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Greenbarn · Posted: Tue Jun 26, 2012 10:01 am Post subject: Rate Bands

I'm trying to review our rate bands; the number of them, and the periods they cover. When we started, I used the bands that were already entered in a simple UK based management package I started out with, but I've since moved on (PIMS, natch!) and it's time for a rethink before setting 2013 prices (which I need to do pronto as we're getting bookings for next year).

So - has anyone got a formula for all year UK availability that is reasonably successful and simple?

Any suggestions for the number of bands, and the periods they cover? We currently have 6, which are the three obvious ones of low, mid and high, each effectively subdivided. It causes problems with some of the listing sites.

All suggestions, thoughts and experiences welcome!
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KathyG · Joined: 28 Jan 2006 Posts: 2420 Location: Le Faou, Brittany

What do you mean that it causes problems with some of the listing site GB? I currently have 15 different rate bands......
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Nemo · Joined: 14 Aug 2008 Posts: 3141 Location: Norfolk

I currently have four prices that cover seven different periods but it's not enough! I need to introduce a different rate to cover June & September, as at present the jump is too big to peak I think.

Mine are currently:
Christmas/New Year
Jan to Feb half term
Feb half term to Easter
Easter to beginning July
July to beginning Sept
Sept to end Nov
Nov & Dec

Listing sites are more difficult; thankfully I don't have many and they are fairly basic, but it's not great to be shoved into restrictive bands and give guests false hope as to what price a date may be if it's not transparent.
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Greenbarn · Posted: Tue Jun 26, 2012 2:33 pm Post subject:

dizza2560 · Joined: 07 Sep 2011 Posts: 168 Location: york

Hi GB,
We are with Sykes, they do determine the rate bands, they are the same as Nemos. Hope that helps.

Greenbarn · Posted: Tue Jun 26, 2012 4:48 pm Post subject: Re: Rate bands

dizza2560 · Joined: 07 Sep 2011 Posts: 168 Location: york

GB, it just occurred to me, and I think this will apply to all UK owners, that although the half term rates tend to only apply for one week, we have found that often the half term date can vary by a week either side of the one determined by the likes of Sykes, depending on the area of the UK. This can also apply to the Easter break. Consequently, it may be worth checking on different areas to find the main half term holidays, but raise prices slightly for the weeks either side. That information can be found on the local authority sites I think.
Sorry if that is drivel from a newbie, but wanted to give by thoughts.

Margaret · Posted: Wed Jun 27, 2012 5:08 am Post subject:

We just have 2 bands - summer holiday and rest of the year. But New Year is charged as 7 days even if they stay less.
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charles cawley · Posted: Wed Jun 27, 2012 8:28 am Post subject:

Setting rates is difficult but, for new cottages, we recommend that owners start with a target but at lower starting rates and feel the market demand. As this becomes clear, rates can be adjusted upwards to reach the optimum.

This avoids the all too common costly error of going in too high and, painfully and expensively, inching them down to find out what you should have originally charged. The cost, in the latter case, can be many times the marginal lost income in the 'go in slightly too low' method.

We have developed something called The Rates Tool to generate rates from straight weekly prices within set periods. This enables flexibility and you can then put it into a computer to automatically generate prices for any combination of start and finish days without anomalies which can arise if, for instance, you extend a three day weekend break to six days on pro rata. It is a simple device using Excel to offer choice and flexibility and then convert that into a logical system computers can handle.

The market is becoming increasing transparent and highly rate sensitive... but people are becoming more insistent on quality. They are willing to pay a resonable sum but the old 'they can put up with that because its cheap' attitude has had its day.

Some cottages are now virtually unsaleable because people will not stay in them, however cheap they are. Incidentally, patterned bedding, except where it is plainly of the highest quality, is fast becoming a red flag worse than old fashioned TVs.
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Greenbarn · Posted: Wed Jun 27, 2012 9:03 am Post subject: Re: Rate bands

Margaret · Posted: Wed Jun 27, 2012 9:52 am Post subject:

Certainly, Scottish and Irish guests usually come in July, which extends the summer season nicely!
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Nemo · Joined: 14 Aug 2008 Posts: 3141 Location: Norfolk

falbayview · Joined: 17 Jun 2012 Posts: 98

i just followed what the local agent was doing... then cut his by 5% Smile

kendalcottages · Posted: Thu Jun 28, 2012 11:04 am Post subject:

I've never really considered us as having rate bands as such, but of course we do, I suppose.

We have an obvious peak period (earlyish July to end of August) and some close to peak (eg. Easter), and a definite off-peak (short breaks in December and January, outside of Xmas/New Year). The rest is a whole spectrum!

I essentially try to take in a number of factors when pricing:

- whether the same weeks were let/not let last year

- if let, when were they let? (if a long way in advance, was I maybe too cheap? if at the very last minute, do I perhaps need to consider lowering the rate to be sure of the booking next time around?)

- what other similar properties in the area are also charging (since I'm not aware of anything that's an obvious direct comparison, that's not always easy)

So ultimately, I'll end up with quite a mish-mash of prices - £690, £720, £750, £790, etc. Like you say, this can be come a real pain for when you come to list your rates on all the various listing sites and it's then that I sometimes find myself applying rate bands that possibly don't truly exist.

Let's say for instance I have two months of rates at a combination of £690 and £720. For the sake of ease and simplicity (as it can be quite a time-consuming process), I might just put on a listing site that the rate is £720 right across the 2-month period. This isn't ideal but it means that one or two might get a pleasant surprise when they find it is £30 cheaper than they thought. Of course, it might also mean some people don't enquire because it's just out of budget. But, because of the time-consuming nature of adding all the rates to all the different listing sites, this is what I'll sometimes do (particularly if it's a minor listing that I don't have high hopes for Wink

).
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Greenbarn · Posted: Tue Jul 03, 2012 8:48 am Post subject:

An update on this - just been researching an agency that specialises in the local(ish) area and they seem to have about 14 different bands.

Just to be clear, in case I wasn't before, this is looking at the number of different rates over a 12 month period for any one property.

I might see if I can cut and paste the dates they use for comment - might be interesting.
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