Quantcast

The walk in dilemma

INNspiring.com | Innkeeper Forum & Innkeeping Resources

Help Support INNspiring.com | Innkeeper Forum & Innkeeping Resources:

Morticia

Administrator
Staff member
Administrator
Moderator
Joined
May 22, 2008
Messages
17,351
Reaction score
224
So, I see a car outside and someone walking toward the house. I go to answer the door. Someone looking for a room for tonight. It's a hit or miss weekend here. College graduation but the college is not that close. I can offer a discount if I want. It's obvious the person does not want to pay my rate. I figure, they're leaving anyway, so what would they have wanted to pay?
$60. Oh boy. I won't go that low. So he asks about the next town. I explain that we're getting into peak season here and not many places are that low even in the winter. Then I remember a place 2 miles away that might just be close to that. I write it down for him (non-English speaker) and send him on his way.
Hoping it's not like that all summer...
 

Tim_Toad_HLB

Well-known member
Joined
May 8, 2009
Messages
585
Reaction score
0
Boy am I glad we're off the beaten path a little.
We get virtually no walk in traffic, but I can tell you that the trend has been for many more than past years who are calling, emailing, etc.. to at least ask about a deal or some kind of discount since last fall.
Getting creative seems to be working for us. Our philosophy and preference has always been to spend less out of pocket on advertising methods that we can't fully quantify the effectiveness of and offer more personalized, one on one discounts that don't really cost you anything until someone takes advantage of it.
We've been relaxing our minumum night stays even if its close to a holiday weekend, talking more about our sliding scale extended stay discount with folks to try and get more nights out of them, highlighting the fact that our local sales/lodging tax here is 5% lower than at properties located within city limits, etc. We also have a nice "drive green" special that ironically more people are taking advantage of now with gas at $2.20 a gallon than last summer when it was $4 a gallon.
 

happykeeper

Well-known member
Joined
Dec 11, 2008
Messages
1,758
Reaction score
0
Boy am I glad we're off the beaten path a little.
We get virtually no walk in traffic, but I can tell you that the trend has been for many more than past years who are calling, emailing, etc.. to at least ask about a deal or some kind of discount since last fall.
Getting creative seems to be working for us. Our philosophy and preference has always been to spend less out of pocket on advertising methods that we can't fully quantify the effectiveness of and offer more personalized, one on one discounts that don't really cost you anything until someone takes advantage of it.
We've been relaxing our minumum night stays even if its close to a holiday weekend, talking more about our sliding scale extended stay discount with folks to try and get more nights out of them, highlighting the fact that our local sales/lodging tax here is 5% lower than at properties located within city limits, etc. We also have a nice "drive green" special that ironically more people are taking advantage of now with gas at $2.20 a gallon than last summer when it was $4 a gallon..
Some thoughts about this...
We have not cared for the walk-in price point at any point in our first 4 years. Even when our rates were much lower, it was always too high for a walk-in. That is how a lot of people are taught to behave by the hotels. Walk-in at 7 pm and get the super bargain rate! SOOO.. we know there are potential walk-ins out there that are not price pointers but rather experiential travelers. Sure they booked the so and so resort for a week, but if they find something that they think would enhance the trip.. they just do it. After a variety of chats with people in the general biz, we are beginning a "High Coffee" event in the mid-day as many visitors are driving by. Instead of pasively letting walk-ins come to us, we are setting up an opportunity for them to discover us. Amonst those may be some gems.
On the sliding scale...
Although we are in a very small minority as far as we can figure... the sliding scale has worked for us. It doesn't work well for the industry software, but we have worked around that. What has happened is two-fold
1) Our single night guests rarely flinch at the $30 or $50 premium they are paying and often are big coffee buyers. At $249, they see us as being at the low to middle end of their price point. They are likely to return for longer stays in the future because they visit Hawaii more often, so they figure they can take advantage of the discount next time.
2) Our 2 night ($219) guests and our 3 or more nights ($199) guests see us as being at the middle to high end of their budget, but see the discount as a way to stay at a nicer place and still get a break. Since they are including the cost in their decision, they extend their stay to enjoy added savings. They get here and feel as if they actually did get a good deal and tend to be very happy with the amenities and extras.
We get a premium to manage the cost of shorter stays and we get, on average, longer stays.
What we do not do is discount. It is our opinion that this behavior is a hotel behavior and it leads to dissatisfaction, inappropriate negotiation, and long term damage to our rates. Those guests will not return to stay with us at a higher price- because they now know we drop our price when asked. In this way, last minute discounts have a hidden cost that will hurt us later.
 

