends and keep mid-week prices the same.
 
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices.
 
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
 
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices.
Click to expand...
I agree with Maddie. Do a bit of 'yield management.
 
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
 
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
 
Madeleine said:
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
.
Click to expand...
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
 
BananaE29 said:
Madeleine said:
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
.
Click to expand...
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
.
Click to expand...
BananaE29 said:
...I don't think Rez Key has the capability to change prices depending on occupancy.
Click to expand...
You'd have to set it up manually depending on occupancy. You can create a new Rate Plan whose rules assign it to only be active from a given start day to end day. During those dates, it takes precedent over your regular rate plan. You can set which rooms use the special rate plan.
OR, you can create a rate adjustment, with given start day and day, indicate who much it will mark up over the usual rate, and which rooms it applies to.
 
Arkansawyer said:
BananaE29 said:
Madeleine said:
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
.
Click to expand...
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
.
Click to expand...
BananaE29 said:
...I don't think Rez Key has the capability to change prices depending on occupancy.
Click to expand...
You'd have to set it up manually depending on occupancy. You can create a new Rate Plan whose rules assign it to only be active from a given start day to end day. During those dates, it takes precedent over your regular rate plan. You can set which rooms use the special rate plan.
OR, you can create a rate adjustment, with given start day and day, indicate who much it will mark up over the usual rate, and which rooms it applies to.
.
Click to expand...
Ah...yes, you are correct. Good thinking. Thanks!
 
BananaE29 said:
Madeleine said:
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
.
Click to expand...
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
.
Click to expand...
BananaE29 said:
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
Click to expand...
I have a manual 'yield management' button. It's all manual. My range on my site includes my raising the rates as does the caveat 'rates may be higher due to local events, please check the calendar for exact prices.'
Have you ever noticed that no matter what your range is, they guest always assumes they will be getting the lowest rate no matter when they call? So, even tho my rates are say, $100-$150, and I only charge $130 they ALL want to know why it's not $100! No one ever asks when I charge $150!!!
 
Madeleine said:
BananaE29 said:
Madeleine said:
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
.
Click to expand...
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
.
Click to expand...
BananaE29 said:
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
Click to expand...
I have a manual 'yield management' button. It's all manual. My range on my site includes my raising the rates as does the caveat 'rates may be higher due to local events, please check the calendar for exact prices.'
Have you ever noticed that no matter what your range is, they guest always assumes they will be getting the lowest rate no matter when they call? So, even tho my rates are say, $100-$150, and I only charge $130 they ALL want to know why it's not $100! No one ever asks when I charge $150!!!
.
Click to expand...
Oh yes...all the time! Why they think they will be getting the cheapest rate on a Saturday in high season is beyond me. I wanna say "Well, what should I charge for a Wednesday in January then?" Duh!
 
Lots of great advice. I might even advertise to book early as prices will go up as we get closer to arrival date. I do remember years ago looking at a Hotel in Florida. I checked for a date in Aug a few months before and the rate was $159 a night. I thought maybe I would wait until closer to time and the rate went up to $220 a night. Thats what I had to pay. I forgot about that. Im sure it was because of demand as well.
 
BananaE29 said:
Madeleine said:
BananaE29 said:
Madeleine said:
BananaE29 said:
Bob said:
Madeleine said:
How about this...keep the rates you think are 'right'. When you start filling up, ie- get halfway full, raise the remaining room rates and see what happens. I rarely have problems filling the remaining rooms at the higher prices..
Click to expand...
That's a great idea! Kinda test the waters.
.
Click to expand...
I like this idea also! I think I will incorporate it into my busier months. Hotels do this all the time, as do airlines. The less rooms or seats remaining, the higher the price. The closer the booking is to arrival date, the higher the price. Why shouldn't we do the same?
.
Click to expand...
It's odd. Yes, hotels do that. Hotels here were charging $325 last weekend because they were down to 2-3 rooms. Could I get $175 for a room? Not a chance. This is what every caller said, 'It's off season! Why are you charging so much?' I sent all of those callers to the hotels.
.
Click to expand...
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
.
Click to expand...
BananaE29 said:
The only difficulty with this is how to price it on your website or reservation program. My website gives a "range" of prices, and they can call or go to the reservation page to get specifics for their date preference. But if I raise the range on the website, I'm afraid that may put some people off. And I'm not sure, but I don't think Rez Key has the capability to change prices depending on occupancy.
Click to expand...
I have a manual 'yield management' button. It's all manual. My range on my site includes my raising the rates as does the caveat 'rates may be higher due to local events, please check the calendar for exact prices.'
Have you ever noticed that no matter what your range is, they guest always assumes they will be getting the lowest rate no matter when they call? So, even tho my rates are say, $100-$150, and I only charge $130 they ALL want to know why it's not $100! No one ever asks when I charge $150!!!
.
Click to expand...
Oh yes...all the time! Why they think they will be getting the cheapest rate on a Saturday in high season is beyond me. I wanna say "Well, what should I charge for a Wednesday in January then?" Duh!
.
Click to expand...
Best are the ones who see the lowest price for the smallest room in the off season and want that for the largest room in peak season. 'Well, it says on your website the rooms are $75.' Honey, you want that room? Come back in March.
 
