bbinnsitters
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- Sep 1, 2009
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If you feel as if your area has too many hotels and your business is being affected...
What are your local hotels charging? Let's say $70/night - if you were to drop your prices to theirs to compete wouldn't it be better to rent 5 rooms at $70/night than no rooms at $130? I think that is why some owners are catering to business people - having mid-week business at a reduced rate is better than no business at all. Or if you have 5 rooms all at $125 - $175 try dropping one to $80 to see what happens. It used to be that the most expensive rooms rented first, I have found that not to be true anymore.
I realize that you still have to take into consideration your cost - so add $10 for breakfast costs? You'll still be better off renting at $90/nite than no nights at all. Perhaps you'll also have to adjust your "gourmet" breakfast so it is not so expensive for you to serve.
I may be getting into all sorts of trouble for even suggesting this, but desperate times call for desperate measures.
What are your local hotels charging? Let's say $70/night - if you were to drop your prices to theirs to compete wouldn't it be better to rent 5 rooms at $70/night than no rooms at $130? I think that is why some owners are catering to business people - having mid-week business at a reduced rate is better than no business at all. Or if you have 5 rooms all at $125 - $175 try dropping one to $80 to see what happens. It used to be that the most expensive rooms rented first, I have found that not to be true anymore.
I realize that you still have to take into consideration your cost - so add $10 for breakfast costs? You'll still be better off renting at $90/nite than no nights at all. Perhaps you'll also have to adjust your "gourmet" breakfast so it is not so expensive for you to serve.
I may be getting into all sorts of trouble for even suggesting this, but desperate times call for desperate measures.