I am about to open up my calendar for 2012 and need to price the weeks. I have done well this year with bookings but still haven't broken even & I know that there will be some big maintenance costs next year.
I want to raise my prices but wondered what I could get away with? I obviously don't want to overprice and find myself stuck with empty weeks but on the other hand I filled my high season weeks quite easily for 2011.
I know with the economy struggling people are being very careful with their money and are on the look out for the cheap deals but if the Euro remains as strong will Britain be the place to holiday?
What is everyone else doing? Would love to know your thoughts.
WG
Price Rises for 2012?
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The Olive Grove
- Posts: 750
- Joined: Sun Mar 25, 2007 2:19 pm
We aren't in the UK, but have steadily raised our prices year on year, and always manage to fill peak July and August but struggle to get anything outside of these two months.
For next year we have again raised our peak season prices, but have actually reduced low and mid season to see if that helps bring in bookings for the shoulder months.
For next year we have again raised our peak season prices, but have actually reduced low and mid season to see if that helps bring in bookings for the shoulder months.
Holding 2011 prices for 2012. I've done well this year, better than 2010 and my best year to date but feel I can't increase further. I'm fortunate that my running costs are low and I have no mortgage, in fact my budgeted expenses for 2012 are already covered by forward bookings.
Some guests just need a sympathetic pat. On the head. With a hammer.
I will hold my prices for off and mid season and raise a little bit for July and August where I have no difficulty filling weeks and I haven't raised in 2 years.
I don't know why but my High season guests are more high maintenance and cost me more in work/time/money. Maybe it's their main holiday so they are much more demanding. That's not a reason to exploit them price wise, I will be adding on just a few percentage points.
I don't know why but my High season guests are more high maintenance and cost me more in work/time/money. Maybe it's their main holiday so they are much more demanding. That's not a reason to exploit them price wise, I will be adding on just a few percentage points.
We will raise prices for peak times/school holidays a little but keep the same as 2011 for off peak. Costs (petrol to do turnaround etc) have risen so need to raise a bit more next year. Also adding wifi so that is also extra cost.
Last edited by kg1 on Wed Sep 21, 2011 5:52 am, edited 1 time in total.
I've raised all prices for next year and it doesn't seem to have dented bookings (so far).
My rational is I can try it and if things start to slow then I can discount.
I raise them a little every year rather than a huge hike every couple of years, that way it's hardly noticable to a party of 8.
Mouse
x
My rational is I can try it and if things start to slow then I can discount.
I raise them a little every year rather than a huge hike every couple of years, that way it's hardly noticable to a party of 8.
Mouse
x
One martini, two martini, three martini floor!
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charles cawley
- Posts: 1205
- Joined: Tue Sep 21, 2010 1:53 pm
- Location: Herefordshire, Shropshire, Borders
None of us knows what the economy will do. We're advising most of our owners not to raise prices. The sound and good-to-high-quality cottages are trading well, but the moderate and lower quality ones in our area are suffering badly according to local contacts.
Three new high quality cottage members are in the process of ratchetting up prices following a formula designed to feel out the maximum rate the market will stand; these have not been counted. Trying to force cottages into rate bands not only upsets owners but reduces bookings.
Going in higher for next year, now, with what could be the mother of all economic bad news coming our way is a brave thing to do. Conjuring tricks with money are not the solution but most people and our politicians still seem to be clinging on to that myth trying to stall the day when bills have to be paid.
Politics aside, one thing is for certain, the economy is not going to get much better for some time and competition is very likely to become more intense as the phony economic recession ends.
Aside... if inflation stokes up as the UK suffered in the 1970s, (25%+) this will make setting rates a real headache.
It is horrid to be so gloomy. This is one area where I sincerely hope I am completely mistaken.
Three new high quality cottage members are in the process of ratchetting up prices following a formula designed to feel out the maximum rate the market will stand; these have not been counted. Trying to force cottages into rate bands not only upsets owners but reduces bookings.
Going in higher for next year, now, with what could be the mother of all economic bad news coming our way is a brave thing to do. Conjuring tricks with money are not the solution but most people and our politicians still seem to be clinging on to that myth trying to stall the day when bills have to be paid.
Politics aside, one thing is for certain, the economy is not going to get much better for some time and competition is very likely to become more intense as the phony economic recession ends.
Aside... if inflation stokes up as the UK suffered in the 1970s, (25%+) this will make setting rates a real headache.
It is horrid to be so gloomy. This is one area where I sincerely hope I am completely mistaken.
No web-site for now.
Advice about holiday letting
Advice about holiday letting
I can look at my PIMS booking system and see how many enquiries I had for particular periods.
I have gone for quite a hefty rise, £200, for the three remaining weeks between mid July to mid August, and the end of August is booked in the beach house, which was going to have been tricky. In the gites I have gone for just over a 10% rise for peak peak and have booked a couple of weeks at that price, so I think I might be finding the right rate there, next year will be our third summer with the gites and second with the beach house.
I suspect the beach house is probably the most expensive in the village, which is potentially worrying, but it also now has lots of good reviews and anyone rebooking from last year would get a 10% discount which would only mean a 20 quid rise for them - which amongst 12 will not be a tragedy!
However, shoulder season remains a complete mystery to me! Sometimes you cant even give it away!
I have gone for quite a hefty rise, £200, for the three remaining weeks between mid July to mid August, and the end of August is booked in the beach house, which was going to have been tricky. In the gites I have gone for just over a 10% rise for peak peak and have booked a couple of weeks at that price, so I think I might be finding the right rate there, next year will be our third summer with the gites and second with the beach house.
