Good news or bad news?

[undersea]

Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.

Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
.

One could try do some predictive modelling. If 100% occupancy at rate X produces a certain amount of revenue, would 80% occupancy at rate Y or 60% occupancy at rate Z produce more or less revenue? (might also want to consider difference in expenses at different levels of occupancy, as ultimately it is revenue minus expenses that matters). Of course you would have to guess (or do trials) as to what rates Y and Z would have to be in order to yield the 80% and 60% occupancy levels...
.

Good old supply and demand

 

[Joey Camb]

Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.

Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
.

One could try do some predictive modelling. If 100% occupancy at rate X produces a certain amount of revenue, would 80% occupancy at rate Y or 60% occupancy at rate Z produce more or less revenue? (might also want to consider difference in expenses at different levels of occupancy, as ultimately it is revenue minus expenses that matters). Of course you would have to guess (or do trials) as to what rates Y and Z would have to be in order to yield the 80% and 60% occupancy levels...
.

we put ours up but were wary of pushing it too hard because of reviews - however it has actually increased the quality of the guests!

 

[Morticia]

Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.

Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
.

One could try do some predictive modelling. If 100% occupancy at rate X produces a certain amount of revenue, would 80% occupancy at rate Y or 60% occupancy at rate Z produce more or less revenue? (might also want to consider difference in expenses at different levels of occupancy, as ultimately it is revenue minus expenses that matters). Of course you would have to guess (or do trials) as to what rates Y and Z would have to be in order to yield the 80% and 60% occupancy levels...
.

we put ours up but were wary of pushing it too hard because of reviews - however it has actually increased the quality of the guests!
.

we put ours up but were wary of pushing it too hard because of reviews - however it has actually increased the quality of the guests!

Same thing I tried to teach the kids - you take better care of something you paid good money for. (Which mostly got me out of buying them everything they wanted if they didn't chip in half. Bad mom.)

 

[gillumhouse]

Beachie, I just looked at your bookings and rates! Here's the good news: On July 2nd you are already 84.4% Booked for July; and 86.7% Booked for the first half of August. The bad news: This indicates that without a doubt your prices for an ocean B&B are way too low!
We are in a similar tourist destination and there are crap ocean hotel/motels charging over $250 a night!!! THE EXCELLENT NEWS: You can easily raise all your prices immediately by $20. Then add on another $20 to $30 premium for Friday and Saturdays. And you have two rooms with King Beds!
Seriously, most B&Bs up the coast are not anywhere near your bookings level on the second day of the month. That's just crazy. Folks know you are a bargain.
So treat yourself to a Birthday Gift and don't be afraid to test the market! (Take a peek at our peak season July/August pricing: we're 500 yards away from the ocean, no kings, and we will end up with a 95% occupancy rate for the summer, lots more $$, and less pitas, as we have for the past 10 years.)
You can always adjust rates dynamically down (or up) if need be..

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.
.

Wow. Thanks. I am emailing your response to DH. We are blown away by our bookings %. We surely did not anticipate this based on last year. Thank you for your analysis. It is interesting to see it though another set of eyes.

Momma is absolutely correct. If you are that full right now your rates are much lower than what the market will allow.
.

One could try do some predictive modelling. If 100% occupancy at rate X produces a certain amount of revenue, would 80% occupancy at rate Y or 60% occupancy at rate Z produce more or less revenue? (might also want to consider difference in expenses at different levels of occupancy, as ultimately it is revenue minus expenses that matters). Of course you would have to guess (or do trials) as to what rates Y and Z would have to be in order to yield the 80% and 60% occupancy levels...
.

we put ours up but were wary of pushing it too hard because of reviews - however it has actually increased the quality of the guests!
.

we put ours up but were wary of pushing it too hard because of reviews - however it has actually increased the quality of the guests!

Same thing I tried to teach the kids - you take better care of something you paid good money for. (Which mostly got me out of buying them everything they wanted if they didn't chip in half. Bad mom.)
.

I was brought up heating quality over quantity. Saving up to buy one really good item was better because it would out-last the cheaper one and save in the long run. I was also a "bad Mom" - I bought the good stuff on the sale rack of the best stores and still came out ahead.