Unexpected utility increases = rate change?

Advertise with us
Shop deals on ebay
shop deals on amazon
Bed & Breakfast / Short Term Rental Host Forum

Help Support Bed & Breakfast / Short Term Rental Host Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Madeleine

Madeleine

Well-known member
Joined
Sep 29, 2011
Messages
7,990
Reaction score
1
So, reading in the paper I see our utilities are going up between 30-50% Jan 1. Do I add a few $$$ onto the rates to cover this or suck it up?
This equates to an additional $100-$300/month depending on the month. I could make it back up with a $4 increase, but that just puts us at $0 gain for the bottom line.
 
Go up $5! There are probably other things going up a little, too. You need to cover more than just the utility increases.
 
Hydro is going up just went up here, too. I've increased package prices and add-ons but am waffling about room rate increases across the board. It'll put us over a psychological threshold plus most other accommodations drop their rates at this time of year. Gotta make money, though, or what's the point?
 
happyjacks said:
Hydro is going up just went up here, too. I've increased package prices and add-ons but am waffling about room rate increases across the board. It'll put us over a psychological threshold plus most other accommodations drop their rates at this time of year. Gotta make money, though, or what's the point?.
Click to expand...
happyjacks said:
Gotta make money, though, or what's the point?
Click to expand...
thumbs_up.gif

 
happyjacks said:
Hydro is going up just went up here, too. I've increased package prices and add-ons but am waffling about room rate increases across the board. It'll put us over a psychological threshold plus most other accommodations drop their rates at this time of year. Gotta make money, though, or what's the point?.
Click to expand...
Gotta do it eventually.
 
happyjacks said:
Hydro is going up just went up here, too. I've increased package prices and add-ons but am waffling about room rate increases across the board. It'll put us over a psychological threshold plus most other accommodations drop their rates at this time of year. Gotta make money, though, or what's the point?.
Click to expand...
Hmmm. Raising the packages might work. Kind of hides the increases a bit.
In re the $4 raise, it's the same psychological threshold thing.
 
put in the increase ... i'm wondering if the places around you will go up as well. all should ... then it's an across the board thing.
 
We increased our rates by $10 this past summer after not doing so for a long time. So far all the repeat guests have been fine with it.
 
Raising rates a few dollars every 2 or 3 years is the way to do it. Even if only $2. Little raises are not noticed. It is when you find you must raise by $20 to cover expenses that people notice and balk. $2 to $5 they understand things go up. They are paying more for everything at home too.
 
I sometimes play with how I do a raise, for example, raise the price but offer a discount. So let say the price was $100, raise the price to $110 and offer 10% off for early booking. So those who book early get the old price, but eventually the 10% off disappears. Or sometimes price including all taxes. So if the taxes are 15% and the old price was $100, the new price may be $120 tax in. The next move would be $110 plus tax, etc.
Or change the package deal, for example, to have different components and are no longer the same. Add in something or remove something and charge extra for it. (AKA the airlines and luggage.) So free parking goes to $10 parking but rates go down $5. Or now adding in afternoon tea as part of the $10 increase.
 
Jon Sable said:
I sometimes play with how I do a raise, for example, raise the price but offer a discount. So let say the price was $100, raise the price to $110 and offer 10% off for early booking. So those who book early get the old price, but eventually the 10% off disappears. Or sometimes price including all taxes. So if the taxes are 15% and the old price was $100, the new price may be $120 tax in. The next move would be $110 plus tax, etc.
Or change the package deal, for example, to have different components and are no longer the same. Add in something or remove something and charge extra for it. (AKA the airlines and luggage.) So free parking goes to $10 parking but rates go down $5. Or now adding in afternoon tea as part of the $10 increase..
Click to expand...
I'm thinking of a combo of things, like you said. Thanks.
I think my new rez software allows me to mark off discounted prices ala - $150 special deal $135.
 

Latest posts

Back
Top