Our rates are about right for the area and after being TOO low for several years in the beginning, we have gradually increased our way to what they are now. I wish we could go a little higher, but I know the market better now. We do not discount for 1 night stays. Not to say we never did but have realized that it just is too much trouble. Until recently, we never had walk-ins as we are 'off the beaten path', but with today's technology we are now in the spotlight. (well at least a flashlight). Usually we get calls from the road asking for availability and/or rates instead of just showing up unannounced.
I can not see having a RACK rate but never charging it. If that rate is out on the website but they really do not charge that amount, they are clearly loosing business from the start.
For us keeping our rates at an amount that is near or at the top of the market, and then discount for multi night stays 10% for 2 - 4 nights, 15% for 5 or more nights, except for holidays and event periods, works well. We offer Gov/military/Corp. rates Sun-Thrus. for 1 person current gov. per diem here is $96, we do get quite a bit of business travelers and of these, most become repeats or great referrals to others. I even get some that return with their spouse on vacation.
In order to provide discounts you must have that figured into to your business plan and your rate scale so you make per month what you want to. Weither you call them discounts or not, reducing your rate is just that, I just call em like I see em and in today's mind set, most like hearing that word!
We are also very slow in the summer months and are getting ready to do a summer package using our 10th anniversary as a method market to our past guests. We may also do some regional publicity. Sure hope this draws some in as my books are very empty right now.
