happykeeper
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Ah, I see what you are saying with that. HMMM...befriending the front desk and using bribes...that might be a little dicey.... maybe its more about how to get your name in front of these walk-ins during decision time with some information that suggests a greater value can be had for the same money.the thinking was that maybe a small fee would send some of that traffic your way? I really don't know if that is possible, it's just a thoughtWe don't have to pay a commission for overflow, they will refer to us when full with no money exchanging hands. However, they will do their best to fill every other hotel in the area first. Stated rates tonight are over $200. I don't know what a walk-in could get a room for at this point.I am inclined to agree with GH here. We have not discounted our rates and we considering raising them or eliminating our 3-tier scale for longer stays. There are specials galour out there right now and we think those properties will have a hard time later when things improve, whereas we will be poised to raise our rates as demand increases.But if you are current with the rates of the area and they are just playing the how chep can I screw them down to game - it is better that they walk. Would you really want word of mouth advertising that you can be beat down in your price?I don't get requests for discounts...almost ever. Of course, we are the smallest and most affordable Inn in our region for what we offer.
If I WAS getting constant requests for discounts, and had rooms going unrented, I think I would put my pride on a back burner and put some research into my current rates.
Fair market rates are not what the Innkeeper WANTS to get, it's what the market will bear for what is offered. Of course, if you're perfectly happy with your current occupancy rate and revenues, then you can ignore me..
It also translates to preception of value. If an inn is willing to "take whatever is offered" the perception is that they are not a place of value - a "nice" place. The owners are so desparate for guests they will take whatever is offered. And if what is offered is not enough to sustain the business - there is no business.
While some rates make me gulp - their tax bill makes me gulp, cringe, and go into a fetal position and their insurance rates would send me to the "rubber room". And we all know from experience, sometimes the way to INCREASE occupancy is to RAISE rates. Otherwise you have the "what is wrong with it" factor. We walk a fine line in many ways.
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We get reservations for exactly the reason that we do not barter. There is a confidence that we are charging a fair price for what they will get.
On the hotel down the street being full- the last thing you want to do, IMHO, is lower your rates even more. It could be as simple as finding a niche or getting more exposure. It doesn't sound like a rate issue. We are in the rural area of Hawaii and rates are not the issue for us. Getting people excited enough about what we offer to choose us has always been the key. If your confident that you offer as good or better product than the hotel, would it be possible to partner with them and pay them a commision for overflow. Don't know- just brainstorming. It seems like everytime we get outside of the box we're in, something good happens.
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.Are you thinking $10? Because I could almost guarantee that if I did that the guest would then want another $10-$50 off even if they know they already saved themselves $100 by not getting a room at the hotels. Still, it would almost be money under the table to someone at the front desk because they do have a mandate to fill all the hotels in their chain first.knkbnb said:the thinking was that maybe a small fee would send some of that traffic your way? I really don't know if that is possible, it's just a thought
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MT, we have worked on our marketing from day one and it still baffles me much of the time. Our latest marketing thing was that we pushed hard to get our tourism bureau to tap into our local coffee farmers for an upcoming media event. If we're lucky, we get a mention in a press release. Point is, we try all kinds of things to keep our name out there. No rock is too small and no stone is too big, or something like that.
Because of our location, we do get a fair amount of gawkers and drive-ups. They seem to come in clusters- as if a great airfare popped for next day travel and a bunch of folks arrive without rezs. Not sure. Anyway, we have a few options that we give them that are beds for a bargain, which is best for most people. Occasionally however, the drive-up is not as price concious and when they see that we are suggesting a spot down the road for half of what we charge, they decide to stay with us. Is it the same as your situation? No, but it is what makes me think price is not always the answer and that some changes in strategy could get some of those folks on your radar screen. I have recommended a book called, "Attracting Perfect Customers" before and it does a far better job than I explaining all this stuff.