Supply and demand.
It is a difficult question. Ask us again when I am there in December. Maybe I will have a first hand perspective. I have learned that we inns are so dang different, sometimes what one of us does makes no sense to another. I have officially NOT raised prices on peak weekends now. Which are only a few, but we are getting repeats and I feel like I should give them a return discount, and the water is all too muddled, so I just stopped, altogether.
 
I have been playing around with flexible prices for a few years now.
If you price higher in the last few weeks and manage to rent out all rooms, it may mean that you priced too low at the beginning. You may have sold several rooms too low & lost some extra income opportunity.
On my side, I first have a very detailed analysis of the occupation ratio and prices of the previous years (important to keep stats). Based on this, I have sliced up in different price sections for each of our 3 rooms, for 6 "seasons", week day/week-end, direct/indirect booking. For each section, based on history, I have set the ideal price that should allow to get the optimum profit. Then, every 2 weeks, I analyze how the coming month are filling up and decide to adjust these prices up or down if or as required. I often end up putting down prices for last minute booking of the remaining rooms (knowing that first ones went higher). Prices for a couple with breakfast range from 66 to 164€. The highest is the easiest to sell !
This method allows me to ensure I do not sell too low and helped me increase turnover.
I admit I do not fully understand why airlines/big hotels proceed differently. I suspect that the N° of seats/rooms may bring a different thinking. Starting with a lower price mean they can ensure their break-even line will be reached. Higher final prices are seen as a bonus.
What is your take ?
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not.
 
Joey Bloggs said:
Supply and demand.
It is a difficult question. Ask us again when I am there in December. Maybe I will have a first hand perspective. I have learned that we inns are so dang different, sometimes what one of us does makes no sense to another. I have officially NOT raised prices on peak weekends now. Which are only a few, but we are getting repeats and I feel like I should give them a return discount, and the water is all too muddled, so I just stopped, altogether..
Click to expand...
That sounds good JB. We are looking forward to all of you coming.
I just have a few rooms left for weekends between now and the end of the year. I raised them just to see what will happen. To early to tell yet. I made a suggestion on the reskey forum to John about an idea. I think it would be great if the system would give a discount that we could set for return guests. For the reason you just mentioned. I think if a guests makes another reservation within a year it woul be nice to have them on VIP status so to speak. Maybe te system could send out a reminder 30 days before that time limit ends. After a year, no discount. Might gain more repeat customers.
 
souslechene said:
I have been playing around with flexible prices for a few years now.
If you price higher in the last few weeks and manage to rent out all rooms, it may mean that you priced too low at the beginning. You may have sold several rooms too low & lost some extra income opportunity.
On my side, I first have a very detailed analysis of the occupation ratio and prices of the previous years (important to keep stats). Based on this, I have sliced up in different price sections for each of our 3 rooms, for 6 "seasons", week day/week-end, direct/indirect booking. For each section, based on history, I have set the ideal price that should allow to get the optimum profit. Then, every 2 weeks, I analyze how the coming month are filling up and decide to adjust these prices up or down if or as required. I often end up putting down prices for last minute booking of the remaining rooms (knowing that first ones went higher). Prices for a couple with breakfast range from 66 to 164€. The highest is the easiest to sell !
This method allows me to ensure I do not sell too low and helped me increase turnover.
I admit I do not fully understand why airlines/big hotels proceed differently. I suspect that the N° of seats/rooms may bring a different thinking. Starting with a lower price mean they can ensure their break-even line will be reached. Higher final prices are seen as a bonus.
What is your take ?
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not..
Click to expand...
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not.
Here in the States that would not work. People want to know price before they even consider looking at dates. If price is not in front of them, they move on. Some of course, fail to read and call about price even when it is there on the end of their nose, but then they are calling to ask price before they consider booking.
 
