Gift Cards - to redeem or not redeem

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" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
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I based my comments on the assumption that Joe was referring to B&B.com GCs which probably doesn't represent too many "big resorts".
I think bnbfinder's commission is about 10% lower if memory serves. We don't get very many of either, so the impact isn't very large.
Most of the B&Bs who both accept them and participate in their online reservation system are small B&Bs like most of ours building their businesses. Thats the only reason we do it and we wouldn't if we were even slightly more secure in our projected annual bookings than we currently are.
We all know the business of bigger volume enabling bigger properties to slash rates, offer rooms on priceline, hotwire, etc.. so that goes without saying.
But nobody said what size property they'd go redeem one at.
Thanks for that clarification.
As far as somebody thrusting something on you, the program through B&B.com is voluntary just like you opening your front door, letting a stranger tour your house, eating up your time then dickering over the rate.
I'm not sure I see the distinction.
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It is voluntary but people think if you are listed on bandb you also take the GCs and do not believe you when you say I am sorry but we do not take them. Also they often do not tell you until checkout they are using them. Trust me, if I ever get in the position of a guest presenting me with a bandb GC, I will have a a kid getting a super getaway rather than take the hit in cash - unless it was the dead of winter and almost time for the honking loan payment to hit...... Nah. Kids win.
Edited for thought that came as I hit save: If I use the GC I not only lose on the commission but I also lose on taxes because it goes on my revenue stream as full charge and my B & O is based on gross revenue so a comp does not get the B & O hit.
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gillumhouse said:
It is voluntary but people think if you are listed on bandb you also take the GCs and do not believe you when you say I am sorry but we do not take them. Also they often do not tell you until checkout they are using them.
Edited for thought that came as I hit save: If I use the GC I not only lose on the commission but I also lose on taxes because it goes on my revenue stream as full charge and my B & O is based on gross revenue so a comp does not get the B & O hit.
Well, we must be extra lucky because we've NEVER had a single guest spring one on us or even get to the final stages of the reservation process without asking if we accpeted them. I just took a reservation today for one and it was the first question she asked.
I don't know how your accountant does your taxes, but ours is based on gross income received. If it was any other way, NOBODY would ever discount a room.
If your website and brochure say a room is $150 and you give a discount and only charge and receive $125 what kind of crazy taxing body expects you to pay taxes on the original $150?
We also list the commissions paid to any party that acts as a de facto travel agent as a "commission" which is a expense.
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If the ledger says I charged $100 - regardless of what the regular rate is - I pay B & O on $100. If I take a $100 GC to pay for a $100 room and $30 goes to commission, I still pay B & O tax on $100 because that is what the guest paid for the room. B & O is business & occupation tax and is a city or county, depending, tax in WV for the priviledge of doing business. I want services in my city so I pay it without grumbling because it says I HAD business (many in this city never thought we would) and the city has to pay for services somehow.
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gillumhouse said:
If the ledger says I charged $100 - regardless of what the regular rate is - I pay B & O on $100. If I take a $100 GC to pay for a $100 room and $30 goes to commission, I still pay B & O tax on $100 because that is what the guest paid for the room. B & O is business & occupation tax and is a city or county, depending, tax in WV for the priviledge of doing business. I want services in my city so I pay it without grumbling because it says I HAD business (many in this city never thought we would) and the city has to pay for services somehow.
I don't want to argue with you but if you look at your state and federal tax forms under expenses, you'll find a commissions slot to deduct those expenses.
Also, when the income from the card or gift certificate is deposited into your bank account, it only shows the net amount, which I'd have a hard time believing isn't the figure any business uses to calculate your gross revenue.
Your city and county probably charge a sales tax, license fees, property taxes, etc... but I'm thrilled to hear someone besides myself actually understand the connection between taxes and the government services they provide.
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When I say gross revenue I mean gross - before expenses which equals net revenue after expenses are deducted. I could have a negative earning year but would still have paid B & O every quarter.
We pay the State $30 every other year for a State license, the City $15 per year for a license, and collect 6% sales tax. Anyone in a County or municipality that has hotel tax collects an extra 3 to max of 6%.
I have been a Councilman, currently serve on several Committees, am the Tourist Info Center (officially), am now City Clerk, and I doubt if I have missed a total of 12 Council meetings since April 1995 so I know what my City deals with and what they do with very little.
Now as President of a Garden Club that received a LARGE bequest, I am in the process of getting the ladies to vote beautification projects all over the City. Have 2 done and a third in the works right now. Have at least 2 more to do before my term ends and they throw me out as President.
 
