Increasing room rates in 2011?

[JBloggs]

Are you planning on increasing room rates for 2011? What is your formula, how did you come to the decision to do so?

 

[Breakfast Diva]

We're going to have to. Everything has gone up on us and we've kept the same rates for 2 1/2 years. It will be a small increase, just $10 per night and so it means that our "regular" rate will be what now is listed on our site at the top of our small range. Past guests will have already seen this rate on our site for a long time so I'm hoping they won't notice much. We're already at the top of where we can charge.

 

[InnBloom]

(An aside...I HATE looking at the electric bill! For whatever reason, we have 3 different meters and so 3 different bills. (Don't even ask). They are like Papa Bear, Mama Bear and Baby Bear....but the biggest problem is it's like a game of Russian Roulette when you open the bills because you don't know which one is which. They all come at the same time in different envelopes. So I open the first one and think "Ok, if that's Papa Bear, we're okay.....but if it's Baby Bear we're REALLY in trouble!" Pretty stressful.....and yes, we're usually in trouble!)
Regarding raising rates....the original point of this thread:
We have recently raised rates, within the last year, so I'm going to need to go easy. I haven't raised across the board except for instituting a higher weekend rate that works out to 7-18% more than weekday depending on the room. And I've bumped rooms up as I've converted from Double to Queen, or from Queen to King, or added a working fireplace, etc. But I think I have some room to raise a bit based on other local rates, so may do so.

 

[gillumhouse]

I am considering going up $6 in the premium room and $4 in the shared rooms. I looked at the electric bill!
Edited to add: I usually raise my rates a few dollars every couple of years to avoid "sticker shock" for guests. I also will have a ceiling as to where I can go due to the rates at the many, many hotels/motels in my area. I cannot price myself out of existence since I am not a fancy place and do not/will not have the Jacuzzi/hot tub or any of the pricy amenities. I will do my hotel rate calls after the first of the year to see what they are doing. Will try to remember to do it again in May to see if rates change. Hmmm, may be another spreadsheet tracking - what are the rates where.....

 

[Tom]

Tough question. At the moment, online rez for 2011 is mostly set at last year's rates, but we will change a little, including more premium dates, increase weeday/end differential, probably adding $10 to ADR across the board while keeping our lowest rates where they are. As to the formula? DW and I argue about it; the one who knows least about the business picks the rates. At least that is the way is seems. What I'd really like is more two plus night stays, which I think will happen as we become better known - only open a little over a year now, so only one real stong season of experience.

 

[greyswan]

Last year we raised our rates just on the weekends. This year we bringing the weekday rate up to match the weekend rates (up $5)

 

[Copperhead]

Just did, well sorta! Just raised our rates $10 across the board, but if they book online they save the $10. This will be my only discount this year - removing all others. Well aside from business guests (1 person, weekdays) which I will need to keep. Per diem rates have gone down $9 here, but the hotels are trying to get this overturned - I'll leave that to them to handle, I'll just reap in the reward if it is accomplished. I will continue to play my cards on this by driving the full early breakfast & my low tax rate (compared to the hotels).
If costs keep inching up, so will I, but will do it small & maybe seasonal.
So far, I have had many bookings paying the full rate, and booking % wise, I am running about the same as before the cost incease.

 

[Joey Camb]

We usually put ours up $10-15 per year but the law here is different we can put a range ie $120-$300 but we have to publish them in our reception and at the front door. However I only have to sell one room once to comply so I simply set a higher rate in my mind than las year.

 

[Alibi Ike]

We usually put ours up $10-15 per year but the law here is different we can put a range ie $120-$300 but we have to publish them in our reception and at the front door. However I only have to sell one room once to comply so I simply set a higher rate in my mind than las year..

AAA requires we publish rates about 18-24 months in advance. So, my rates are always very high in that book. The 'correct' rates are on my website.

 

[egoodell]

Have not considered B&B rates going up. We will be raising the wine tour rates. We charge $250/couple including all tasting fees and an expensive cheese plate, and the limos charge around $350 without paying the tasting fees or feeding people. I think we will go up to $270 or $290 a couple.
But they advertise "Starting as low as $46 per person...." which is a bit of misadvertising as it never is that low unless you have a group on a big bus...
RIki