Raising rates for 2016?
Raising rates for 2016?
So we've had a couple of requests for 2016 now which were quite unexpected to be honest. Reading some previous posts I saw a lot of owners would review rates in the Autumn for the following year?
After some back and forth we've put our rates up by 10% across the board. Our short and week long off peak winter stays are up by 20% due to significant increased costs (moving more out to a cleaner and on-site meeter and greeter). These cover all the major listings sites. We're only increasing prices directly on our own site by 5% and 15% respectively. These rises are against a backdrop of:
- quite significant investment in the property this year (new downstairs shower room, external paint, new deck, imminent arrival of a log burner)
- we priced at the bottom end of properties nearby to kick-start the business in the knowledge we would be investing as per the above
Curious which way the wind if blowing for other owners at the moment?
After some back and forth we've put our rates up by 10% across the board. Our short and week long off peak winter stays are up by 20% due to significant increased costs (moving more out to a cleaner and on-site meeter and greeter). These cover all the major listings sites. We're only increasing prices directly on our own site by 5% and 15% respectively. These rises are against a backdrop of:
- quite significant investment in the property this year (new downstairs shower room, external paint, new deck, imminent arrival of a log burner)
- we priced at the bottom end of properties nearby to kick-start the business in the knowledge we would be investing as per the above
Curious which way the wind if blowing for other owners at the moment?
Yes, definitely try the higher prices.
I put mine up between 5 and 10% each year. I get lots of repeats, I make sure that expectations are met or exceeded, and that value for money is there.
My guests can stay in this area for less if they wish but some of them are now on their 4th visit so they must be happy with the deal they're getting.
Putting prices up is not necessarily about greed - it means I can afford to have spaces between bookings, I can afford to use vacant days to keep maintenance and cleaning standards really high, I can be more flexible as to check-in and check-out times which is very much appreciated by guests. It's a win-win.
Yes, lots of 2016 enquiries and bookings - which is quite unusual.
I put mine up between 5 and 10% each year. I get lots of repeats, I make sure that expectations are met or exceeded, and that value for money is there.
My guests can stay in this area for less if they wish but some of them are now on their 4th visit so they must be happy with the deal they're getting.
Putting prices up is not necessarily about greed - it means I can afford to have spaces between bookings, I can afford to use vacant days to keep maintenance and cleaning standards really high, I can be more flexible as to check-in and check-out times which is very much appreciated by guests. It's a win-win.
Yes, lots of 2016 enquiries and bookings - which is quite unusual.
Yes as each year goes by, my guests are booking further and further ahead. I used to be quite happy to start booking the year out in January, now my most recent guests booked next years summer holiday whilst still on this years holiday!
I raise my rates every year; my costs go up every year too. This way I only make small regular increases which are easy for regulars to accept.
I raise my rates every year; my costs go up every year too. This way I only make small regular increases which are easy for regulars to accept.
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- charles cawley
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The large majority of our owners have hardly changed rates for 4 years with the exception of new cottages ratcheting up rates to meet demand as their feedback rolls in. (Counties on the Welsh borders).
Certain niches have managed to raise rates more than others. Sleep 10 and above have been in a better position than sleep 2s
Certain niches have managed to raise rates more than others. Sleep 10 and above have been in a better position than sleep 2s
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Advice about holiday letting
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We, and friends in the same business round here got a rush of encore the end of the ski season for the following year. None of them turned into bookings and we came to the conclusion that they were all from people hoping we hadn't thought about next year's pricing (we had) and would therefore get a cheap deal. Now the autumn's approaching, we're having another rush of enquiries, but this time they're looking far more promising, so if you find the same, don't worry... your pricing isn't the problem, the right people will come along later wishing to book your property.
I always publish 2-years ahead and work on a 5% increase on my lowest weekly rate. My other date range rates are then calculated on a fixed percentage of the lowest weekly rate. This has the effect of increasing peak rates at a higher rate than the lowest rate. I've done it this way for 6-years. I will also adjust the base rates each year to reflect any changes in the local competition; I always aim to be the top end for the same property types.
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"There is no human problem which could not be solved if people would simply do as I advise"
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Good point. We actively market that we avoid same day turn arounds and allow largely total flexibility on check-in / check-out times but it's quite a tough / subtle thing to market.tavi wrote: Putting prices up is not necessarily about greed - it means I can afford to have spaces between bookings, I can afford to use vacant days to keep maintenance and cleaning standards really high, I can be more flexible as to check-in and check-out times which is very much appreciated by guests. It's a win-win.
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Over the past 4-5 years we've increased prices by about 2-3% each year. By last October we were practically sold out for summer 2015 in one particular cottage so I've really bumped the prices up for 2016 (rather embarrassed to say between 10-15% for some weeks). But it's already getting booked for summer 2016.
On the other hand our bigger cottage is not doing so well but there is a lot more competition for that size in the local area in the last two years.
On the other hand our bigger cottage is not doing so well but there is a lot more competition for that size in the local area in the last two years.
5-10% is pretty impressive! The past number of years I have gone for a nominal 3%- this year I've kept prices the same for the smaller cottages but increased our two large cottages by 3%. The reason being that the large cottages were proving excellent value for a 3 nights break but a lot of work if 8 or 9 people were in them. Prices all published and already taking quite a few bookings particularly from people staying now. I think jumping too much year to year could put off regulars. However I personally would rather put prices up by at least 5% and offer discounts for regulars/early bookers etc. the Boss (wife) doesn't agree!!
Jake
Character Farm Cottages
Character Farm Cottages
A guest called the other day to ask a few questions and mentioned in passing that "it's great your changeover day is flexible...not everyone's is". He's now booked Obviously that's not the ONLY reason he booked but it helped!Robin @ One Spring wrote:Good point. We actively market that we avoid same day turn arounds and allow largely total flexibility on check-in / check-out times but it's quite a tough / subtle thing to market.tavi wrote: Putting prices up is not necessarily about greed - it means I can afford to have spaces between bookings, I can afford to use vacant days to keep maintenance and cleaning standards really high, I can be more flexible as to check-in and check-out times which is very much appreciated by guests. It's a win-win.
I've had the same comments tavi. I have no fixed changeover day as I appreciate that people will be looking for the best flight deals depending upon their local airport. I don't mind having the odd unbooked day or two as it does take some of the pressure off my property managers who otherwise are coping with stressful back-to-back same day changeovers throughout the summer. I wouldn't take a booking which left me with a hole of four to six days though.
Our prices have been pretty static for years but will be increasing by 8% for next year based on upgrading - AC and solar pool. I find it really tricky to call the optimum price for our property - what is clearly too much and therefore we would loose bookings. with the lack of anything scientific I have just scoured other sites looking for similar properties and made a comparison.
Ianthy
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