gillumhouse said:
souslechene said:
I have been playing around with flexible prices for a few years now.
If you price higher in the last few weeks and manage to rent out all rooms, it may mean that you priced too low at the beginning. You may have sold several rooms too low & lost some extra income opportunity.
On my side, I first have a very detailed analysis of the occupation ratio and prices of the previous years (important to keep stats). Based on this, I have sliced up in different price sections for each of our 3 rooms, for 6 "seasons", week day/week-end, direct/indirect booking. For each section, based on history, I have set the ideal price that should allow to get the optimum profit. Then, every 2 weeks, I analyze how the coming month are filling up and decide to adjust these prices up or down if or as required. I often end up putting down prices for last minute booking of the remaining rooms (knowing that first ones went higher). Prices for a couple with breakfast range from 66 to 164€. The highest is the easiest to sell !
This method allows me to ensure I do not sell too low and helped me increase turnover.
I admit I do not fully understand why airlines/big hotels proceed differently. I suspect that the N° of seats/rooms may bring a different thinking. Starting with a lower price mean they can ensure their break-even line will be reached. Higher final prices are seen as a bonus.
What is your take ?
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not..
Click to expand...
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not.
Here in the States that would not work. People want to know price before they even consider looking at dates. If price is not in front of them, they move on. Some of course, fail to read and call about price even when it is there on the end of their nose, but then they are calling to ask price before they consider booking.
.
Click to expand...
gillumhouse said:
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not.
Here in the States that would not work. People want to know price before they even consider looking at dates. If price is not in front of them, they move on.
Click to expand...
Yes, that describes me. When I visit any website, if I don't see the price of something right there, openly in black and ink (an old Lum and Abner expression), I move on. If a website says, "contact us for pricing," I think, the price must be so high they want to work on me, win me over, before they reveal it, and I don't like that.
 
Arkansawyer said:
gillumhouse said:
souslechene said:
I have been playing around with flexible prices for a few years now.
If you price higher in the last few weeks and manage to rent out all rooms, it may mean that you priced too low at the beginning. You may have sold several rooms too low & lost some extra income opportunity.
On my side, I first have a very detailed analysis of the occupation ratio and prices of the previous years (important to keep stats). Based on this, I have sliced up in different price sections for each of our 3 rooms, for 6 "seasons", week day/week-end, direct/indirect booking. For each section, based on history, I have set the ideal price that should allow to get the optimum profit. Then, every 2 weeks, I analyze how the coming month are filling up and decide to adjust these prices up or down if or as required. I often end up putting down prices for last minute booking of the remaining rooms (knowing that first ones went higher). Prices for a couple with breakfast range from 66 to 164€. The highest is the easiest to sell !
This method allows me to ensure I do not sell too low and helped me increase turnover.
I admit I do not fully understand why airlines/big hotels proceed differently. I suspect that the N° of seats/rooms may bring a different thinking. Starting with a lower price mean they can ensure their break-even line will be reached. Higher final prices are seen as a bonus.
What is your take ?
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not..
Click to expand...
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not.
Here in the States that would not work. People want to know price before they even consider looking at dates. If price is not in front of them, they move on. Some of course, fail to read and call about price even when it is there on the end of their nose, but then they are calling to ask price before they consider booking.
.
Click to expand...
gillumhouse said:
I do not show prices ranges on the website. Visitors need to enter the date to view the prices. This way, they do not know wether they paid a high price or not.
Here in the States that would not work. People want to know price before they even consider looking at dates. If price is not in front of them, they move on.
Click to expand...
Yes, that describes me. When I visit any website, if I don't see the price of something right there, openly in black and ink (an old Lum and Abner expression), I move on. If a website says, "contact us for pricing," I think, the price must be so high they want to work on me, win me over, before they reveal it, and I don't like that.
.
Click to expand...
see we don't have that problem - most people use OTA's so are used to putting in their dates and getting a list of properties and prices so its not an issue, they also understand prices can change by the day and even by the hour.
 

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