Lowering rates

[TheBeachHouse]

This past summer we had two rates.
One for the three king bed rooms and the two room suite and one $50 less for the 'down the hall' room and the 'limited view' room.
Naturally, the two 'cheap' rooms sold out first. One of the expensive rooms was almost always empty (hand held shower, we think is the reason.)
We talked it over and decided we might sell more if we lowered the price of two of the four expensive rooms. We will leave the two with the best views and the kitchenette at the highest price and lower the two others to $20 less.
Have you had any experience with creating interest with lower prices?

 

[JBloggs]

Our most expensive rooms sell first. But we are a diff demographic, yours are wanting a destination ours in those rooms are celebrating an anniversary or something.

 

[gillumhouse]

I have a $36 spread between my best room and my budget room. Personally I think a $50 spread is too much - but that is your inn.
I would have a $20 difference max between the hand-held shower and the "limited view" and up the rate on the budget rooms by at least $10 or $15. I would hazard to guess that would give you several "layers" of bargain hunters, perhaps get heads in all the beds, and not give you a revenue hit. If it does not work, you can always make adjustments the following year - or even mid-year.

 

[MtnKeeper]

We did this with our jacuzzi room with the corner shower. It's only $10 less than one with larger bathroom and $30 less than the biggest. It gives a range and even that $10 seems to matter to some.
our room spread is $190 to $315 but there is a huge difference in the 9 rooms.
Summer less expensive rooms book first, winter most expensive jacuzzi ones do.

 

[TheBeachHouse]

We will have a $20 tier. expensive minus $20, then minus $20 for cheap. So it will be a $20 spread.
We think it will help sell the middle rooms and make the expensive rooms more desirable.

 

[Generic]

Depends on the season for us. But basically the most expensive and least expensive are often booked first. Funny, but our best rooms are the last booked because people don't realize the value. (shared bath, but incredible room).

 

[Breakfast Diva]

I have a different take on this. Please don't take offense, but I think it's your website. I took a good look at it this morning and the very limited photos of your rooms and the descriptions need some help. You need to sell the rooms...beautiful pictures and descriptions of what they will experience in each room. The way it is right now, I would also choose the least expensive room because I can't really tell that there is a big difference.
Your room rates are not really expensive and I know that you're getting a lot of reservations from book ing dot com which means you're actually getting 15% less for each reservation. With the occupancy rate you shared with us the other day, there is no reason to lower your rates. Put time and a little $ into making your website show off your rooms better.
Consider doing a separate page for each room. Show us beautiful photos and describe each room as if you were reading about it in a book...how are they going to feel in each room? Why not have that large homepage picture scroll through with beautiful pictures of your rooms? Your photo gallery doesn't even have room pictures...sell those rooms!

 

[TheBeachHouse]

I have a different take on this. Please don't take offense, but I think it's your website. I took a good look at it this morning and the very limited photos of your rooms and the descriptions need some help. You need to sell the rooms...beautiful pictures and descriptions of what they will experience in each room. The way it is right now, I would also choose the least expensive room because I can't really tell that there is a big difference.
Your room rates are not really expensive and I know that you're getting a lot of reservations from book ing dot com which means you're actually getting 15% less for each reservation. With the occupancy rate you shared with us the other day, there is no reason to lower your rates. Put time and a little $ into making your website show off your rooms better.
Consider doing a separate page for each room. Show us beautiful photos and describe each room as if you were reading about it in a book...how are they going to feel in each room? Why not have that large homepage picture scroll through with beautiful pictures of your rooms? Your photo gallery doesn't even have room pictures...sell those rooms!.

I have a different take on this. Please don't take offense, but I think it's your website. I took a good look at it this morning and the very limited photos of your rooms and the descriptions need some help. You need to sell the rooms...beautiful pictures and descriptions of what they will experience in each room. The way it is right now, I would also choose the least expensive room because I can't really tell that there is a big difference.
Your room rates are not really expensive and I know that you're getting a lot of reservations from book ing dot com which means you're actually getting 15% less for each reservation. With the occupancy rate you shared with us the other day, there is no reason to lower your rates. Put time and a little $ into making your website show off your rooms better.
Consider doing a separate page for each room. Show us beautiful photos and describe each room as if you were reading about it in a book...how are they going to feel in each room? Why not have that large homepage picture scroll through with beautiful pictures of your rooms? Your photo gallery doesn't even have room pictures...sell those rooms!

No offense taken. I asked! Good feedback. Thanks.
Updating the website with better pictures is the big winter project. I just finished updating the room descriptions on the brochure with words like romantic, tranquil, and sweeping views and spacious.
We are planning pictures of the bed, sitting area, fireplace and view for each room.

 

[gillumhouse]

We will have a $20 tier. expensive minus $20, then minus $20 for cheap. So it will be a $20 spread.
We think it will help sell the middle rooms and make the expensive rooms more desirable..

What I meant by the $50 spread in rates being too much was that the less expensive rooms should be MORE. I would have a much smaller spread between most expensive and budget. What you are planning sounds as if it will be a $40 spread between best and budget. You offer private baths - even if it is down the hall. Get robes and you are the lap of luxury.