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
.
Bree said:
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC.
We had at least three guests show up with unannounced bandb.com gift certs/cards the first time we stopped taking them - rather than continue the confrontations that caused with guests who can't understand why you are listed on a site but don't take their cards, we re-upped. When they raised the commish to 20% we bowed out permanently. I now have a statement in my Webervations policies, on the website and in my confirmation that we don't take them. We have not had any show up this time around. We don't support any full-availability discounts that are more than 10% - the BOGO certs that we take have limited days and time of year uses and government rates have specific guidelines.
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That's an interesting 'line in the sand' - 10%. And a good reason- unlimited availability.
 
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
.
Bree said:
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC.
We had at least three guests show up with unannounced bandb.com gift certs/cards the first time we stopped taking them - rather than continue the confrontations that caused with guests who can't understand why you are listed on a site but don't take their cards, we re-upped. When they raised the commish to 20% we bowed out permanently. I now have a statement in my Webervations policies, on the website and in my confirmation that we don't take them. We have not had any show up this time around. We don't support any full-availability discounts that are more than 10% - the BOGO certs that we take have limited days and time of year uses and government rates have specific guidelines.
.
That's an interesting 'line in the sand' - 10%. And a good reason- unlimited availability.
.
In making the decision to not take the bandb.com gift cards, we looked at the redemption history. More of the cards were redeemed on days we would have been full without the cards - fall weekends, for example. The very few cards that were redeemed when we wouldn't have been full - spring weekdays, for example - did not cover the commission cost paid to bandb.com at the 20% level. So, no gift cards at 20%.
That doesn't even begin to discuss the 'gift card' mentality and our feeling that they were not desireable guests for our B&B. Beholders' eyes and all that, our experience was not positive.
 
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
.
Bree said:
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC.
We had at least three guests show up with unannounced bandb.com gift certs/cards the first time we stopped taking them - rather than continue the confrontations that caused with guests who can't understand why you are listed on a site but don't take their cards, we re-upped. When they raised the commish to 20% we bowed out permanently. I now have a statement in my Webervations policies, on the website and in my confirmation that we don't take them. We have not had any show up this time around. We don't support any full-availability discounts that are more than 10% - the BOGO certs that we take have limited days and time of year uses and government rates have specific guidelines.
.
That's an interesting 'line in the sand' - 10%. And a good reason- unlimited availability.
.
In making the decision to not take the bandb.com gift cards, we looked at the redemption history. More of the cards were redeemed on days we would have been full without the cards - fall weekends, for example. The very few cards that were redeemed when we wouldn't have been full - spring weekdays, for example - did not cover the commission cost paid to bandb.com at the 20% level. So, no gift cards at 20%.
That doesn't even begin to discuss the 'gift card' mentality and our feeling that they were not desireable guests for our B&B. Beholders' eyes and all that, our experience was not positive.
.
Our very best repeat guests (11 times in 6 years) were a bb.com gift certificate their first time. In fact, their daughters buy them one every year for Christmas, and every year they bring them here, usually on holiday or busy season weekends. They usually stay three or four nights, so I get full revenue most of the stay....and they stay more than once a year, so they have more than made up for it.
If I sell them a room for $100.00 per night, and they give me a $100.00 gift card...I get $80.00 total...I record it as $74.08 in room revenue + 8% taxes = $80.00. Would I rather get full revenue? Yeah, that extra $25 would be nice for that night, but my butt doesn't pucker up about it.
While bb.com sends me alot of business, I don't get a ton of those cards. IF I was getting a bunch of them...might be a different story.
 
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
.
Bree said:
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC.
We had at least three guests show up with unannounced bandb.com gift certs/cards the first time we stopped taking them - rather than continue the confrontations that caused with guests who can't understand why you are listed on a site but don't take their cards, we re-upped. When they raised the commish to 20% we bowed out permanently. I now have a statement in my Webervations policies, on the website and in my confirmation that we don't take them. We have not had any show up this time around. We don't support any full-availability discounts that are more than 10% - the BOGO certs that we take have limited days and time of year uses and government rates have specific guidelines.
.
That's an interesting 'line in the sand' - 10%. And a good reason- unlimited availability.
.
In making the decision to not take the bandb.com gift cards, we looked at the redemption history. More of the cards were redeemed on days we would have been full without the cards - fall weekends, for example. The very few cards that were redeemed when we wouldn't have been full - spring weekdays, for example - did not cover the commission cost paid to bandb.com at the 20% level. So, no gift cards at 20%.
That doesn't even begin to discuss the 'gift card' mentality and our feeling that they were not desireable guests for our B&B. Beholders' eyes and all that, our experience was not positive.
.
Our very best repeat guests (11 times in 6 years) were a bb.com gift certificate their first time. In fact, their daughters buy them one every year for Christmas, and every year they bring them here, usually on holiday or busy season weekends. They usually stay three or four nights, so I get full revenue most of the stay....and they stay more than once a year, so they have more than made up for it.
If I sell them a room for $100.00 per night, and they give me a $100.00 gift card...I get $80.00 total...I record it as $74.08 in room revenue + 8% taxes = $80.00. Would I rather get full revenue? Yeah, that extra $25 would be nice for that night, but my butt doesn't pucker up about it.
While bb.com sends me alot of business, I don't get a ton of those cards. IF I was getting a bunch of them...might be a different story.
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Little Blue said:
Our very best repeat guests (11 times in 6 years) were a bb.com gift certificate their first time. In fact, their daughters buy them one every year for Christmas, and every year they bring them here, usually on holiday or busy season weekends. They usually stay three or four nights, so I get full revenue most of the stay....and they stay more than once a year, so they have more than made up for it.
If I sell them a room for $100.00 per night, and they give me a $100.00 gift card...I get $80.00 total...I record it as $74.08 in room revenue + 8% taxes = $80.00. Would I rather get full revenue? Yeah, that extra $25 would be nice for that night, but my butt doesn't pucker up about it.
While bb.com sends me alot of business, I don't get a ton of those cards. IF I was getting a bunch of them...might be a different story.
You are the poster child B&B.com is trying to sell everyone on. The B&B that got a guest who came with a GC and then returned multiple times and stays multiple nights on their own dime. We finally have someone on here who has had that happen!
 
