Would you give a discount?

How to communicate with your potential renters - how to turn site visitors into enquiries, and enquiries into bookings.
susanj
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Would you give a discount?

Post by susanj »

A guest that has been at our place twice before emailed me and said that many of their favorite places there Give a discount to returning guests. Then he added, " With that said, We'd like to book again for this Labor Day weekend ." Would you give a discount?
onestep
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Post by onestep »

We've decided that, when we are in the lucky position of having returning guests, we probably will give them a discount - or a special welcome hamper. Not quite sure which yet! It depends how you feel about giving discounts in general; a lot of LMH'ers are against it. It also depends on how much you were thinking of discounting by. It might be that if you know this guest well, you can come up with some other sweetener (tickets for some local thing?) that would make it more personal, for perhaps not as much of a financial cost?
tavi
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Post by tavi »

Now the guest has opened this particular dialogue I think I would think very hard about trying to give a positive response - of some kind.

A guest who's been twice before is a valuable commodity. I think I would try to see this as an opportunity to create more feel good factor in the guest. (might they recommend you to others?)

Depends what's appropriate to you, and to them - a voucher for a dinner out or an extra charge that you could waive?

With my repeat guests so far I don't ask for a damage deposit, and propose what feels like a good rate compared to what they paid last time....without looking ridiculous.

I think offering discounts to returning guests is quite different to discounting to a bargain hunter in an email....who may never even go on to book.
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Moliere
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Post by Moliere »

We had one couple who came six years on the trot. They never asked for a discount, but I guessed they were a bit hard up and so started my lowest prices in their favourite week!

Nice folk, he was in a wheelchair, and they just had a lovely break and left the place spotless. What more do you want?

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susanj
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Post by susanj »

Well, I was thinking of taking off $50-$100 on a stay that would cost them $1125 normally. Or leave a $50 gift card for a restaurant. There will be 5 adults. No dog or I'd maybe skip the dog fee.
Beachcondo
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Post by Beachcondo »

Hi sjde!

You could also say that we waive the cleaning fee for returning guests. I think that sounds a bit more "personal" than just an XX amount. Or make a point out of offering them last years prices.

I see that the VRBO bear has stayed with you. How did that work? Did you sign up for it or did they contact you? Did they pay full price?
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susanj
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Post by susanj »

Last year's prices are the same as this year's prices. Except we did add a cleaning fee this year.

The VRBO bear contacted us. It went well. But full price?! Hah! The bear doesn't pay full price-more like just a cleaning fee.
Essar
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Post by Essar »

We have had a Repeat Guests policy ever since we started, it has paid dividends as we now have 30% of bookings from repeat guests this year. We also have two bookings from recommendations.

Our policy is:
Repeat Guest Discount: -£10 per night (no maximum).
Book within 28-days of departure: Next seasons dates at this seasons rates.
Deposit: £100 (usually 25% MIN £100).
Security Deposit: Nil (usually £100 per week or part).

We also have "Introduce A Friend" scheme: £10 per night credit towards a future stay if you introduce a friend for each night they book. So, if a friend books a 3-night short break the introducer gets a £30 credit towards a future stay.

We just had a repeat guest book for 12-nights, she got £120 discount for being a repeat customer and £40 discount for IAF (her Auntie), total £160 off. Obviously, there are rules we apply like , can't be used with other offers and discounts, friends can't be from the original guest group, etc.

I do include an uplift in my tariff for such things, so I am always happy when we get repeats. So much easier to deal with, no surprises and the properties always left as you want them.
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cambalala
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Post by cambalala »

I offer repeat guests 10 perc off if they book again. I send all my guests an email a few days after their stay asking for a TA review as well as informing them of my repeat guest email policy. We often get repeat guests this way.
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barbersdrove
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Post by barbersdrove »

i wondered about doing this then decided to go back over my bookings to see if anyone who had been one year had been put off booking the following year by our price increases. As far as i could tell not one of the enquiries had decided not to book because the cost had gone up.

I have 7 weeks booked out this summer to repeat bookers who when they have asked about availability I have explained the increase to. They have all booked. So, I'm wondering if people are doing themselves out of money by offering these discounts. Had I done so I would have been making less profit in a time when costs have been spiraling.
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Happylady
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Post by Happylady »

We give 10% discount to returning guests. So far 25% of 2012 guests are returning this year. Reckon it cuts my advertising costs plus it cuts down the risk on who you're letting your place out to.

Don't know if you have any add on costs for the rental if you won't want to give a discount you could always let guest have add on for free or put in a complimentary welcome pack if like us you don't usually provide this.
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barbersdrove
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Post by barbersdrove »

I don't really have add ons, everything offered is included in the price and that includes 2 pages of items available for loan for babies, toddlers, disabled, elderly etc. But costs in general have gone up, in particular heating and lighting.

Many of our lets are in the winter months and I could charge extra then and reduce in the summer but whilst I am still getting bookings throughout the year at the one flat cost I think i will continue that way though i realise i may have to rethink if the summer prices do seem to be becoming a reason not to book. at the moment, touch wood the bookings don't seem to be being affected by the increase.
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Beachcondo
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Post by Beachcondo »

sjde wrote:! Hah! The bear doesn't pay full price-more like just a cleaning fee.
Yeah, I suspected that it's just VRBO's staff members way of getting a really cheap holiday.

Did it make any difference to your inquiries though?
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Post by Unibond3 »

Hi,

It's great to see the range of incentives offered to repeat guests and also heed the view that you need to know that in offering an incentive you can do so because it enables you t make savings elsewhere such as in advertising.

I'd like to ask if owners get repeat visits because they have a pro-active policy of mailing (or e-mailing) previous bookers on their database to persuade them to return, (and whether it is appropriate to include an incentive in the mailshot), or whether they have a reactive approach because repeat bookings just happen!
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greenfrog
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Post by greenfrog »

I also offer 10 pc off to returning guests. I indicate that in my follow-up email after their stay. (unless I don't want them back, which almost never happens!)

I now have about 6 regulars and several other guests who have sent friends so I think it's well worth it. (My repeat/referral business now accounts for 20-30% of all bookings.)

Regular guests are worth cultivating, whether it's with a discount or a nice gesture like a food hamper / champagne.
I had returnees who came as sweethearts, returned for their honeymoon and again for their 1st anniversary. I spoiled them with champagne and chocolates! In my mind, their guest review was worth gold!

When guests start calling it their "second home" you know they're telling all their friends about it, and that's valuable publicity. When they inquire, they're ready to book so it takes less time. And they leave it cleaner because they want to come back. And once you know them, it's easier to deal with last-minute crises - I suddenly had to go away when recent returnees were coming but I knew them well enough and they knew the place well enough for me to just leave a key with a neighbour for them.
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