 

[TheBeachHouse]

We will have a $20 tier. expensive minus $20, then minus $20 for cheap. So it will be a $20 spread.
We think it will help sell the middle rooms and make the expensive rooms more desirable..

What I meant by the $50 spread in rates being too much was that the less expensive rooms should be MORE. I would have a much smaller spread between most expensive and budget. What you are planning sounds as if it will be a $40 spread between best and budget. You offer private baths - even if it is down the hall. Get robes and you are the lap of luxury.
.

What I meant by the $50 spread in rates being too much was that the less expensive rooms should be MORE. I would have a much smaller spread between most expensive and budget. What you are planning sounds as if it will be a $40 spread between best and budget. You offer private baths - even if it is down the hall. Get robes and you are the lap of luxury.

The PO said we weren't charging enough, too. But we are among the most expensive in town. We're undercutting the most expensive by about 10 or 20. There are two. One has a way better view and the other serves full plated breakfast. Will keep your advice in mind. And take another look at the comps.

 

[Generic]

Okay, think of it this way, your need heads in beds. People want to feel that they get value for their money. That being true, you also need to make those who spend the most feel like they got something they wanted for the money.
So, let's say you have three different rooms, A, B and C. Classify them. In my case this what A, B and C are....
A. It's a chance to splurge for them. They appreciate that they have the small room, but they still get to enjoy the same house, the same breakfast, the same hosts, the same everything else. It's the experience without the price. And amazingly enough, when they come back, they covet moving up to B, not C.
B. It's the dream room with a small downside. It's the almost perfect room.
C. It's the room that's not the dream, but has the amenities that they really want. For some, this is the dream room because they won't accept the compromise.
Now, I have people who book C and covet B and people who will only book C. But the A people come back and either they love you and A or they move to B and bring friend to A.
Let's put it this way, you don't start going to the Ritz. And when you do, you start in the standard room and move up. It's the same thing, people want certain things and you have to make them feel there is a reason to pay the price of B versus A and then C versus B. That being said, it's not for everyone. Cell phone companies prove that all the time. Their marketing just doesn't aim for me as a customer. So you have to hit on the amenities they are willing to pay extra for and promote them.

 

[TheBeachHouse]

Okay, think of it this way, your need heads in beds. People want to feel that they get value for their money. That being true, you also need to make those who spend the most feel like they got something they wanted for the money.
So, let's say you have three different rooms, A, B and C. Classify them. In my case this what A, B and C are....
A. It's a chance to splurge for them. They appreciate that they have the small room, but they still get to enjoy the same house, the same breakfast, the same hosts, the same everything else. It's the experience without the price. And amazingly enough, when they come back, they covet moving up to B, not C.
B. It's the dream room with a small downside. It's the almost perfect room.
C. It's the room that's not the dream, but has the amenities that they really want. For some, this is the dream room because they won't accept the compromise.
Now, I have people who book C and covet B and people who will only book C. But the A people come back and either they love you and A or they move to B and bring friend to A.
Let's put it this way, you don't start going to the Ritz. And when you do, you start in the standard room and move up. It's the same thing, people want certain things and you have to make them feel there is a reason to pay the price of B versus A and then C versus B. That being said, it's not for everyone. Cell phone companies prove that all the time. Their marketing just doesn't aim for me as a customer. So you have to hit on the amenities they are willing to pay extra for and promote them..

That pretty much explains our reasoning.
The two that aren't as good (unattached bath and lousy view) are the cheapest. They are both lovely.
The two that aren't the best (no shower and queen bed) are the middle. Both are very comfortable and have good views.
The two at the top are on the third floor so have the most views, the most privacy, king beds and a kitchenette. So they are the best rooms. I want people to decide to 'splurge' for the best room or enjoy the 'bargain' of the not as good rooms without thinking they were ripped off.

 

[Arks]

I have a different take on this. Please don't take offense, but I think it's your website. I took a good look at it this morning and the very limited photos of your rooms and the descriptions need some help. You need to sell the rooms...beautiful pictures and descriptions of what they will experience in each room. The way it is right now, I would also choose the least expensive room because I can't really tell that there is a big difference.
Your room rates are not really expensive and I know that you're getting a lot of reservations from book ing dot com which means you're actually getting 15% less for each reservation. With the occupancy rate you shared with us the other day, there is no reason to lower your rates. Put time and a little $ into making your website show off your rooms better.
Consider doing a separate page for each room. Show us beautiful photos and describe each room as if you were reading about it in a book...how are they going to feel in each room? Why not have that large homepage picture scroll through with beautiful pictures of your rooms? Your photo gallery doesn't even have room pictures...sell those rooms!.

You need to sell the rooms...beautiful pictures and descriptions of what they will experience in each room.

Best advice I've heard this week. Rather than cutting rates, rooms that aren't being booked may just need better photos, better descriptions, better explanation of what's great or special about them.

