Welcome back Audrey, we've missed your stories. When the rest of us slow down you will have to share more as you are probably less seasonal there.
The room rates do depict more issues, that is a given. I know in San Diego the lodging has always been lower than the rest of the country, the food is less as well, and imo better than most any city. That is something that many can't comprehend who may be charging $130+ to be in a small town. Last Christmas I paid $89 to be in Old Town (tourist area for those not familiar).
I remember when we looked at an inn in New Hampshire the owner had to compete with all the other inns and the peak season rates were ridiculously low. I had no idea, but when in Rome....
JBloggs said:
I remember when we looked at an inn in New Hampshire the owner had to compete with all the other inns and the peak season rates were ridiculously low. I had no idea, but when in Rome...
Those rates still haven't gone up much. Everything else (food, utilities) in those areas has gone up a lot. So glad we didn't buy anything where we looked.
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They probably need one brave soul to dive in with an increase so they can all raise rates.
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gillumhouse said:
They probably need one brave soul to dive in with an increase so they can all raise rates.
YES! Why do prices plunge in the winter?!? We work harder and costs are higher. I know its because there are less people traveling but if we all band together and keep prices reasonable, I don't think people won't come…. I mean a place down the street starts at $375 in summer and $55 in winter…. Really?!?
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My rates stay the same - year round. I still get people who are traveling. The gas bill is higher in winter than the electric bill in summer. And since my rooms are electric baseboard heat, they are only heated when we have guests. Even with the heat on in those rooms, electric bill is not as bad as the gas bill that heats the first floor only.
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Gillum said: "My rates stay the same - year round".
Yep same here. My stock answer to winter discounts is: "We don't jack our rates in Summer"
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We've always keep the same rates year round, okay, partly not being sure I could keep up with the changes, but does it place me at a disadvantage with those that play the game? Granted we are different as a tiny motel competing with large properties that change rates by the hour. I don't want to be outrageous during the good times, yet on a slow time I may be high if I don't change a bit based on demand.
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The quality is still there. I do not get actual potential guests looking for cut-rates, those who are in that category are people I do not want anyway. Winter or summer, my guests get value. I am not going to cheapen my product - reduced rate says "you can't sell me any other way" - it becomes the "let's get rid of it", Clearance Rack item.That is not us.
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Oh I agree with what you are saying and never would suggest a fire sale rate, as you say I don't want "those" guests, however in our case we are 8 rooms in an area with a dozen or more large newer properties, this month, October, we are probably priced pretty close with the place that I'd call less desirable while those I'd call nice are prices from 25 to 200 higher than our rate. We hold out for both Friday and Saturday bookings and get the nice guests that I enjoy, but probably could nudge rates up a little this season and still get the nice folks, yet in the slower seasons those same new properties more nearly in line with mine as they are large and need to fill rooms and the perception is that they are new and we are old, I'm just feeling out the idea of a small swing up in the prime periods and down is the slack periods.
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