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Time For A Raise!

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Arks

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Scared! I've decided it's time to raise rates $5/night. I haven't raised rates in years because about half my business is business travelers and I'm afraid of running them off. (Though I guess I could offer them the old rate if they threaten to leave, and keep the raise for everybody else.)

Lately, partly due to blocking a day before and after each reservation, I'm 95% booked every week, and turn down one or two requests/day. Supply and demand. I demand more money after all these years!

What's sad, though, is that another $5/night will only bring in another $6000 or so/year. I'll be happy to take it, but in the big picture, that's not a lot. Of course, over the years it will start to add up.

I really need to get firm about raising rates more regularly, at least every 2 years. We'll see.
 

Anon Inn

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Guilty. I think I only raised rates once in the first 10 years. Then up by $15. It didn't stop the regulars. As of a few years ago, its up $5 about every year. This year almost no regulars due to so many event cancellations, but the new people who have taken their places are just glad to have a pretty much 'normal' place to stay. An anniversary couple is coming next month. The periodic price rises haven't stopped them. If you are getting a lot of new people, you could probably do $10 with no blowback.
 

Morticia

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Our first big jump was breaking $100/night. That was scary. Once that didn’t hurt our numbers, I decided to raise rates as the economy did better. If it was a bad year (2008-2009) we instituted discounting and free nights. That went away when things got better. Then I did increases in $4 or $6 amounts that gave us prices ending in ‘9’ or ‘5.’ We haven’t raised off season rates in probably 7-8 years, but in season rates go up regularly. Take advantage of the Rezkey management tools you mentioned to raise prices when you’re close to filling up. You can do an across the board increase, but also a daily increase as well.

For our repeat guests we have a discount plan. You could let your regular biz people know that rates are going up, but they get $x off because of loyalty. Or, you could find out they will pay without a peep because it’s still a good deal.
 

gillumhouse

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Breaking $100 was scary for me also but no more than the usual were saying that is too much (the no-tell is down the road, enjoy). I think I am raising rates in January also. I have found people are just happy to find a welcoming place - AND most are leaving tips which used to be unheard of.
 

gillumhouse

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Tuesday, as I cleared the breakfast table, I found a 20 under his mug. Definitely more tips.
 

seashanty

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Oh my! Raise your rates by $10 across the board ... be sure the rates end with an odd number. I think you do this already.

Then do what the big places do ... if reservations start to slide, offer ‘specials’. I used to be scared of raising prices, too. You’re worth it.
 

GoodScout

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We raise our rates by $10 a year. Some years, like this one, we have to retreat from it, but we do try.
When you hit the $100 and $200 barriers, it's hard to climb over those, and it may take several years to get past it. Use packages or other value-adds to try and justify the bump over those thresholds.
 

MRA

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Oh my! Raise your rates by $10 across the board ... be sure the rates end with an odd number. I think you do this already.



Why odd number? Are you talking about the $19.95 versus $20 factor?
 

JimBoone

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Why odd number? Are you talking about the $19.95 versus $20 factor?
I take a slightly different approach and attempt a number that comes out to an even dollar amount after adding taxes.
 

KenW

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Your worth it! If you have 5 star reviews, go the extra mile and especially if you are offering a service or location that your competitors don't.
 

Roxanne Trees

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I went up $15 this year due to the outrageous increase in the cost of food. This has been the busiest four months I have ever had so I guess crossing the $200 threshold was not an issue.
My last guests checked out this morning. I am done until May. Whew!
 

seashanty

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from a marketing course I took. The perception that $19.99 is much less than $20. It's a psychological thing. Works well for me ...
 
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