scrambled_eggs

Well-known member
Joined
Aug 7, 2008
Messages
612
Reaction score
0
I get a lot of walk ins just because of the location. Lately, most want a discount. One lady the other day just about fell over when I told her the rate for the room. Our rooms start at $200. Another guy wanted to pay me $80 cash to stay here. I told him I wouldn't do that. He got mad and gunned the engine on his sports car as he left and squeeled his tires. I gave this one couple a discount of $125 per night for two nights. I regretted it. They were really cheap people. They took up too much of my time with talking and questions that lasted hours. They brought all their own food with them for dinner and ended up using my dishes.
 

Samster

Well-known member
Joined
May 30, 2008
Messages
6,475
Reaction score
14
Location
South Carolina
Boy am I glad we're off the beaten path a little.
We get virtually no walk in traffic, but I can tell you that the trend has been for many more than past years who are calling, emailing, etc.. to at least ask about a deal or some kind of discount since last fall.
Getting creative seems to be working for us. Our philosophy and preference has always been to spend less out of pocket on advertising methods that we can't fully quantify the effectiveness of and offer more personalized, one on one discounts that don't really cost you anything until someone takes advantage of it.
We've been relaxing our minumum night stays even if its close to a holiday weekend, talking more about our sliding scale extended stay discount with folks to try and get more nights out of them, highlighting the fact that our local sales/lodging tax here is 5% lower than at properties located within city limits, etc. We also have a nice "drive green" special that ironically more people are taking advantage of now with gas at $2.20 a gallon than last summer when it was $4 a gallon..
Some thoughts about this...
We have not cared for the walk-in price point at any point in our first 4 years. Even when our rates were much lower, it was always too high for a walk-in. That is how a lot of people are taught to behave by the hotels. Walk-in at 7 pm and get the super bargain rate! SOOO.. we know there are potential walk-ins out there that are not price pointers but rather experiential travelers. Sure they booked the so and so resort for a week, but if they find something that they think would enhance the trip.. they just do it. After a variety of chats with people in the general biz, we are beginning a "High Coffee" event in the mid-day as many visitors are driving by. Instead of pasively letting walk-ins come to us, we are setting up an opportunity for them to discover us. Amonst those may be some gems.
On the sliding scale...
Although we are in a very small minority as far as we can figure... the sliding scale has worked for us. It doesn't work well for the industry software, but we have worked around that. What has happened is two-fold
1) Our single night guests rarely flinch at the $30 or $50 premium they are paying and often are big coffee buyers. At $249, they see us as being at the low to middle end of their price point. They are likely to return for longer stays in the future because they visit Hawaii more often, so they figure they can take advantage of the discount next time.
2) Our 2 night ($219) guests and our 3 or more nights ($199) guests see us as being at the middle to high end of their budget, but see the discount as a way to stay at a nicer place and still get a break. Since they are including the cost in their decision, they extend their stay to enjoy added savings. They get here and feel as if they actually did get a good deal and tend to be very happy with the amenities and extras.
We get a premium to manage the cost of shorter stays and we get, on average, longer stays.
What we do not do is discount. It is our opinion that this behavior is a hotel behavior and it leads to dissatisfaction, inappropriate negotiation, and long term damage to our rates. Those guests will not return to stay with us at a higher price- because they now know we drop our price when asked. In this way, last minute discounts have a hidden cost that will hurt us later.
.
Hmmm...how do you put the sliding scale out there? Is it just part of your rates on your website? One of the other inns here has the philosophy of very high rates ($200 for a regular room to $370 for a cottage per night) on their website and then they do deep discounts. This rack rate hasn't really included an abundance of extras either. But, the perception is that you're getting this great room for a super price. Truth is that I think our rooms are generally nicer in amenities and attention to detail and we serve a great breakfast. I don't have as much inventory to play with so I can't discount that deep. I have the online discount, a military discount, a university discount and then try to run some kind of special. We usually don't have that many one night stays either. I'm trying to get my head around drumming up more business this Summer when we usually would be dead here BUT there is a place opening that should be a big draw for the area.
I think walk-ins should be charged MORE! haha....
 