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
.
I based my comments on the assumption that Joe was referring to B&B.com GCs which probably doesn't represent too many "big resorts".
I think bnbfinder's commission is about 10% lower if memory serves. We don't get very many of either, so the impact isn't very large.
Most of the B&Bs who both accept them and participate in their online reservation system are small B&Bs like most of ours building their businesses. Thats the only reason we do it and we wouldn't if we were even slightly more secure in our projected annual bookings than we currently are.
We all know the business of bigger volume enabling bigger properties to slash rates, offer rooms on priceline, hotwire, etc.. so that goes without saying.
But nobody said what size property they'd go redeem one at.
Thanks for that clarification.
As far as somebody thrusting something on you, the program through B&B.com is voluntary just like you opening your front door, letting a stranger tour your house, eating up your time then dickering over the rate.
I'm not sure I see the distinction.
.
It is voluntary but people think if you are listed on bandb you also take the GCs and do not believe you when you say I am sorry but we do not take them. Also they often do not tell you until checkout they are using them. Trust me, if I ever get in the position of a guest presenting me with a bandb GC, I will have a a kid getting a super getaway rather than take the hit in cash - unless it was the dead of winter and almost time for the honking loan payment to hit...... Nah. Kids win.
Edited for thought that came as I hit save: If I use the GC I not only lose on the commission but I also lose on taxes because it goes on my revenue stream as full charge and my B & O is based on gross revenue so a comp does not get the B & O hit.
.
gillumhouse said:
It is voluntary but people think if you are listed on bandb you also take the GCs and do not believe you when you say I am sorry but we do not take them. Also they often do not tell you until checkout they are using them.
Edited for thought that came as I hit save: If I use the GC I not only lose on the commission but I also lose on taxes because it goes on my revenue stream as full charge and my B & O is based on gross revenue so a comp does not get the B & O hit.
Well, we must be extra lucky because we've NEVER had a single guest spring one on us or even get to the final stages of the reservation process without asking if we accpeted them. I just took a reservation today for one and it was the first question she asked.
I don't know how your accountant does your taxes, but ours is based on gross income received. If it was any other way, NOBODY would ever discount a room.
If your website and brochure say a room is $150 and you give a discount and only charge and receive $125 what kind of crazy taxing body expects you to pay taxes on the original $150?
We also list the commissions paid to any party that acts as a de facto travel agent as a "commission" which is a expense.
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Well, we must be extra lucky because we've NEVER had a single guest spring one on us or even get to the final stages of the reservation process without asking if we accpeted them. I just took a reservation today for one and it was the first question she asked.
Yes, you're very lucky! It's happened to us twice. It's very awkward when it happens and even though it's the guest's fault for not informing you, they've left with a bad experience. Mind you, these were guests who NEVER informed us they were expecting to use any kind of gift card/certificate and we had processed their reservation per our usual guidlines which is to not only get their credit card, but charge it for 1 night as their deposit. They didn't say a peep before or during their stay. We charge the balance at check out, and that's when they pulled out the banb.com card.
I have now added on webervations, our website policy page and every confirmation letter going out that we only accept gift certificate/vouchers issued by our B&B and our state association. That seems to have done the trick.
 
