Your 'insult' point?

[Suzie Q]

We rarely get requests for a discount. One gal wrote and said she was going to be in town and "Wanted the $80 rate." We have two rooms and that is the price point for the smaller room. If wishes were horses, beggers would ride.
I do not discount that much.
C

 

[aieechihuahua]

My insult point is as soon as they ask for a discount. I tersely explain that we have the best price in town for the amanities we offer. Sometimes they book anyway, because they have looked and know I speak the truth. If they are looking for a Senior, military, AAA or AARP discount, I say our rates are already priced at a discount so everyone can benifit, not just special groups. They get a whole lot more value at a B&B FGS!

 

[EmptyNest]

As PT mentioned on another thread "TRENDS." We shoot ideas off each other here - on this invaluable resource called Innspiring, and many of these ideas would not work in OUR location at OUR inn. But some times it is worth giving it a shot, as it MAY work at our location unbeknownst to us. If it is something not too painful to do.
Gotta go with the flow sometimes, the flow meaning the cash flow as the end result.
I remember my humble beginnings on this forum being told I am crazy to discount, crazy to not have two night min's on every weekend...but for this location right here, I have to do what works for me. I don't get icky guests because I offer an online discount. I was told I would get the motel mob. Contrary to that, I get really great guests - but then this is not a tourist 'destination' where people can be aggressive and do what they want and treat your place like a motel.
So it all comes out in the wash. If it is me, and i have bills to pay I take bookings, I don't get major sticker dickering however as I get virtually no walk ins here. Haven't had one for a year..

LIke someone said. PERCEPTION is everything. I was just reading this on a friend's blog...and makes me think now...people really don't have a clue what value they are getting at MOST B & B's! Please don't undercut yourselves

 

[Breakfast Diva]

Maybe we need a poll re how many here have a heavy walk in trade, or minimal or none at all? It seems there areonly a couple here who get them? Those are the ones who should be answering...but of course we all do, every time, we are compulsive, and it really doesn't help since we are apples and oranges..

Maybe we need a poll re how many here have a heavy walk in trade, or minimal or none at all? It seems there areonly a couple here who get them? Those are the ones who should be answering...but of course we all do, every time, we are compulsive, and it really doesn't help since we are apples and oranges.

Do you consider last minute calls to be the same as walk-ins? I don't get walk-ins really, but I do get a lot of calls for the same night. Typically, we'll quote our upper price, but then will go down only about $10 if we need to.

 

[JBloggs]

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

 

[MooseTrax]

my insult point was below $100 in summer (busy season) ... i don't think you ever went as low as $100, did you? sometimes i would get real upset, feeling like people did not value what i was offering. i did not want to even offer the $100 rate ... but then i'd see them walk across the road and take the $100 room including breakfast and i knew i could've used that money. we were really hurting. for the guest, it wasn't seeing value, it was simply paying the least they could.
it was helpful when my son reminded me relentlessly ... 'it's just business - don't take it personal' because it FELT so very, very personal. they are not trying to insult you, they are trying to get the most they can for the money and it's fashionable to ask for a 'better deal'. he is the one who would show up to repair something and i wouldn't be able to pay him and he'd say ... 'you have to give those $100 rooms so you can pay me' and i knew it was true. and if i couldn't pay him in a timely manner, it hurt him and it was unfair. NO other handyman would have come in at a moment's notice and fixed things for me and waited for the money.
your best defense is to try to separate your emotions from the situation. if $100 (or whatever the lowest price you can accept) is going to pay for the water heater repair or for your groceries, you take it as graciously as you can ... focus on what that is going to pay for. it's a head game i played with myself.
sometimes i would say, i can take $100 plus tax ($107) CASH for the room right now (eliminating the card costs) and i felt a little better because i could pay my son and then walk across the road and buy myself a piece of pizza or something. small pleasures..

No, we've never had rates under $100 in season. Off season we were $85. I might try that 'cash only' discount. Guests should be willing to cough up real cash if they want me to knock the rates down so low.

 

[MooseTrax]

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

.