SweetiePie

Well-known member
Joined
Feb 22, 2009
Messages
614
Reaction score
0
You can blame the media for this trend. They are urging consumers to "haggle" for everything.
 

happykeeper

Well-known member
Joined
Dec 11, 2008
Messages
1,758
Reaction score
0
Boy am I glad we're off the beaten path a little.
We get virtually no walk in traffic, but I can tell you that the trend has been for many more than past years who are calling, emailing, etc.. to at least ask about a deal or some kind of discount since last fall.
Getting creative seems to be working for us. Our philosophy and preference has always been to spend less out of pocket on advertising methods that we can't fully quantify the effectiveness of and offer more personalized, one on one discounts that don't really cost you anything until someone takes advantage of it.
We've been relaxing our minumum night stays even if its close to a holiday weekend, talking more about our sliding scale extended stay discount with folks to try and get more nights out of them, highlighting the fact that our local sales/lodging tax here is 5% lower than at properties located within city limits, etc. We also have a nice "drive green" special that ironically more people are taking advantage of now with gas at $2.20 a gallon than last summer when it was $4 a gallon..
Some thoughts about this...
We have not cared for the walk-in price point at any point in our first 4 years. Even when our rates were much lower, it was always too high for a walk-in. That is how a lot of people are taught to behave by the hotels. Walk-in at 7 pm and get the super bargain rate! SOOO.. we know there are potential walk-ins out there that are not price pointers but rather experiential travelers. Sure they booked the so and so resort for a week, but if they find something that they think would enhance the trip.. they just do it. After a variety of chats with people in the general biz, we are beginning a "High Coffee" event in the mid-day as many visitors are driving by. Instead of pasively letting walk-ins come to us, we are setting up an opportunity for them to discover us. Amonst those may be some gems.
On the sliding scale...
Although we are in a very small minority as far as we can figure... the sliding scale has worked for us. It doesn't work well for the industry software, but we have worked around that. What has happened is two-fold
1) Our single night guests rarely flinch at the $30 or $50 premium they are paying and often are big coffee buyers. At $249, they see us as being at the low to middle end of their price point. They are likely to return for longer stays in the future because they visit Hawaii more often, so they figure they can take advantage of the discount next time.
2) Our 2 night ($219) guests and our 3 or more nights ($199) guests see us as being at the middle to high end of their budget, but see the discount as a way to stay at a nicer place and still get a break. Since they are including the cost in their decision, they extend their stay to enjoy added savings. They get here and feel as if they actually did get a good deal and tend to be very happy with the amenities and extras.
We get a premium to manage the cost of shorter stays and we get, on average, longer stays.
What we do not do is discount. It is our opinion that this behavior is a hotel behavior and it leads to dissatisfaction, inappropriate negotiation, and long term damage to our rates. Those guests will not return to stay with us at a higher price- because they now know we drop our price when asked. In this way, last minute discounts have a hidden cost that will hurt us later.
.
Hmmm...how do you put the sliding scale out there? Is it just part of your rates on your website? One of the other inns here has the philosophy of very high rates ($200 for a regular room to $370 for a cottage per night) on their website and then they do deep discounts. This rack rate hasn't really included an abundance of extras either. But, the perception is that you're getting this great room for a super price. Truth is that I think our rooms are generally nicer in amenities and attention to detail and we serve a great breakfast. I don't have as much inventory to play with so I can't discount that deep. I have the online discount, a military discount, a university discount and then try to run some kind of special. We usually don't have that many one night stays either. I'm trying to get my head around drumming up more business this Summer when we usually would be dead here BUT there is a place opening that should be a big draw for the area.
I think walk-ins should be charged MORE! haha....
.
When we switched, we just changed the rates on our website and created 4 firm rates in total. One is our package price rate of $189 which is a three night stay that is part of a larger 9 night package we run with our most excellent partner inns on other parts of the island and the other three I mentioned. We chose the scale because it doesn't come across as a penalty for shorter stays but a discount for longer ones. We definitely think walk-ins should be charged your highest applicable rate!