I suspect the beach house is probably the most expensive in the village, which is potentially worrying, but it also now has lots of good reviews and anyone rebooking from last year would get a 10% discount which would only mean a 20 quid rise for them - which amongst 12 will not be a tragedy!
However, shoulder season remains a complete mystery to me! Sometimes you cant even give it away!
2012
We've increased our rates for 2012 by 10% over the main holiday main & peak weeks, 20% for the Olympics month - which is inline with the booking agencies in this area. Although, we are offering a 10% early booking discount for this month until end of February. We've also included Wi-Fi within the holiday rental and that costs about £450 per property p.a.
We've booked 2-weeks in July with the new tariff so are still confident that this is the right strategy (could be just a fluke and we will have to massively discount!).
Bournemouth does not seem to have suffered much this year, all occupancy is up, hotels report high occupancy rates for the summer months and stronger bookings for 2012 than 2011. Could be the "staycation" effect.
We do seem to live in a bubble here, house prices are rising dramatically in the "exclusive parts" of both Bournemouth and Poole, other local areas seem to follow along nicely with strong growth. Building going on everywhere, old bungalows being levelled and replaced with a nice block of 8 to 20 flats - all with non-holiday rental clauses in the leases - smashing!. The crane must be national bird of Dorset.
On the downside the price of gas and electricity is flying out the window like the rest of the UK and because of this we've upped our winter rates by 15% to allow for this - and also because we thought they were a bit to low anyway.
We'll see how it goes, but it does give us scope to discount if necessary.
I must say I do worry about the economic news on the telly, I've stopped watching BBC News it drives me mad with all it's anti-government stance and gloomy outlook - "we're all doomed".
Steve
We've booked 2-weeks in July with the new tariff so are still confident that this is the right strategy (could be just a fluke and we will have to massively discount!).
Bournemouth does not seem to have suffered much this year, all occupancy is up, hotels report high occupancy rates for the summer months and stronger bookings for 2012 than 2011. Could be the "staycation" effect.
We do seem to live in a bubble here, house prices are rising dramatically in the "exclusive parts" of both Bournemouth and Poole, other local areas seem to follow along nicely with strong growth. Building going on everywhere, old bungalows being levelled and replaced with a nice block of 8 to 20 flats - all with non-holiday rental clauses in the leases - smashing!. The crane must be national bird of Dorset.
On the downside the price of gas and electricity is flying out the window like the rest of the UK and because of this we've upped our winter rates by 15% to allow for this - and also because we thought they were a bit to low anyway.
We'll see how it goes, but it does give us scope to discount if necessary.
I must say I do worry about the economic news on the telly, I've stopped watching BBC News it drives me mad with all it's anti-government stance and gloomy outlook - "we're all doomed".
Steve
"Write something, even if it's just a suicide note"
"There is no human problem which could not be solved if people would simply do as I advise"
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Real name: Steve
Gender: Male
"There is no human problem which could not be solved if people would simply do as I advise"
"As for my amnesia, I've had it as long as I can remember"
Real name: Steve
Gender: Male
Yes tehre is a lot of talk about falling back in to a recession...which infuriates me because we never came out of one! The news network seems to have set people up to think this recession would be a 6mth thing....that's a blip, not a recession.
Having said that the last 3 years have been tricky but this year, although tough to start, came through as one of the best for the island. Some villa owners suffered but across the entire tourist industry this year was far better for the island than last.
Whilst many people have lost jobs and are struggling, don't forget that the major expense for most, the mortgage, is at the lowest level for a long time...so some people do have money in their pockets, but I think they're being cautious with their money and perhaps cutting back a little and choosing cheaper (or better value) properties to rent rather than flashy villas to impress their mates.
Mouse
x
Having said that the last 3 years have been tricky but this year, although tough to start, came through as one of the best for the island. Some villa owners suffered but across the entire tourist industry this year was far better for the island than last.
Whilst many people have lost jobs and are struggling, don't forget that the major expense for most, the mortgage, is at the lowest level for a long time...so some people do have money in their pockets, but I think they're being cautious with their money and perhaps cutting back a little and choosing cheaper (or better value) properties to rent rather than flashy villas to impress their mates.
Mouse
x
One martini, two martini, three martini floor!
When I first read Windy's 'garage forecourt' strategy, it seemed rather odd but, the more I consider it, the more sense it seems to make. Quite why I should believe that rental prices ought to be firm and fixed for set periods, when pretty much everything else goes up and down (mostly up!), I'm no longer quite sure.Windy wrote: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.
Anybody see any disadvantages to Windy's deft footwork (apart from needing a good memory and careful records)?
Jim
No disadvantages at all Jimbo as far as I can see, and I've done a bit of price juggling myself at times. Sometimes I've hiked the price a £100 just so I can discount it by £100 (it works if you're getting lots of 'best offer' requests).
In better years I also would raise the price on the remaining weeks rather than discount them (followed the budget airlines on that one) and so sold them at a higher price to last minute bookers.
For us there are 3 booking periods; before xmas, Spring and then the last minuters so prices could shift depending on demand.
Mouse
x
In better years I also would raise the price on the remaining weeks rather than discount them (followed the budget airlines on that one) and so sold them at a higher price to last minute bookers.
For us there are 3 booking periods; before xmas, Spring and then the last minuters so prices could shift depending on demand.
Mouse
x
One martini, two martini, three martini floor!
A guest who booked (very last minute) with us this year did so partly because the other property he was interested became unaffordable due to the owner increasing his rental rates (also at the last minute).
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). It certainly lost the other owner the booking.
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). It certainly lost the other owner the booking.