Price Rises for 2012?

[Mouse]

The guest was shocked that the other gite owner could change his mind re rental cost in a very short space of time (whilst they were in contact with one another by email).

I would be shocked at that too, and would never change a price when in discussion. But if you only have 1 or 2 weeks left and you're confident they'll be in demand then why not try get a better price? After all the budget airlines do that all the time; those that get in earlier get the better deals

Of course if demand is low, or you're in a very competitive market, then of course it won't work.

Mouse
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[charles cawley]

I agree, changing prices on the hoof can really put people off.

On the other hand, however much people are upset there's no rule that says you cannot change prices as and when. It might be an idea to add the proviso that advertised prices can change 'as and when'.

UK inflation looks to be creeping up to 5%; if it hits 10%, half year price changes may be necessary with a restriction on how far in advance bookings can be made.

In the last great inflation in the UK in the '70s, many people had to change strategies. For instance, car repair people no longer quoted prices to insurance companies, but quoted rates with components priced 'at the rates applicable on the date of work undertaken'. This practice has, I am told, remained since then.

It would be interesting to hear from anyone who knew what holiday lets did about setting rates in those days.

[domino]

I agree Mouse, theres something quite distasteful about what happened. The time frame was under 24 hours. I dont think we should antagonise potential guests in this way.

[Tizfata]

Holding 2011 prices just now, but I can change them overnight - upwards if we book more quickly that I expect or downwards if bookings become sparse.

That's the beauty of the web thingy.

Well, this is valid all over the world except in Italy
I have to decide the prices for 2012 before the end of September and write them to my province. Should I change my mind, I can do that again in February. Oh, these people still live in 1920...

[Windy]

When I first read Windy's 'garage forecourt' strategy

ROFL - I should perhaps point out that my prices are not constantly changing.

I take bookings anything between 18 months and 18 minutes before the holiday. During that period I carefully monitor the percentage of my target that I have booked by the end of each month. At certain points I review my pricing. If my bookings are coming in more significantly more quickly than I expect I would feel reasonably confident in changing the pricing structure (perhaps only for certain periods). The converse applies to except that i have a floor that I never go below.

An extreme example of the theory NOT being applied is somebody I know who is cock-a-hoop because he is already fully booked for Summer next year. I wouldn't be so happy! In his situation after the 3rd or 4th peak week went a year in advance I would have increased my prices. If that meant that by New Year I hadn't sold any more I could always reduce them again, but the chances are I would have made a lot more money for the rest of the weeks.

It's simple demand forecasting against a pattern. It's not rocket science and if you are not doing it you are missing a trick IMHO.

PS for absolute clarity I am NOT talking about changing the price upwards after someone has already enquired!

[Hells Bells]

I see where you are coming from now Windy. I've been almost fully booked for January for weeks now, and I was wondering if I could have raised my prices by more than I did. All I have left for the month is 4 nights in mid-Jan. I regret accepting the 3 night short break now,as I've turned down several other enquiries for 7 nights. So difficult, as previous years have been filled with lots of short breaks. I've put it down to the economic climate. People are perhaps taking only one ski holiday, and making it a full week. January is the most economical time to ski, and the slopes are less crowded. I've had to turn away some regulars who ski 4 nights at the end of January as they were too slow to act on my email I sent in early August. Had they contacted me then, I would have provisionally booked their dates for them, as I know they would be coming.

[welshgirl]

Well, I've bitten the bullet and put my prices up. Not a set percentage, but I've looked at each season and gone for what I think I can get away with.

I can always lower them or offer deals later on.

Not sure I would be happy raising prices but I will see how quickly some of the peak weeks go.

My personal opinion is that the 'staycation' will be a short-lived love affair after the terrible weather we had this summer. People will forget about the ash-clouds and all the other reasons they decided to stay in the UK this year and there will be a rush for foreign holidays. Hoping though that the Olympics will bring tourists not just to London but further afield as well

I guess only time will tell ....

[Windy]

My personal opinion is that the 'staycation' will be a short-lived love affair after the terrible weather we had this summer

LOL - we have had terrible weather for the last FOUR years in the UK. Maybe people will wok on the basis that that can't go on for ever!