Althought the artificial discount thing might work for some, it doesn't appeal to us. I would feel scammed to discover that the very same room I paid $370 for is being discounted heavily to some squeaky wheel. I may not say anything but I would never return. If they never charge the higher rate- that's a reverse bait and switch. You tell someone it's a ten dollar fish when it's really a four dollar fish, and you sell it to them for five. Unfortunately, it still smells like a four dollar fish.
 

Don Draper

Well-known member
Joined
Aug 10, 2008
Messages
2,863
Reaction score
0
The dreaded "Catch-22"...if you don't offer the walk-in a discount you feel like you were true to your product, but then they might walk out the door and then you feel like you let yourself down.
For me personally, I feel we keep our rates the lowest we can and still manage the business. I tell guests this as well. I always feel AWFUL when I offer a discount...I just feel like I am cheapening myself. Plus I just hate "dinging" the people who actually took the time to research our place, choose it over many others, and booked in advance. I don't feel the walk-ins should be at an advantage for NOT doing any of this.
We have a trend here that I've noticed where people see our place and assume the prices will be very high (based on location and the house itself)...many are pleasantly surprised to hear our rates.
Bottom line...you've got to go with your gut, know your market, and know who your potential walk-ins are going to be.
I wouldn't expect even the nastiest hotel to be as cheap as $60/night...Bree, I don't think you would've wanted those folks in your house at all.
 

swirt

Forum founder. Former Owner.
Joined
May 17, 2008
Messages
3,210
Reaction score
0
You can blame the media for this trend. They are urging consumers to "haggle" for everything..
SweetiePie said:
You can blame the media for this trend. They are urging consumers to "haggle" for everything.
I think you are right SweetiePie. It seems to be a constant/continual theme on the morning news-like shows (Today, Morning, Early...).
 

Copperhead

Well-known member
Joined
Jun 24, 2008
Messages
5,969
Reaction score
0
Our rates are about right for the area and after being TOO low for several years in the beginning, we have gradually increased our way to what they are now. I wish we could go a little higher, but I know the market better now. We do not discount for 1 night stays. Not to say we never did but have realized that it just is too much trouble. Until recently, we never had walk-ins as we are 'off the beaten path', but with today's technology we are now in the spotlight. (well at least a flashlight). Usually we get calls from the road asking for availability and/or rates instead of just showing up unannounced.
I can not see having a RACK rate but never charging it. If that rate is out on the website but they really do not charge that amount, they are clearly loosing business from the start.
For us keeping our rates at an amount that is near or at the top of the market, and then discount for multi night stays 10% for 2 - 4 nights, 15% for 5 or more nights, except for holidays and event periods, works well. We offer Gov/military/Corp. rates Sun-Thrus. for 1 person current gov. per diem here is $96, we do get quite a bit of business travelers and of these, most become repeats or great referrals to others. I even get some that return with their spouse on vacation.
In order to provide discounts you must have that figured into to your business plan and your rate scale so you make per month what you want to. Weither you call them discounts or not, reducing your rate is just that, I just call em like I see em and in today's mind set, most like hearing that word!
We are also very slow in the summer months and are getting ready to do a summer package using our 10th anniversary as a method market to our past guests. We may also do some regional publicity. Sure hope this draws some in as my books are very empty right now.
 

Copperhead

Well-known member
Joined
Jun 24, 2008
Messages
5,969
Reaction score
0
You can blame the media for this trend. They are urging consumers to "haggle" for everything..
SweetiePie said:
You can blame the media for this trend. They are urging consumers to "haggle" for everything.
I think you are right SweetiePie. It seems to be a constant/continual theme on the morning news-like shows (Today, Morning, Early...).
.
swirt said:
SweetiePie said:
You can blame the media for this trend. They are urging consumers to "haggle" for everything.
I think you are right SweetiePie. It seems to be a constant/continual theme on the morning news-like shows (Today, Morning, Early...).
It seems to be everywhere now. Yahoo travel, AOL travel etc. all are highlighting this in their articles. Writers are saying that companies may not have a discount for you but you WILL not get a discount at all if you do not ask.
 

