Appropriate response

[wallypott]

Last year this lady enquired about booking for two weeks and I refused because I wanted to hold out for a better price. I never managed to book one of the two weeks she wanted so ended up regretting it, and had to reduce the price for both as it was. This is a reservation for the 6 bedroom beach house, whereas she would be just having the downstairs of the house, so a reduction is reasonable but the week she wants includes a bank holdiay weekend, which I had planned to let at 800€.

we are still interested in your lovely holiday-house, this time from the 24.05.2012 to the 03.06.2012, for two adults, two children and one dog. If the house is still free during this time, can you make me please a good offer?

So what is my response, my feeling is that it is way to early to be giving reductions, but I have already regretted refusing her once.

[Nemo]

But you were in year one weren't you wally? How far in advance did she enquire before? That is, how long did you have to fill the week that you subsequently didn't fill?

May next year is a long way away, and a six bed house for four people sounds a luxury indeed! Bank holiday weekend as well...I would hold my nerve but that's easy to say!

I am getting several enquiries now, including a two week one for Christmas, that with hindsight I should have priced more competitively but you can never know until they don't book!

[Jenny C]

Perhaps something along the lines of "We normally only offer discounts for last minute bookings, but in view of the reduced cleaning costs by your use of only the downstairs of the accommodation, we would be able to make a reduction of xxx".

And maybe an added incentive by suggesting a further discount if they were to enjoy the property and rebook for the following year? Sounds as though they are very keen on it so would be good to get the business!

[Normandie]

Perhaps something along the lines of "We normally only offer discounts for last minute bookings, but in view of the reduced cleaning costs by your use of only the downstairs of the accommodation, we would be able to make a reduction of xxx".

If you say this (and I think it is a good suggestion) do add the rider that this reduced price is dependent on the booking being for X people only and the ground floor only. If more people are added to the booking closer to the date with additional rooms being required, then the price will increase (or return to) XXX.

[Mouse]

She's asking for an offer Wally so maybe she's regretting being so descriptive about what she wanted to pay and missed out.

I wouldn't go too cheap. I would say what the going rate is and then as you say offer a reduction based on the reduced numbers.
I wouldn't mention any further reductions (and wouldn't give any for repeat business if already reduced).

It may be that from her point of view you set your stall out last year by not reducing, so you could be in a stronger position where she expects less.
Alternatively you could always leave her with the 'if this isn't satisfactory to you then do come back to me within 2/3/4 (whatever suits) weeks of the date of your holiday when I will be in a position to negotiate a last minute price.

Mouse
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[kendalcottages]

Personally, I wouldn't offer a reduction on your usual rates this far in advance...

[The Olive Grove]

Personally, I wouldn't offer a reduction on your usual rates this far in advance...

Me neither, but it is out of peak season so it depends on how confident she is in booking it. We struggle to get anything out of July and August where we are, but since we have already reduced shoulder prices I won't be offering any further discounts.

[la vache!]

800€ for a bank holiday weekend?? I've just way undersold Ascension in that case, 550€ inclusing the bloody bed linen in the big house (same price as 2 years ago).

[Mouse]

LV with what you offer and the rate you book out the peak weeks I really do think you can take a chance and put your prices up.

If the peak don't sell at the increased price (which I'm sure they will) then you can always drop them nearer the time...I know you've mentioned often about getting lots of late enquiries even though you're booked.

Wally - another thing...you could ask for 100% upfront if you do discount a little more than you want. That way you'd have the money in the bank early which always helps the cashflow

Mouse
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[wallypott]

LV - The limited bank holidays we had last year all went at 700€ and that's without the swimming pool. I was thinking 800 for this one as its for the end of May 25 - 29. If it doesn't sell at that price I can reduce it to 700, but seriously the demand seems to be vast and people kept on asking.

Ascension is potentially a 5 day weekend if you include the wednesday 16, which most people with kids could. I definitely won't let that one go for less than 800. Sorry I think you have undersold yourself there.

I have proposed different dates for her, 28 or 29 May for 10 days at 800, or the period she wants at 1200. I have also said she can wait and see and that if the period is still available two weeks before hand I will then reduce further.

I explained that I would not reduce bank holidays due to the high demand.

[pepsipuss]

My family informs me that half term is a week later next year for most schools because of the Jubilee (now first week of June) so this may influence your thinking. I don't know if that means that there is no bank holiday on the last Monday in May. However I do know that it looks as if Easyjet have not yet cottonned on as the first week of June flights were cheaper than they expected!!

[la vache!]

LV - The limited bank holidays we had last year all went at 700€ and that's without the swimming pool. I was thinking 800 for this one as its for the end of May 25 - 29. If it doesn't sell at that price I can reduce it to 700, but seriously the demand seems to be vast and people kept on asking.

Ascension is potentially a 5 day weekend if you include the wednesday 16, which most people with kids could. I definitely won't let that one go for less than 800. Sorry I think you have undersold yourself there.

Yes, I have MUG written across my forehead. If I haven't received the contract and deposit by tomorrow (as stated on the contract) I'm going to cancel the booking.
Mouse, the reason I'm not putting up my prices (or by very little) in Peak is that my properties aren't worth it. I know there is a huge demand and people would pay the prices if they are desperate, but I don't want people staying here and thinking they've been ripped off (and then possibly posting a review to that effect).

[Hells Bells]

LV, but our costs are spiralling all of the time, and you are supposed to be making a living from this. I can't see why anyone would be ripped off staying at your properties, even with a price rise

[kendalcottages]

I know you know this LV but if the demand exceeds the supply, then the business-minded solution would be to raise the price...

http://en.wikipedia.org/wiki/Supply_and_demand

[pepsipuss]

I know how it feels LV. I have kept my weekly price in August to just below €2000 for three years because I can't bring myself to go over that barrier, although everyone who knows the house says it can stand it. I may bite the bullet and try out 2100 and see if anything happens - if not I will go back down. On the other hand, I could start to enforce the extra €50 per week for the use of each of the camp beds for children which brings the total capacity up to 10, which I have not yet done.