Just Set 2022 Rates - A Few Thoughts

[Arks]

I just raised my rates to match the cost of living increase Social Security just applied. I'm also raising what I pay my housekeepers a matching amount.

With the highest inflation in years, it's really a business necessity to have the rates try to keep up. Actually, I didn't raise the rates quite as much as they are raising Social Security, but almost as much.

Making the rate changes on the website and at "Air" took the most time. I'm realizing it's really important to not post rates all over my website. Keep it simple! They're only listed once on each room page, and I have one "Our Rates" page that puts it all in once place. So took a while to visit each room page, do the math, and make the changes.

Raising rates in ResKey was the easy part. Just go to Properties/Rate Plans, visit each Rate Plan, click on the Rate Rules line, Set the new rate for Sunday, then click on "set all same as Sunday" (assuming you don't have different rates for different days) and click Save Changes.

Now I can sit back and feel good that at least I'm not going deeper in the hole every day, I hope!

 

[Morticia]

I used a range of rates chart on the website. Different rates by season and room. The chart was on the individual room page. A yearly range was on the overall roompage. We never charged the upper rate. What took me forever was adjusting all package prices. ResKey also took some time because of different seasonal rates and different prices by room.

Good for you for looking out for your housekeepers!

Happy New Year!

 

[Arks]

Good for you for looking out for your housekeepers!
Happy New Year!

My life is much happier when the housekeepers are happy! I did all the cleaning myself when I opened in 2013 (hmmm, next year is 10th year!) but hired help in 2014 and she's still with me. I hired another one in 2015 and she's still with me too.

They log on to ResKey on their phones and can see when something needs cleaning, so I don't have to give them a schedule. They just go and do it, and let me know when I need to order more of this or that. So things have pretty much run themselves for years, and I hope to keep it that way!

 

[Momma Smurf]

I don't have any rates on our website. Everyone has to go into ResKey and check their dates for availability AND prices. RK feeds my rates to Air.
Pure simplicity.

 

[Arks]

Everyone has to go into ResKey and check their dates for availability AND prices.

I basically do the same. I don't have anything exact on the website. Since I use ResKey's Yield Management feature, rates vary depending on dates and availability. And I often have higher rates on holidays and local festival days.

On the website it says "Nightly Rates From $X" on each room page, where X is the lowest rate Yield Management would ever impose, but to get exact info you have to put in arrival departure dates in ResKey.

Regarding Air, I know ResKey shares my availability with Air, with iCal links. But I didn't know Air could get the rates from ResKey. Are you using a 3rd party External Connection?

 

[FHI2426]

We set rates based on the market, not our costs.... I have standard weekday (M-W) and weekend (Th-Su) but when I see the rates from the 5 large hotels within 1.5 mi of me jacking prices to the sky on weekends, I raised weekends more but usually not to the level of the chain hotels. It looks like the large hotels are really filled up already from Easter to Thanksgiving with weddings on the weekends. They got 800 rooms, I have 6, so I need to peel off 6 of their rooms and I'm sold out... Likewise in offseason, I go much lower but some of those hotels are in the gutter , under $100 a night and I dont go anywhere near that either.... It all comes down to knowing your market and target customers.... changing rates in Think is easy....

 

[Momma Smurf]

Regarding Air, I know ResKey shares my availability with Air, with iCal links. But I didn't know Air could get the rates from ResKey. Are you using a 3rd party External Connection?

Yes, they have a "new" channel manager that synchs perfectly with AIR called Channex.

 

[Arks]

Yes, they have a "new" channel manager that synchs perfectly with AIR called Channex.

Sounds great, but I hate companies that won't put their rates on the website! (Or I could be missing it, but I've looked all over their website.)

 

[gillumhouse]

Thanks, Arks. I finally raised my rates for the first time in a few years. Not a lot on the nightly, but did raise a chunk on the Elopement - I am certain the bouquet will be quite a bit more in 2022. Thanks for the reminder.

 

[Generic]

I put my rates up $10 a night across all the rates, to cover increases in food and that. But we still have a room and a half that are closed. Been thinking of changing things so that we sell one instead of king as king and queen with up to 4 people always, with private detached bath. Want to reset the room with a king to have more of a living room section, with a sofa.

So, I'd have one suite (detached bath), one king (detached bath), two queens (ensuite) and have just 1 room closed. Just worried that the suite's price might be too much for some. But then... with Covid, it's not selling as shared bath.

 

[GoodScout]

We did a deep dive into how our costs have changed over the past 2 years, and have made the decision to adjust our rates accordingly and aggressively. Those things that require a great deal of our time and resources have had their respective fees increased substantially (3rd and 4th guests, extra pets, late check-ins and check-outs, etc.) If you want the special service that costs us, it will cost you. After nine years, we've established ourselves. Now it's time to make money during the second half of our run and start saving for retirement.