EmptyNest

Well-known member
Joined
May 22, 2008
Messages
8,741
Reaction score
1
Oh Bree..you know...at your place...this is just the beginning.

After learning our lesson early on the first year in business, we never took walk ins after that. It just never works in your favor. And I especially wouldn't give them a discount. Of course I realize you are in a different situation than we were, but I still would not discount.
 

happykeeper

Well-known member
Joined
Dec 11, 2008
Messages
1,758
Reaction score
0
Our rates are about right for the area and after being TOO low for several years in the beginning, we have gradually increased our way to what they are now. I wish we could go a little higher, but I know the market better now. We do not discount for 1 night stays. Not to say we never did but have realized that it just is too much trouble. Until recently, we never had walk-ins as we are 'off the beaten path', but with today's technology we are now in the spotlight. (well at least a flashlight). Usually we get calls from the road asking for availability and/or rates instead of just showing up unannounced.
I can not see having a RACK rate but never charging it. If that rate is out on the website but they really do not charge that amount, they are clearly loosing business from the start.
For us keeping our rates at an amount that is near or at the top of the market, and then discount for multi night stays 10% for 2 - 4 nights, 15% for 5 or more nights, except for holidays and event periods, works well. We offer Gov/military/Corp. rates Sun-Thrus. for 1 person current gov. per diem here is $96, we do get quite a bit of business travelers and of these, most become repeats or great referrals to others. I even get some that return with their spouse on vacation.
In order to provide discounts you must have that figured into to your business plan and your rate scale so you make per month what you want to. Weither you call them discounts or not, reducing your rate is just that, I just call em like I see em and in today's mind set, most like hearing that word!
We are also very slow in the summer months and are getting ready to do a summer package using our 10th anniversary as a method market to our past guests. We may also do some regional publicity. Sure hope this draws some in as my books are very empty right now..
Copperhead said:
In order to provide discounts you must have that figured into to your business plan and your rate scale so you make per month what you want to. Weither you call them discounts or not, reducing your rate is just that, I just call em like I see em and in today's mind set, most like hearing that word!
I really agreed with what you are saying. I do think that the discount that is built into your rates like you mention is very different from on the spot discounts to get people to stay.
I like the business rates for single travelers. We just don't get much of that.
 

Morticia

Administrator
Staff member
Administrator
Moderator
Joined
May 22, 2008
Messages
17,351
Reaction score
224
Generally, the discount shoppers I see walking in are not happy with $10 off.They want half off. (Not all, some are happy to 'score' the $10, it's a game to them.) And that is because they assume that my rates are like a hotel's rack rate, super inflated. My rack rate has minimal give in it. We do show a range of rates, with the higher end being a rate I might charge on a very busy weekend. No one sees that rate on the website before they call. The only rate they see is the low end rate and they all want to know why they can't have the room for that rate. Even tho the higher end rate is $60 more than what they are paying (depending on when they call) they all want to know why I'm charging them $10 more than my website says. My website has the low to high range. No one thinks the room will be the hight rate, only the low rate, or lower.
They have all been trained that 'rack rate' = 'sucker rate'.
And a lot of them are using the terms they hear in the media and saying things like, 'Isn't it better to make $100 than $0 if I walk?' And this is where the business person gets the money and the non business person gets to keep their pride. But which one pays the bills? But I don't think we can play by the same rules as hotels when we are such small businesses. Yeah, $100 is more than $0, but at what price do I sell my soul? And if I start taking whatever the guest will pay, how much sooner do I burn out?
 