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?.
Tim_Toad_HLB said:
" YOUR THOUGHTS?"
Why would the gift card holder choose to stay at a non-participating B&B to begin with if intending to use the cards for payment?
Why would an innkeeper unsure about the transferability or fine print of the gift cards accept them in lieu of actual payment and run the risk of getting stiffed if they weren't transferable until redeemed?
Why would an innkeeper who is opposed to accepting them for I assume the distaste of having the commission deducted be more than willing to let some other colleague absorb that commission?
As with any discussion of discounting here, I always ask about and adhere to the concept that if you are willing to offer ANY guest a discount or reduction equal to any commission paid to a second party, what is the difference?
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC. (Which is how I found out I could not access the GC system to check the number to be sure it was valid when I had a screaming guest at my front desk.)
Now that I know I can check the GC's I would accept them, check them and then either use them myself or regift them to my kids.
My kids have used the GC's at big resorts, never a small B&B, which is what I would do if I chose to use one that showed up at my door. The philosophy there being that a big resort can absorb a $30 discount faster than a small 4 room B&B.
No one coming here gets a $30 discount (the average GC's total $100, even if they come in $25 increments). The flip side to the question about commissions is that I choose who gets a discount, I don't like having it thrust upon me. And guests will try to get a discount first and then 'mention' they will be paying with the GC once I've knocked the price down by the amount I am comfortable with. All the guest is trying to do is pay the least out of pocket, and who could blame them?
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Bree said:
GC holders do not always know which B&B's take the GC's no matter how many times the directory makes changes to make it abundantly clear that they MUST inform the B&B BEFORE arrival that they are using the GC.
We had at least three guests show up with unannounced bandb.com gift certs/cards the first time we stopped taking them - rather than continue the confrontations that caused with guests who can't understand why you are listed on a site but don't take their cards, we re-upped. When they raised the commish to 20% we bowed out permanently. I now have a statement in my Webervations policies, on the website and in my confirmation that we don't take them. We have not had any show up this time around. We don't support any full-availability discounts that are more than 10% - the BOGO certs that we take have limited days and time of year uses and government rates have specific guidelines.
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That's an interesting 'line in the sand' - 10%. And a good reason- unlimited availability.
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In making the decision to not take the bandb.com gift cards, we looked at the redemption history. More of the cards were redeemed on days we would have been full without the cards - fall weekends, for example. The very few cards that were redeemed when we wouldn't have been full - spring weekdays, for example - did not cover the commission cost paid to bandb.com at the 20% level. So, no gift cards at 20%.
That doesn't even begin to discuss the 'gift card' mentality and our feeling that they were not desireable guests for our B&B. Beholders' eyes and all that, our experience was not positive.
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Our very best repeat guests (11 times in 6 years) were a bb.com gift certificate their first time. In fact, their daughters buy them one every year for Christmas, and every year they bring them here, usually on holiday or busy season weekends. They usually stay three or four nights, so I get full revenue most of the stay....and they stay more than once a year, so they have more than made up for it.
If I sell them a room for $100.00 per night, and they give me a $100.00 gift card...I get $80.00 total...I record it as $74.08 in room revenue + 8% taxes = $80.00. Would I rather get full revenue? Yeah, that extra $25 would be nice for that night, but my butt doesn't pucker up about it.
While bb.com sends me alot of business, I don't get a ton of those cards. IF I was getting a bunch of them...might be a different story.
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Little Blue said:
Our very best repeat guests (11 times in 6 years) were a bb.com gift certificate their first time. In fact, their daughters buy them one every year for Christmas, and every year they bring them here, usually on holiday or busy season weekends. They usually stay three or four nights, so I get full revenue most of the stay....and they stay more than once a year, so they have more than made up for it.
If I sell them a room for $100.00 per night, and they give me a $100.00 gift card...I get $80.00 total...I record it as $74.08 in room revenue + 8% taxes = $80.00. Would I rather get full revenue? Yeah, that extra $25 would be nice for that night, but my butt doesn't pucker up about it.
While bb.com sends me alot of business, I don't get a ton of those cards. IF I was getting a bunch of them...might be a different story.
You are the poster child B&B.com is trying to sell everyone on. The B&B that got a guest who came with a GC and then returned multiple times and stays multiple nights on their own dime. We finally have someone on here who has had that happen!
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Yeah, I'm a poster child for something, all right!
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I totally give up.
You can search by state and CITY specific, not entire State for participating inns. It is so difficult, I can see why guest would PREFER a central database.
The number of inns WITHOUT RATES NEAR THEIR ROOM PICS, I had to put in the dates and then there were no pics of the rooms, so had no idea if the room had a shared bath or king bed or what! I have open about 5 windows to just find out the rates and room info on every inn. And let me tell you there are some really SUCKY websites out there.
If they have the info on the directory I am looking at it there and if it seems viable I go and find a crappy website. One website and I kid you not, said "If you can't reserve online, come back and hour later, we might be updating the website" UGH!
A handful of others DO NOT have online rez, so I have no way of telling if they have anything open and what the rates are.
I GIVE UP!!!
 
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