 

[Arks]

Those things that require a great deal of our time and resources have had their respective fees increased substantially...

Great idea, to use rates to discourage things that take you more time and money. My rooms only have a king size bed in each, so I HATE it when third/fourth person means I have to put out the air mattresses, and sheets, pillows, blanket. I should up the rate more for those extra people!

After nine years, we've established ourselves. Now it's time to make money during the second half of our run and start saving for retirement.

Well said!

 

[JimBoone]

Now it's time to make money during the second half of our run and start saving for retirement.

Gee, I thought this business was retirement

 

[Morticia]

@Arks We had a hotel next door that used to charge ~75% extra for a third person. Most people booked a second room. We didn’t allow air mattresses, so they had to book the second room. (We also had two rooms permanently set up for a third or fourth guest for those people with kids or who needed the second bed.)

 

[Momma Smurf]

Sounds great, but I hate companies that won't put their rates on the website! (Or I could be missing it, but I've looked all over their website.)

Sounds great, but I hate companies that won't put their rates on the website! (Or I could be missing it, but I've looked all over their website.)

I think it's $25 a month extra (also links other OTAs, which I don't use). It blocks rooms immediately also, so no chance of double bookings. That is worth it for me.

 

[JimBoone]

@Arks
Rates on website - I agree in that I often price shop for items of casual interest and seeing prices tell me if I'm wasting time dreaming about that item yet for us it is like listing the make, model and options of your auto purchase, too many variables without more information. Our rooms come in small, medium, and large (1 to 3 beds) and costs vary with the time period, guests always expect the lowest price in a static listing or seems that way to me.

Rates to discourage - I too raise if guests exceed normal sleeping space, a small amount to nudge the guest with a toddler to take the larger room, a hefty amount for an extra adult to discourage young folks from cramming additional in my rooms.

 

[GoodScout]

@Arks
Rates to discourage - I too raise if guests exceed normal sleeping space, a small amount to nudge the guest with a toddler to take the larger room, a hefty amount for an extra adult to discourage young folks from cramming additional in my rooms.

Had a situation like that this holiday week.
Man called at 10pm to book room for next evening. Wanted room for 5. We had one that holds 2. SO told him so sorry, but he kept trying to convince her just to let his 4 adults and 1 child in. She said no.
30 minutes later we get an online booking for the room for 2 people. Lady's name. We have a pretty good idea what's going on.
They wait until 10pm to arrive (I guess hoping we'll just do a self-check-in). Nope. I greet the man and woman that walk in, give them the tour, show them the room, and twice remind them it only holds 2, giving them every chance to "fess up." Nothing. I had already set a ring camera toward their suite's front door, so I'll have evidence if they do what I know they're going to do.
After I leave them, I walk back to the front and - just on instinct - walk over to their car. Two adults and a kid in the car. I roll down the window, ask "can I help you?" and am told "We're just waiting for our friends."
"And where are YOU guys staying tonight?" I smile. He stammers and before he can answer the other two walk up.
Told them they couldn't stay with me. The room only holds two. I'm not getting into trouble with the Fire Marshall. The Hampton Inn is 30 minutes away and you can put however many you want in their rooms. The woman tries to claim that "the lady" didn't tell them they couldn't have five, and I reply "Well, I know that's a lie, because I was standing right next to her when she said it."
"We don't have phone service to call."
"Use the wifi, make your reservation at the hotel, and be on your way. You're not staying here tonight."
Usual whining about refunds. I remind them I'd told them at check in I'd turned away 5 different couples who wanted their room. Nope.
Holiday week is always hell week for us. Glad its over. Now I'm going to go look at my deposits so I can remember why I put up with it.

 

[2cat_lady]

I'm stuck with rates that I set last May. Our rates are printed in our provincial guidebook so that was the cutoff date. Thankfully, I had raised the rates before COVID hit so that has helped. As well, I'm not tied to rates on the OTAs so they definitely got raised. And.... so far not a peep from them. For the first time, I make more if someone books through them!

 

[Arks]

"Use the wifi, make your reservation at the hotel, and be on your way. You're not staying here tonight."
Usual whining about refunds. I remind them I'd told them at check in I'd turned away 5 different couples who wanted their room. Nope.

You're my new hero!

 

[Tom]

Getting me thinking ... I could bump rates a little, but my $175 to $195 seems to match my market and the $195 books at about one-third of the $175 even with the only 2-person tub as an amenity, which is a sort of message. What I really wish I could do is cut back on single night stays but keep overall revenues up. Agin, our market is a lot of travelers and not much destination stays.