EmptyNest

Well-known member
Joined
May 22, 2008
Messages
8,741
Reaction score
1
Generally, the discount shoppers I see walking in are not happy with $10 off.They want half off. (Not all, some are happy to 'score' the $10, it's a game to them.) And that is because they assume that my rates are like a hotel's rack rate, super inflated. My rack rate has minimal give in it. We do show a range of rates, with the higher end being a rate I might charge on a very busy weekend. No one sees that rate on the website before they call. The only rate they see is the low end rate and they all want to know why they can't have the room for that rate. Even tho the higher end rate is $60 more than what they are paying (depending on when they call) they all want to know why I'm charging them $10 more than my website says. My website has the low to high range. No one thinks the room will be the hight rate, only the low rate, or lower.
They have all been trained that 'rack rate' = 'sucker rate'.
And a lot of them are using the terms they hear in the media and saying things like, 'Isn't it better to make $100 than $0 if I walk?' And this is where the business person gets the money and the non business person gets to keep their pride. But which one pays the bills? But I don't think we can play by the same rules as hotels when we are such small businesses. Yeah, $100 is more than $0, but at what price do I sell my soul? And if I start taking whatever the guest will pay, how much sooner do I burn out?.
"Yeah, $100 is more than $0, but at what price do I sell my soul? And if I start taking whatever the guest will pay, how much sooner do I burn out?"
See there were times when having $0 was just fine with me. It was not worth the grief taking what they offered when I knew they would be a problem. Not your typical B & B guest who plans ahead:-(
I would have rather been empty and enjoyed an evening to myself. YOu have to go with your gut on these kinds of things
 

happykeeper

Well-known member
Joined
Dec 11, 2008
Messages
1,758
Reaction score
0
Generally, the discount shoppers I see walking in are not happy with $10 off.They want half off. (Not all, some are happy to 'score' the $10, it's a game to them.) And that is because they assume that my rates are like a hotel's rack rate, super inflated. My rack rate has minimal give in it. We do show a range of rates, with the higher end being a rate I might charge on a very busy weekend. No one sees that rate on the website before they call. The only rate they see is the low end rate and they all want to know why they can't have the room for that rate. Even tho the higher end rate is $60 more than what they are paying (depending on when they call) they all want to know why I'm charging them $10 more than my website says. My website has the low to high range. No one thinks the room will be the hight rate, only the low rate, or lower.
They have all been trained that 'rack rate' = 'sucker rate'.
And a lot of them are using the terms they hear in the media and saying things like, 'Isn't it better to make $100 than $0 if I walk?' And this is where the business person gets the money and the non business person gets to keep their pride. But which one pays the bills? But I don't think we can play by the same rules as hotels when we are such small businesses. Yeah, $100 is more than $0, but at what price do I sell my soul? And if I start taking whatever the guest will pay, how much sooner do I burn out?.
First, I feel for your situation, but when I read what you are going through, I just want to shout. You appear to caught in purgatory (?)
Freddie's Stop and Flop is just down the road - they have rooms for $30 bucks if you're willing to do the dishes! Thanks for stopping. I would love to stay and chat, but I have to get back our perfect customers.
 

EmptyNest

Well-known member
Joined
May 22, 2008
Messages
8,741
Reaction score
1
Generally, the discount shoppers I see walking in are not happy with $10 off.They want half off. (Not all, some are happy to 'score' the $10, it's a game to them.) And that is because they assume that my rates are like a hotel's rack rate, super inflated. My rack rate has minimal give in it. We do show a range of rates, with the higher end being a rate I might charge on a very busy weekend. No one sees that rate on the website before they call. The only rate they see is the low end rate and they all want to know why they can't have the room for that rate. Even tho the higher end rate is $60 more than what they are paying (depending on when they call) they all want to know why I'm charging them $10 more than my website says. My website has the low to high range. No one thinks the room will be the hight rate, only the low rate, or lower.
They have all been trained that 'rack rate' = 'sucker rate'.
And a lot of them are using the terms they hear in the media and saying things like, 'Isn't it better to make $100 than $0 if I walk?' And this is where the business person gets the money and the non business person gets to keep their pride. But which one pays the bills? But I don't think we can play by the same rules as hotels when we are such small businesses. Yeah, $100 is more than $0, but at what price do I sell my soul? And if I start taking whatever the guest will pay, how much sooner do I burn out?.
First, I feel for your situation, but when I read what you are going through, I just want to shout. You appear to caught in purgatory (?)
Freddie's Stop and Flop is just down the road - they have rooms for $30 bucks if you're willing to do the dishes! Thanks for stopping. I would love to stay and chat, but I have to get back our perfect customers.
.
Oh just wait to you hear some of Bree's stories as the season progresses..you will be amazed.

 

DaisyMae

Well-known member
Joined
Sep 3, 2008
Messages
308
Reaction score
0
there are inns in my area that are happy to sell a walk in a room at the $60.00 they are requesting. they are looking at it the same way, it's better to have $60. than $0. But the way we look at it is, by the time i pay for the food, heat/air cond, water electricity, my time or housekeeper's time, then what profit did i make? Many of us innkeepers are not really making any sort of "profit" to begin with. there is a point where it is better to have the $0 and no hassle than to actually lose $$ and have a hassle. this is entirely my opinion and i'm sure there are those that disagree but...
it's not always walk ins sometimes they are phone callers too but they see like a lot of my & DH's friends do. What!? It costs my $200.00 to sleep in a bed for a night!? they don't see all of the oether things that price pays for. Heck, even my own parents in law think we should be charging $75.00 per night any time of year.
 

Morticia

Administrator
Staff member
Administrator
Moderator
Joined
May 22, 2008
Messages
17,351
Reaction score
224
Generally, the discount shoppers I see walking in are not happy with $10 off.They want half off. (Not all, some are happy to 'score' the $10, it's a game to them.) And that is because they assume that my rates are like a hotel's rack rate, super inflated. My rack rate has minimal give in it. We do show a range of rates, with the higher end being a rate I might charge on a very busy weekend. No one sees that rate on the website before they call. The only rate they see is the low end rate and they all want to know why they can't have the room for that rate. Even tho the higher end rate is $60 more than what they are paying (depending on when they call) they all want to know why I'm charging them $10 more than my website says. My website has the low to high range. No one thinks the room will be the hight rate, only the low rate, or lower.
They have all been trained that 'rack rate' = 'sucker rate'.
And a lot of them are using the terms they hear in the media and saying things like, 'Isn't it better to make $100 than $0 if I walk?' And this is where the business person gets the money and the non business person gets to keep their pride. But which one pays the bills? But I don't think we can play by the same rules as hotels when we are such small businesses. Yeah, $100 is more than $0, but at what price do I sell my soul? And if I start taking whatever the guest will pay, how much sooner do I burn out?.
First, I feel for your situation, but when I read what you are going through, I just want to shout. You appear to caught in purgatory (?)
Freddie's Stop and Flop is just down the road - they have rooms for $30 bucks if you're willing to do the dishes! Thanks for stopping. I would love to stay and chat, but I have to get back our perfect customers.
.
knkbnb said:
First, I feel for your situation, but when I read what you are going through, I just want to shout. You appear to caught in purgatory (?)
Freddie's Stop and Flop is just down the road - they have rooms for $30 bucks if you're willing to do the dishes! Thanks for stopping. I would love to stay and chat, but I have to get back our perfect customers.
Unless someone is distinctly rude, I try to find them somewhere that fits. Like the couple yesterday, I sent them to a place that charges $75 including a continental brekkie. I HAVE stood and chatted with walk ins who are not staying. Someday they may have the money.
 

Morticia

Administrator
Staff member
Administrator
Moderator
Joined
May 22, 2008
Messages
17,351
Reaction score
224
there are inns in my area that are happy to sell a walk in a room at the $60.00 they are requesting. they are looking at it the same way, it's better to have $60. than $0. But the way we look at it is, by the time i pay for the food, heat/air cond, water electricity, my time or housekeeper's time, then what profit did i make? Many of us innkeepers are not really making any sort of "profit" to begin with. there is a point where it is better to have the $0 and no hassle than to actually lose $$ and have a hassle. this is entirely my opinion and i'm sure there are those that disagree but...
it's not always walk ins sometimes they are phone callers too but they see like a lot of my & DH's friends do. What!? It costs my $200.00 to sleep in a bed for a night!? they don't see all of the oether things that price pays for. Heck, even my own parents in law think we should be charging $75.00 per night any time of year..
Heck, even I won't pay my rates when I go somewhere! And I DO know what's behind the price!
 
Top