Thank you for the good advice. Around here a lot of hotels double their rate for football games, making a $150 a night room $300, with a two-night minimum. That's a $600 weekend (yes, I know you can add too. I just wanted to emphasize the point). While we adhere to the two-night minimum, we don't fiddle with our room rate of only $100 + 8.75 motel/hotel tax. We also provide so many extras - covered porches, fire pit, gazebo, grills, pavilion, pond, trails, golf cart, and scavenger hunt, to name most of them - that I feel we should be charging more. Like the B Diva said, $100 to $110 would be nothing. Can't raise this year since the money-making weekends are already booked but we can start getting the guests used to the idea. Most of them are so much richer than us that they won't bat an eye!!.
Even if your money making weekends are already booked (by the way, if they're already booked, you're not charging enough), you still should raise the rates this year! Just do it, don't even think about it. The money adds up over the rest of this year and you'll rent those rooms whether you raise the rate or not.Mac said:Thank you for the good advice. Around here a lot of hotels double their rate for football games, making a $150 a night room $300, with a two-night minimum. That's a $600 weekend (yes, I know you can add too. I just wanted to emphasize the point). While we adhere to the two-night minimum, we don't fiddle with our room rate of only $100 + 8.75 motel/hotel tax. We also provide so many extras - covered porches, fire pit, gazebo, grills, pavilion, pond, trails, golf cart, and scavenger hunt, to name most of them - that I feel we should be charging more. Like the B Diva said, $100 to $110 would be nothing. Can't raise this year since the money-making weekends are already booked but we can start getting the guests used to the idea. Most of them are so much richer than us that they won't bat an eye!!
If you FEEL you should be charging more, you SHOULD be charging more. In all cases, The failure to charge what you are worth is the number one way innkeepers are leaving money on table.Thank you for the good advice. Around here a lot of hotels double their rate for football games, making a $150 a night room $300, with a two-night minimum. That's a $600 weekend (yes, I know you can add too. I just wanted to emphasize the point). While we adhere to the two-night minimum, we don't fiddle with our room rate of only $100 + 8.75 motel/hotel tax. We also provide so many extras - covered porches, fire pit, gazebo, grills, pavilion, pond, trails, golf cart, and scavenger hunt, to name most of them - that I feel we should be charging more. Like the B Diva said, $100 to $110 would be nothing. Can't raise this year since the money-making weekends are already booked but we can start getting the guests used to the idea. Most of them are so much richer than us that they won't bat an eye!!.
I sure have thought about itHas anyone used the Yield Management feature on ResKey?.
I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.Has anyone used the Yield Management feature on ResKey?.
I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.Has anyone used the Yield Management feature on ResKey?.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
.
This is experience talking. You get to know this by doing it yourself or watching your competition. You should be watching your competition right now. You should understand the differences in what you each offer and how that translates into bookings and pricing.undersea said:I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.Has anyone used the Yield Management feature on ResKey?.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
.This is experience talking. You get to know this by doing it yourself or watching your competition. You should be watching your competition right now. You should understand the differences in what you each offer and how that translates into bookings and pricing.undersea said:I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
If you want to buy software to do that you are then relying on someone else's interpretation of your business.
Just reading here you should see that one side does not fit all. We are less than an hour away from some of the other members here and our businesses are completely different.
.
Good point. We looked at the other inns in town and weighed location, amenities, views etc.Morticia said:This is experience talking. You get to know this by doing it yourself or watching your competition. You should be watching your competition right now. You should understand the differences in what you each offer and how that translates into bookings and pricing.undersea said:I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
If you want to buy software to do that you are then relying on someone else's interpretation of your business.
Just reading here you should see that one side does not fit all. We are less than an hour away from some of the other members here and our businesses are completely different.
Correct. The startups supposedly were doing future yield management - determining how to change prices based on your % occupancy going out days, weeks, months. Raising or lowering your prices to get the best return as time passes. Supposedly they based it on nationwide trends, but it was also supposed to key off your own occupancy. Saw them in WSJ or similar. Again they are beta, so it was theory. Obviously one's own place and the local competition can be very different from what goes on nation/worldwide.I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.Has anyone used the Yield Management feature on ResKey?.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
.This is experience talking. You get to know this by doing it yourself or watching your competition. You should be watching your competition right now. You should understand the differences in what you each offer and how that translates into bookings and pricing.undersea said:I would be very interested in something like that. I saw 1-2 startups that supposedly are trying to help hotel/B&Bs determine pricing, but they seem to be in beta.
For example, pricing compared to competitors, seasons, your current booked %, what % of rooms should be booked at 1 week, 1 month, and X months into future based on certain pricing...
If you want to buy software to do that you are then relying on someone else's interpretation of your business.
Just reading here you should see that one side does not fit all. We are less than an hour away from some of the other members here and our businesses are completely different.
.
Apparently there is a different between ending in 109.99 and 109.95 and even 109.94. People somehow don't like the ending in .94 but perceive the .95 as higher quality than .99 which is the general ending.My big challenge is butting up against psychological barrier price points ($99, $199, $249, $299, etc.) When we get to the point where we need an extra $10 a night for these rooms, we see a big dropoff in bookings when we price rooms at $209 compared to $199.
I even experimented with getting rid of the "x99" gimmick by pricing rooms at something like $127 and $207, but there didn't seem to be a great benefit.
I use the ResNexus Yield Management tool, with mixed results. I like creating rules that boost my rates $10 or $20 as I get to full occupancy, or dropping them by the same amount as we get within 3 days of booking with no bites.
Only problem is when I set a 3-day drop, I sometimes have guests who see:
Sunday: $149, Monday: $149, Tuesday: $169.
Guests always want to know what's so special about Tuesdays..
That is why my best room now has a rate of 149.75 - it is under 150My big challenge is butting up against psychological barrier price points ($99, $199, $249, $299, etc.) When we get to the point where we need an extra $10 a night for these rooms, we see a big dropoff in bookings when we price rooms at $209 compared to $199.
I even experimented with getting rid of the "x99" gimmick by pricing rooms at something like $127 and $207, but there didn't seem to be a great benefit.
I use the ResNexus Yield Management tool, with mixed results. I like creating rules that boost my rates $10 or $20 as I get to full occupancy, or dropping them by the same amount as we get within 3 days of booking with no bites.
Only problem is when I set a 3-day drop, I sometimes have guests who see:
Sunday: $149, Monday: $149, Tuesday: $169.
Guests always want to know what's so special about Tuesdays..
Enter your email address to join:
Enter your email address to join:
Register today and take advantage of membership benefits.
Enter your email address to join: