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TheBeachHouse

TheBeachHouse

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When we bought the place, we were one of four inns on this street which is outside of the tourist area by about a mile, but has ocean views. So we are not a drive by, but rather, you have to do some research to find us.

In other words, if you drive into our town, you will pass 6 or 8 inns. To find us, you have to look harder.
Next year, we will be the only inn on our road. We are hoping that makes us in demand from regulars at the other three, but it might make us outliers from the group in town.
As of now, we plan to raise rates as an exclusive place. Our road going from 20+ rooms to 6. But we are already one of the most expensive places. So that may not be the best way to go.
Thoughts from the business savvy?
 
We are in a busy touristy area and sit 1 mile outside of downtown. We consistently attract those looking to get out of the "busyness" and enjoy the views and the quiet. It sounds like you already have a built in audience of regulars from the three other properties so probably have some room to increase your rates. You're now even more exclusive than you were previously.
We market strongly based on location. Get lots of great pictures that show your views and emphasize being out of the hustle & bustle yet at the same time close enough to all they want to do, the very best of both worlds. We love our guests who choose us based on these preferences.
 
Donald Draper said:
We are in a busy touristy area and sit 1 mile outside of downtown. We consistently attract those looking to get out of the "busyness" and enjoy the views and the quiet. It sounds like you already have a built in audience of regulars from the three other properties so probably have some room to increase your rates. You're now even more exclusive than you were previously.
We market strongly based on location. Get lots of great pictures that show your views and emphasize being out of the hustle & bustle yet at the same time close enough to all they want to do, the very best of both worlds. We love our guests who choose us based on these preferences..
Click to expand...
We get so excited when we see our guests sitting in the yard with a glass of wine and a book. So I hear you on the 'get away' focus.
I would be very sad for the business but more so for the town, if the inns closed and gave way to big hotels. The cost of real estate is higher than the inns can really support. We can do it because I have a job in the city.
 
See if you can get those other 3 inns to suggest their guests call you.
 
Oh how boring it must sound but,
Create your unique experience and price it accordingly. Yes - add value and raise your rates.
In the words of Stuart Smalley "You're Good Enough, You're Smart Enough, and Doggone It, People Like You!:
 
I'm looking at it from another angle.... I would leave your rates as is for this year or so. If you are already more than the ones going out of business, their guests might go to the town inns if yours is so much more.. Keep your price the same to encourage them to come your way. Then after you have hooked them for your regulars, raise the price, and they won't blink an eye as they pay.
 
Thank you all for the input. I love the extra brainpower and ideas. That's what we are here for!
 
TheBeachHouse said:
Thank you all for the input. I love the extra brainpower and ideas. That's what we are here for!.
Click to expand...
OR IF the closing B & Bs will give you a guest list OR send our to their guests a we are closing but recommend Beachie when you return to the area. Beachie will give OUR guests a special discount/rate in 2016. That way you can raise your rates a bit to show you ARE the best (Greenbrier mentality) and still lure the nice guests of the other B & Bs.
 
gillumhouse said:
TheBeachHouse said:
Thank you all for the input. I love the extra brainpower and ideas. That's what we are here for!.
Click to expand...
OR IF the closing B & Bs will give you a guest list OR send our to their guests a we are closing but recommend Beachie when you return to the area. Beachie will give OUR guests a special discount/rate in 2016. That way you can raise your rates a bit to show you ARE the best (Greenbrier mentality) and still lure the nice guests of the other B & Bs.
.
Click to expand...
That would work.
 
You have something special and unique so don't be bashful about being the most expensive accommodation. As long as there is value in the your guest's minds you will get rave reviews. Market those ocean views for all they are worth! Provide an outstanding, healthy breakfast (which you already do). Do your best to meet their needs with warm hospitality and don't be bashful about having location, location, location! It may take a few years to build your list of regulars but once you do you will not have to market quite as hard. Word gets around!
 
Silverspoon said:
You have something special and unique so don't be bashful about being the most expensive accommodation. As long as there is value in the your guest's minds you will get rave reviews. Market those ocean views for all they are worth! Provide an outstanding, healthy breakfast (which you already do). Do your best to meet their needs with warm hospitality and don't be bashful about having location, location, location! It may take a few years to build your list of regulars but once you do you will not have to market quite as hard. Word gets around!.
Click to expand...
thumbs_up.gif

 
I have lots of hotels around me but I am still the highest price in the area. People looking for quality food and hospitality come here. I have built a great reputation - just as you are in the process of doing.
 
This is a good place to share this tidbit from Tuesday night's guests.
They called from the I-64 Welcome Center, just east of Huntington (almost 200 miles south and then west of me). He thought he has a family connection with the Shinns and had heard about the log house. They asked the man at the counter if he knew anything about the Shinn log house and admission to it. He immediately said, "Just call Kathleen." She told me this morning they were surprised when I answered Gillum House because that was going to be their next call. She told me his name so I will have to remember to thank him at Governor's Conference on Tourism.
A few years ago, a City employee was checking out of a hotel in Charleston and the desk clerk saw Shinnston and asked, "Do you know Kathleen?"
 
gillumhouse said:
TheBeachHouse said:
Thank you all for the input. I love the extra brainpower and ideas. That's what we are here for!.
Click to expand...
OR IF the closing B & Bs will give you a guest list OR send our to their guests a we are closing but recommend Beachie when you return to the area. Beachie will give OUR guests a special discount/rate in 2016. That way you can raise your rates a bit to show you ARE the best (Greenbrier mentality) and still lure the nice guests of the other B & Bs.
.
Click to expand...
gillumhouse said:
OR IF the closing B & Bs will give you a guest list OR send our to their guests a we are closing but recommend Beachie when you return to the area. Beachie will give OUR guests a special discount/rate in 2016. That way you can raise your rates a bit to show you ARE the best (Greenbrier mentality) and still lure the nice guests of the other B & Bs.
Click to expand...
awesome idea!
 
Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be.
 
Momma Smurf said:
Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..
Click to expand...
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
 
TheBeachHouse said:
Momma Smurf said:
Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..
Click to expand...
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.
Click to expand...
TheBeachHouse said:
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
Click to expand...
Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
 
Morticia said:
TheBeachHouse said:
Momma Smurf said:
Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..
Click to expand...
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.
Click to expand...
TheBeachHouse said:
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
Click to expand...
Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
.
Click to expand...
thumbs_up.gif
thumbs_up.gif

 
Morticia said:
TheBeachHouse said:
Momma Smurf said:
Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..
Click to expand...
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.
Click to expand...
TheBeachHouse said:
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
Click to expand...
Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
.
Click to expand...
One could try do some predictive modelling. If 100% occupancy at rate X produces a certain amount of revenue, would 80% occupancy at rate Y or 60% occupancy at rate Z produce more or less revenue? (might also want to consider difference in expenses at different levels of occupancy, as ultimately it is revenue minus expenses that matters). Of course you would have to guess (or do trials) as to what rates Y and Z would have to be in order to yield the 80% and 60% occupancy levels...
 
TheBeachHouse said:
Momma Smurf said:
Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..
Click to expand...
Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.
Click to expand...
With similar numbers, we implemented two rate increases over 6 months and it did not slow down business. We are planning a third rate increase for 2016. Do not fear the rate increase. Do the math and see how working smarter will look.
 

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