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

The one person was looking for that sort of deal! 'We'll pay this much and we won't use these items.' And then he listed what they would not use in the room. I almost took him up on it. I was going to go remove $50 worth of amenities out of the room. Pillows, towels, soap, one roll of TP, all the tissues and maybe the comforters. Definitely the A/C. The better half was aghast when I mentioned that.

 

[user 26]

how would you regulate what someone didn't pay to use? not that i would EVER try it.
i can just imagine mr and mrs we won't use any amenities slipping into the supply cupboard or into the shared bath and getting 'just a few' odds and ends.
we had some guests who convinced my partner they should get a reduced rate because they wouldn't be eating breakfast and would hardly be around. well, guess what? it rained like crazy during their stay (not their fault or mine) but they spent lots of time in the library, drinking coffee, eating afternoon goodies that i provided, watching tv and videos, doing puzzles, using the board games and bringing lots and lots of books up to their room, making popcorn. took LONG hot showers and baths, used loads of towels ~ i believe they both colored their hair while staying with me ~ but that's another story. and, oops, they came to breakfast ~~ when challenged, they reminded ME that i said 'breakfast is complimentary'. (but i wasn't the one who agreed to the no breakfast price break) this was a first year open mistake that i never allowed to be repeated again.

 

[happykeeper]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.

 

[gillumhouse]

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

.

I prefer to clean the bathrooms the day of arrival because if there is a couple days between there is time for dust to settle and I would have to clean again. The last GPS gave me 30 minutes - just enough time to clean the bathroom and get IN the grocery for the fruit basket. By the time I got back - they were HERE! It was so unusual to get a call for the same day! NOW, thanks to GPS I am staying more "guest ready" than we used to. I am up for more of them!

 

[MooseTrax]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

We don't have to pay a commission for overflow, they will refer to us when full with no money exchanging hands. However, they will do their best to fill every other hotel in the area first. Stated rates tonight are over $200. I don't know what a walk-in could get a room for at this point.

 

[MooseTrax]

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

.

I prefer to clean the bathrooms the day of arrival because if there is a couple days between there is time for dust to settle and I would have to clean again. The last GPS gave me 30 minutes - just enough time to clean the bathroom and get IN the grocery for the fruit basket. By the time I got back - they were HERE! It was so unusual to get a call for the same day! NOW, thanks to GPS I am staying more "guest ready" than we used to. I am up for more of them!
.

Speaking of cleaning bathrooms, I just went to put a newly washed quilt on a bed upstairs and found every light on and the vacuum standing in the hallway. Someone forgot to finish the cleaning today and turn off the lights. And my big booking just emailed and let me know their flight was canceled so they won't be arriving tonight after all.

 

[JBloggs]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.

Yes but meanwhile people have bills to pay, and plenty of BnB's in resort areas are going under. Your guests are booked in advance, correct? She is talking about walk ins, in a place where that is common. Imo if there are plenty of walk ins and they are all saying the same thing...what should you do? If it is just one or two, then forget about them totally and keep on doing what you do.

 

[Samster]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

Do I need to remind you that you're in Hawaii?

 

[Samster]

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

.

I have prepared myself to get a "walk in" business trade due to GPS but I still get them fairly far out, sometimes calling in the morning for that evening, so not really walk ins. The walk in walk in look around up or down their noses and think they can tell YOU how much they want to pay.
As discussed many times here, that is a normal thing in many countries. The "rack" rate is never paid by a walk in, you are supposed to get the "clearance rate" so to speak. So here in America we are offended by that.
I think the magic number of $80 for hotel/$100 for B&B. Not sure where I got that figure from, maybe someone here on the forum.
Do what that resort in SD did, sure $100, $10 pp to shower, $10 pp for breakfast, $10 per car to park here and lastly $10 per half hour for wi fi.

The one person was looking for that sort of deal! 'We'll pay this much and we won't use these items.' And then he listed what they would not use in the room. I almost took him up on it. I was going to go remove $50 worth of amenities out of the room. Pillows, towels, soap, one roll of TP, all the tissues and maybe the comforters. Definitely the A/C. The better half was aghast when I mentioned that.
.

