Me, neither.
=)
Kk.
Have you discounted your rates because of the business slump?
Submitted by nanhinchliff on Sun, 03/08/2009 - 8:17pm
I am an optimist and when things get rough, I usually get into my "creative solution" mode. And that's exactly what I did, after having zero bookings in January, 2009. It shook me a little, but not for long! It soon shot me into action.I used the time to update my website, send postcards to my repeat customers, create two blogs (one business oriented forum for Innkeepers & one documenting life in and around my bed and breakfast. These endeavors actually filled me with positive energy.
AT NO TIME did I discount my rates; in fact, they were due to be increased, so I went ahead and did it. Gradually business has started to flow again. And my new encounters with blogging and social media have started to pay off. I've made lots of friends on line and have even gotten some business out of it.
I renovated just prior to the recession so had to raise my rates. They were due anyway and no I haven't lowered them. It hasn't seemed to affect business negatively. It has to be worth my while and guests seem to feel that they are getting value for their money. I also don't do the buy one get one free deal some of the directories promote but I will do the buy three get one free midweek.
Sorry, but this section of the board is for articles...this needs to be put under a different forum topic. If we start just posting comments here then we lose track of things. Can you put this in the regular forum please.
Sorry, but this section of the board is for articles...this needs to be put under a different forum topic. If we start just posting comments here then we lose track of things. Can you put this in the regular forum please.
Hi Nan,
No articles don't end up in the regular forum section here. The confusion I think is that they end up on the home page where all new posts end up. Discussion around articles is fine, but I am looking for something that are more along the lines of informational articles. This seems more like a question with personal reflection, which belongs as a forum topic or poll, not an article. It is sometimes a fine line which is why this is being brought up.
Sorry, but this section of the board is for articles...this needs to be put under a different forum topic. If we start just posting comments here then we lose track of things. Can you put this in the regular forum please.
We aren't allowed to comment on an article?
Maybe I didn't state it correctly. Certainly you can commment on articles. What I meant was...it was posted under articles and to me...this did not appear to be an article..but a forum topic. That's all I meant.
Sorry, but this section of the board is for articles...this needs to be put under a different forum topic. If we start just posting comments here then we lose track of things. Can you put this in the regular forum please.
We aren't allowed to comment on an article?
I agree with catlady... we can comment on articles, but this one feels more like a forum. Part of the reason for that is the title, "Have you discounted your rates because of the business slump?" If you ask a bunch of outspoken, opinioned innkeepers that question, expect an answer. (Actually many answers!) In fact, I thought it was going to be a poll, not an article.
Articles are great. But if you ask a question in your title, or seem to be exploring what the industry is doing in general, make it a forum.... the responses form the content in that case.
=)
Kk.
After keeping our rates the same for five years, we raised them in July. It did not hurt our business at all during the foliage season but we heard a few grumblings from previous guests after that. So we decided to have seasonal rates. We went back to our previous rates from November to May, and raised them from May to October. We'll see how it goes. March has always been our slowest month of the year so we discount 20% for this month only. It hasn't really made a big difference. We are still really slow this month. We take advantage of this time and fix up things around the B&B that we can't get to during the rest of the year, like painting the interior rooms that need it, revamping our website, making new contacts, etc. I'd rather be busy with the B&B but this helps keep me busy.
After keeping our rates the same for five years, we raised them in July. It did not hurt our business at all during the foliage season but we heard a few grumblings from previous guests after that. So we decided to have seasonal rates.
Five years? And they grumbled? Even McDonald's has raised their prices in the past five years. Heck, some restaurants have a new menu every time I go in, and the reason is because their prices are up. Why should we be exempt?
=)
Kk.
The problem IMO was that you didn't raise your rates in 5 years. It's much better to raise them more often in small increments. That way, your repeats get used to small increases and it doesn't seem so bad to them. If a couple of times a year you increased your rate $5.00, no one seems to notice or at least care. Creep them up. At least that way you're keeping up with inflation.
We didn't raise them earlier because we are already higher than most B&B's and hotels in the area, but we offer a lot more than they do and our property is pretty unique. It was definitely time and you are right, we should have done it sooner, in smaller increments. Of course, now that it's slow (as it always is in March) I get a little panicky.
I can relate to what you're saying. We're the same way...because of what we offer we are the most expensive B&B and only 1 boutique hotel is more expensive (but they have an ocean view). By you either raising or creeping up your rates, it actually allows those other B&Bs room to raise theirs. Unfortunately, right now we have a local B&B who making it tougher for all of us. He's got his winter rates and then discounting 25% weekend and 50% weekday with a 2 night stay. What ends up happening is that people will call me and try to negotiate my price down...they want all my ammenities, but at a rate closer to the cheap guy. I refuse to cut my rates like that. I think it's bad for the who industry. By the way, most of the time they end up booking with me afterall. It's just frustrating though to have to justify my rates because some other innkeeper is charging $55 a night!
It was another B&B owner (across the state) who urged us to raise our rates for the very reasons you mentioned. We were too low for what we were offering. We booked more room nights in 2008 than in 2007 so that is a good sign. I definitely agree with you on B&B's that discount too much. For me the problem is with the local hotels. They are all inclusive with meals, swimming pools, massage packages, etc. for less than our rates. And another new hotel opened in January just 10 minutes from us. We do offer some specials with gift certificates to restaurants, skiing, spas, theater tickets, with a two night stay or longer but even with the discounts we are still higher than the hotels. But I feel we offer a lot more in terms of beautiful rooms and the setting and all the amenities we provide. I know B&B's attract a different clientele that most hotels but with the rate difference I wonder if we'll be less attractive. The difference between our lowest rate and theirs is around $20.00.
The difference between my lowest rate and a hotel's lowest rate (in town) is $60. However, in the summer, the difference between my highest rate and a hotel's lowest rate is $140. And yet I still get summer guests complaining about my prices. And they're calling here because they are hotel people and the hotels are full at that very high price!
Don't let it get to you...
I have always raised my rates a bit every couple years - small amounts as in $4 to 5 dollars, never more than $10 BUT repeat guests get last year's rates as a thank you for being repeat. Next increase they pay the new previous rate so they are always one rate increase behind the rest of the world.