Pricing

6 years in (Inn?) and we are still adjusting pricing. We started with 6 different prices, then went to three, economy, standard and delux. We are now thinking of going back to 6 different prices.
each room is different and we are well aware which ones are favored and which ones being compliant (bathroom down the hall, I’m talking to You!).
How do you price? Bed size, view, kitchenette/no kitchenette?, room square footage?

I went by bed size to start. Larger bed, bigger price. But, we don't have any views like you do. Friends of ours had a king room with a bay view that they charged, and got, $100 more/night than a king without the bay view. Even their smallest room with a bay view was an extra $50 over a larger room without the view.
However, what I would do is charge more for the rooms that book more, for whatever reason. More money, less work. The other rooms can be lower, but still money makers and they may become more popular.
BTW, our plague room is running about 80% occ because it is the absolute cheapest room in downtown.

I agree, let the market dictate your prices. We have a pair of 2 bedroom suites, almost identical, but one shows much better in photos and thus has twice the occupancy of the other. So it's $10 more per night, despite being exactly the same.
Raise the prices on your most popular rooms, and considering making your "dog "room your low-cost entry-level room. I have one bedroom with its dedicated bathroom across the hall. I use it to keep my prices within range of my lesser-quality competitors, and then try to upset those who book to a room with an on-suite bath. Needless to say, the dog room is also the one I push on OTAs, since most of their customers are all price-focused anyway.

I startedwith $5 less than the (then) B & B in the next town because I had shared bath. I raised prices every few years. The biggest room had a queen so it was $10 more than the other 2 with full-size.
Then I created the ensuite and did a big jump with that room and a little jump with the other 2. Queen in one of the shared - more $. Then I got a king in the big room and moved the queen to replace the last Full. More $$.Every time I improve the experience of the roo,. there is a slight incress. I have absolutely NO VIEW otherthan the beautiful hills and trees that show above the Frie Dept and the back of the businesses on US Rt 19.

I have three basic rooms. Queen shared bath, King shared bath, Queen ensuite. The Queen shared are the smallest rooms, one is larger the other has a private balcony. So I have three prices. X, X+20, X+40 or so. I do move up and down from time to time. Between Labour Day and Thanksgiving (ours), I add 10 to the ensuite that is on the lower floor for no other reason other than it's the room that attracts the people who complain... so I figure get paid a few extra bucks or have them stay elsewhere.

Our 18th year here and I still grapple with rates. If you figure out pricing let me know!
We run 95+% occupancy during peak, may and oct. But only 20 to 25% off season, winter
My current scheme
All rooms have private bath, include breakfast and have individually controlled heat and A/C but do have vineyard or mountain views and second floor has better views.
Mid-season
Vineyard View Queen $149
2nd Floor Vineyard View Queen $159
2nd floor Mountain View Queen $169
Main Floor King Suite (mtn & vineyard view) $179
Second floor King Suite (mtn & vineyard view) $189
Cottage $199
Then I have reskey apply seasonal adjustments
Off season -$40
Low-mid season -$20
Mid-season $0 change
Mid- High +$50
High +$100
Peak of Peak (May 15 to June 15 and Labor Day to Mid- November, & UVA parents weekend, concert events) +$200
The best is reskey handles it all for me seamlessly. BUT....Then I also adjust daily based on what the 3 local Marriotts, the Draftsman and the Omni have for their prices. On the rare chance they lower prices I lower by the same percent, if they increase then I increase by the same percent. For that I just coded a bot to go to the local hotel sites each night at midnight and in the morning I get a report of the prices in all local hotels I care about for the next 28 days. I also have it go to the two local holiday inns and check but not for prices, I just look for any weekends in the next two months that are sold out. Knowing that once the cheap hotels are sold out that the big guys are going to start pounding people, so I can go up but always stay just below my comp group average.
And this is why my husband and I would be certified as insane by any psychologist in a heartbeat.

TheBeachHouse said:

How do you price? Bed size, view, kitchenette/no kitchenette?, room square footage?

Click to expand...

We have used different pricing ideas over the years, currently price on the basis of small, medium or large for our 8 rooms.
2 rooms are physically smaller and have one queen bed
4 rooms are standard motel sized rooms with two queen beds
2 rooms are extra large, two queen beds and one twin bed, extra kitchenette area
View is pretty much the same from any room, different colors and decorations, but other than size and sleeping space all rooms offer the same quality and extras. Unless a guest requests to remain in a specific room we state that we reserve the option to move them to a different room of the same or larger size.
Prices are lower during the weekdays, higher weekends or holidays, roughly a $10 difference between sizes. We have at least two seasons and keep pretty much the same price year round (easier to remember). Pricing goal is to be above the less desirable spots and below the big guys in town.

Thanks all. Looks like a universal issue. Good info!

All our rooms have basically the same facilities, so I price by time of year, rather than by room type.
Oct - April £95
May - Sept £110 (Except 20th July - Aug £125).
However these are my starting prices and I will reduce as and when depending on how eager I am to fill rooms. I will also charge more on booking sites to help cover commission.