Oh, good grief! I hope you let them walk away. They sound like my renter that we had for a time before we opened. I told him that we had to go up on the monthly rate to cover the utilities. (He kept the place ice cold in the Summer.) He said, "I can rent a place for $350/month." I said, "I think you should take it but you'll miss your big jetted tub." He said, "Oh, I never use the tub, I'll be fine." What the heck?! He used that thing all the time. Anywho, again I said, "It sounds like a great deal, I think you should take it and enjoy the cube fridge and hot plate" (he had a full sized kitchen, fully equipped here). Guess what? He ended up renting a furnished corporate apartment for more than twice the price of what I was increasing the rent to.
Here's your sign....

 

[Tim_Toad_HLB]

Moose Trax,
As a few others have said, only you can know your comfort zone and financial requirements to keep afloat. Many of us get virtually no walk in or last minute traffic, so our experiences and opinions should be weighted by that fact as you consider what to do.
We're all different, with different needs and financial constraints and demands.
Face it, there are some in our industry who are doing this more as a hobby than their main line income source and might have secondary income sources or retirement income they can fall back on.
Folks like that can take a much harder line about not compromising on anything than those of us who have chosen this line of work as our primary income source, have major financial investment into it, and as a long term vocation.
Go with your gut and your heart. If you honestly feel like you can deliver as good of quality experience without even some unspoken or unacted upon resentment, than get the rooms filled, pay your bills, and live to fight another day.
Personally, I look at it like Breakfast Diva's porno analogy. I know when we're being insulted and the sting and warts of a potential guest offering some ridiculously low price to us doesn't go away once they are here. If they have the audacity to go anywhere near 40-60% off our stated rates, once here the kind of tacky, boorish behavoir is certain to follow.
We've budged too far a few times and regretted it each time.

 

[happykeeper]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

We don't have to pay a commission for overflow, they will refer to us when full with no money exchanging hands. However, they will do their best to fill every other hotel in the area first. Stated rates tonight are over $200. I don't know what a walk-in could get a room for at this point.
.

the thinking was that maybe a small fee would send some of that traffic your way? I really don't know if that is possible, it's just a thought

 

[happykeeper]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.

Yes but meanwhile people have bills to pay, and plenty of BnB's in resort areas are going under. Your guests are booked in advance, correct? She is talking about walk ins, in a place where that is common. Imo if there are plenty of walk ins and they are all saying the same thing...what should you do? If it is just one or two, then forget about them totally and keep on doing what you do.
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We could play to a walk-in market if we wanted to because of our location, but most are advance.
I understand that walk-ins are more price sensitive. I was just suggesting that the price may not be what needs adjusted. It sounded more like a marketing or sales issue.
If you think about the "have to pay the bills" notion, I would be inclined to say that deep discounts to raise occupancy will, in the long run, make paying the bills much harder.
I also want to say that I am sympathetic to this challenge and the solution isn't as easy as someone knucklehead like me tossing out a few unfinished pearls. I was just thinking, "what would I do if the hotel down the street was booked at twice my rate? Maybe something one of us says will generate a spark and an idea on what to do.

 

[happykeeper]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

Do I need to remind you that you're in Hawaii?
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No ma`am

 

[MooseTrax]

I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..

But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
.

I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.
We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
.

We don't have to pay a commission for overflow, they will refer to us when full with no money exchanging hands. However, they will do their best to fill every other hotel in the area first. Stated rates tonight are over $200. I don't know what a walk-in could get a room for at this point.
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the thinking was that maybe a small fee would send some of that traffic your way? I really don't know if that is possible, it's just a thought
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the thinking was that maybe a small fee would send some of that traffic your way? I really don't know if that is possible, it's just a thought

Are you thinking $10? Because I could almost guarantee that if I did that the guest would then want another $10-$50 off even if they know they already saved themselves $100 by not getting a room at the hotels. Still, it would almost be money under the table to someone at the front desk because they do have a mandate to fill all the hotels in their chain first.