 

[Silverspoon]

I have a $36 spread between my best room and my budget room. Personally I think a $50 spread is too much - but that is your inn.
I would have a $20 difference max between the hand-held shower and the "limited view" and up the rate on the budget rooms by at least $10 or $15. I would hazard to guess that would give you several "layers" of bargain hunters, perhaps get heads in all the beds, and not give you a revenue hit. If it does not work, you can always make adjustments the following year - or even mid-year..

gillium, here in the NE a $50 spread is not too much. We have a three tiered rate for our 3 accommodations so there is $100 between our smallest and most luxurious accommodation. The best (cottage) gets the most reservations, the next largest (3-room suite) gets the next and the charming but least expensive gets the fewest reservations.
But I agree with the idea of selling your rooms with more pictures and descriptions. Each one has charm and they all get YOU as their innkeeper.

 

[happykeeper]

Okay, think of it this way, your need heads in beds. People want to feel that they get value for their money. That being true, you also need to make those who spend the most feel like they got something they wanted for the money.
So, let's say you have three different rooms, A, B and C. Classify them. In my case this what A, B and C are....
A. It's a chance to splurge for them. They appreciate that they have the small room, but they still get to enjoy the same house, the same breakfast, the same hosts, the same everything else. It's the experience without the price. And amazingly enough, when they come back, they covet moving up to B, not C.
B. It's the dream room with a small downside. It's the almost perfect room.
C. It's the room that's not the dream, but has the amenities that they really want. For some, this is the dream room because they won't accept the compromise.
Now, I have people who book C and covet B and people who will only book C. But the A people come back and either they love you and A or they move to B and bring friend to A.
Let's put it this way, you don't start going to the Ritz. And when you do, you start in the standard room and move up. It's the same thing, people want certain things and you have to make them feel there is a reason to pay the price of B versus A and then C versus B. That being said, it's not for everyone. Cell phone companies prove that all the time. Their marketing just doesn't aim for me as a customer. So you have to hit on the amenities they are willing to pay extra for and promote them..

That pretty much explains our reasoning.
The two that aren't as good (unattached bath and lousy view) are the cheapest. They are both lovely.
The two that aren't the best (no shower and queen bed) are the middle. Both are very comfortable and have good views.
The two at the top are on the third floor so have the most views, the most privacy, king beds and a kitchenette. So they are the best rooms. I want people to decide to 'splurge' for the best room or enjoy the 'bargain' of the not as good rooms without thinking they were ripped off.
.

Tier pricing is an effective marketing strategy and can work well. We do not use that strategy because our rooms are so similar with one exception. The best thought about this comes from BD.
We have never lowered prices. Prices must go up. If you want to set a spread, raise the price of your best rooms and add value. Each and every year, we look at how we can raise prices and add value. Next year is scary because we are crossing a psychological price threshold, but scary doesn't deter us. Failure to stay ahead of the inflationary pressure on your business is a leading cause of innkeepers burn out IMHO.

 

[Madeleine]

We did this with our room with the bathroom down the hall. It can be up to $60 less per night. We saw a big jump in the bookings.
And, because it books quickly, it's not left sitting at the last minute when no one wants cheap, they want all the bells and whistles.
As long as it's clear why the difference, it works. But. 50% of guests either online or on the phone who ask for the cheap room never read why it was cheaper. I always mention the bathroom before I get their info.
Be sure it's clear why your other rooms are more (or less) .

 

[Flower]

My tall guests both women and men Love! the hand held shower. AS she said this morning . That is the best shower I have had in a few days. He thought it was great also. As he said man I can shower standing up. My older people love it cause they can direct the water to where they want.

 

[Madeleine]

Get creative with the pricing. Raise all the prices as you start to fill up. Lower prices if you're not busy enough.
We keep prices mostly stable but I do raise them as we hit 60% occ. Then, if we aren't full enough I can 'discount' but still get my rack rate.
This is hard to do if you're getting most of your guests from booking as you have to do this in multiple places.

 

[gillumhouse]

My tall guests both women and men Love! the hand held shower. AS she said this morning . That is the best shower I have had in a few days. He thought it was great also. As he said man I can shower standing up. My older people love it cause they can direct the water to where they want..

ALL the showers in my house have the regular shower head AND the hand-held "personal shower". The claw-foot tub has a "telephone shower" attachment if a shower is wished at the end of a "soak". This is because for 10 years that WAS the shower.
The personal shower attachment also makes cleaning the shower a lot easier. I spray on the cleaning solution, scrub with a sceub brush, and use the personal shower to rinse. Makes life easier when you have a 60 inch shower to clean.

 

[Kay Nein]

Just sharing my experience with rates:
When we took over they were dirt cheap $89 a night. No occupancy - go figure. We came in and immediately raised to $110. That went well for about a year as we built up the business. Then raised to $130, all was good. But, as soon as we tried $150 we stopped getting walk-ins and the advance reservations slowed down. We could tell almost immediately that the price was turning people off. We backed down to $140 and reservations picked up. It was alarming how noticeable it was that people didn't like that price. Now we have been at that rate (for our King, in season) for over a year and it's working out great.