An owner we know in Florida sets her rates at the start of the year, and when shes taken 2 or 3 bookings, she ups the rate again
featheronline I did just that when I started renting out our place. We got to the marketplace late (April) and working on the 'need to have' 10weeks rental, I checked all my competitors prices and quoted lower. Then as the bookings came in I upped the price on the available weeks.
Last year I did the same & raised the remaining weeks by £200 as they were in July - I was fully booked by April.
I think its difficult in your first year to have that confidence in your rental place and also to judge what bookings might be like. We'd taken out a huge mortgage that needed paying - so I took a risk pricing lower, thinking I'd rather have 'some' money coming in than none
Its all down to our personal situation...if there's only running costs to recoup then that's a different situation than if a mortgage needs to be repaid
thank you! I felt the same when I first saw your Virginia and Edinburgh properties!
Gino, I do not see why you should not adjust the prices. The people who paid less are not going to complain for sure and the people who will contact you in future will do that aware of what your advertised rates are.
We rent a property in Portugal - second year and have never thought of offering a discount for 2 weeks and nor has anyone ever asked in relation to more than one week's booking. The only annoying thing is when people want to rent our place (3 bedrooms) for 2 or 3 people and seem to expect some sort of discount for underoccupancy. My view on that is go find a property the right size!
However, funnily enough, we decided to go to France for our holiday this year and to try out one of the properties on the site we rent on ourselves (always handy to exchange views etc and see what other peeps' places are like). We were fully prepared to pay full price for 2 weeks (AND we'll be underoccupying) but lo and behold we were offered a 20% discount if we booked 2 weeks and paid the full amount up front. Well, never one to look a gift horse in the mouth - we were delighted but will have a chat with the owners when we get out there as to whether or not they really need to do this. Sorry if you're any of the peeps posting here.......if this sounds too familiar.
Also we recently had an enquiry for a long weekend at short notice for the end of this month. When we worked out the rate pro rata it came to about £150 and we decided that what with maid service to make the beds and clean afterwards etc, plus electricity, logs etc etc - it just wasn't worth it for that price. So we asked £250. The peeps said it was more than they had planned on paying and declined. However, 2 days later they came back to us and said they couldn't see anything else they liked as much and they understood our reasons for the pricing and they booked and paid! So you just never can tell.
What I want to know is how to get May and June booked - good golfing weather out there but last year and this those months haven't proven very popular.
Can't do "witty" and the "truth may be too much for you...."
I don't apologise for sometimes offering discounts for underoccupancy (2 people in a house sleeping 6 for example) and sometimes for 2 week bookings. I don't offer a huge discount, but having been running the business for 5 years I have a good idea of when to offer and when not to offer them. I'm quite happy with my bookings this year and a few of them have probably been clinched on the basis of even a small discount such as 4%.
I only have 8 weeks free between the 3 houses I rent out from the end of March to mid September. It is very difficult when you start out and don't know how well your advertising will work or the pattern of bookings you can expect.
I'm the same as La Vache (mooo!) in that I do offer a small discount on 2-week bookings - 5%. Strictly speaking, I don't think I really need to do this, but hey, it adds up to a lot of karma!!
I obviously mention this discount on the website, and it is partly to stall those who would otherwise ask for more..it seems to be working, because this year I have had no requests for more generous percentages.
I do think there are cultural differences involved. Rare are the French guests who would come for 2 weeks without asking for a discount..it's just the done thing - the request is usually presented with some tact and there is no offence taken on either side - does that tie in with what those of you who rent to French customers experience?
Rocket Rab wrote:Strictly speaking, I don't think I really need to do this, but hey, it adds up to a lot of karma!!
It certainly does! If I have underoccupancy in a house, there is less use of utilities, considerably less laundry for me to do and the house is generally cleaner, so a discount is appropriate and highly appreciated as RR says. Goodwill counts for a lot, especially when you live next door to the guests for the duration of their holiday.
RR, I rent to the French a lot, but have never had a high season booking as the UK guests always book first - and out of season it is rare to get a 2 week booking, so I've never been asked for a disount! I've got a lot of French repeats this year and have given a discount on some of those bookings, but not much as the shoulder season lets don't give me a high enough profit margin to be too generous!
All the different experiences are absolutely fascinating aren't they? That's why I enjoy coming on here - even though I hadn't posted before tonight (or if i had it was so long ago I'd forgotten ). I really loved the idea of the day on the boat as a selling point. Partidge, maybe you and I and HelenB's aunt should throw in a round of golf on the courses we're next to/on.....
PS - did I put that quote with my signature or are we allocated something automatically. If it was me i've got no recollection whatsoever - so that'd be another senior moment!!
Can't do "witty" and the "truth may be too much for you...."
The only annoying thing is when people want to rent our place (3 bedrooms) for 2 or 3 people and seem to expect some sort of discount for underoccupancy. My view on that is go find a property the right size!
My very first ever enquiry was for 2 people (my apt is 3 bed, 3 bath) for 4 weeks. I was charging £350 pw, so offered £1200, around 15% disc and he said, there are lots cheaper and there are only 2 of us. I didn't reply but really wanted to say 'well go and rent one of those then' He must have sent the word round about me because I've never had a winter or a golf enquiry since
An owner we know in Florida sets her rates at the start of the year, and when shes taken 2 or 3 bookings, she ups the rate again
featheronline I did just that when I started renting out our place. We got to the marketplace late (April) and working on the 'need to have' 10weeks rental, I checked all my competitors prices and quoted lower. Then as the bookings came in I upped the price on the available weeks.
Last year I did the same & raised the remaining weeks by £200 as they were in July - I was fully booked by April.
I think its difficult in your first year to have that confidence in your rental place and also to judge what bookings might be like. We'd taken out a huge mortgage that needed paying - so I took a risk pricing lower, thinking I'd rather have 'some' money coming in than none
Its all down to our personal situation...if there's only running costs to recoup then that's a different situation than if a mortgage needs to be repaid
Mouse[/code]
We're now coming to the end of our third year, and I still haven't got the courage to do that!!!
If I have underoccupancy in a house, there is less use of utilities, considerably less laundry for me to do and the house is generally cleaner, so a discount is appropriate and highly appreciated
It has surprised me how many guests who don't really need our 4-bedroomed gite actually ask for it in preference. We had two lots of two couples and two parents and two small children last year and the trend has continued this year. I suppose it's a bit like booking the penthouse in the hotel - it's what some people do when money isn't a problem.
So, even if we were into discounting - which we're not - it wouldn't seem appropriate with such people. They might even feel insulted - sort of reverse psychology.
It's good to see more and more people coming forward with their opinions on this.
The 5% advertised discount for 2 week bookings is more food for thought.
I'm still trying to approach the general idea to this thread from a sales point of view: trying to explore the motivations people have.
I'm not a marketing or salesperson and have never worked in the field. I have become intrigued by the subject however, albeit for reactive reasons. I hate the way so much advertising picks on our fears and insecurities nowadays in order to clinch a sale. You only have to watch TV for an evening to know what I mean.
Getting into renting out houses, the advertising and the selling that goes with it, it has always been one of my fears that I would go down the same road. I ended up reading Vance Packard's "Hidden Persuaders" which tries to tackle the same subject. It is an encouraging read, well for me anyway. One of my aims in this venture, which I hope is going to be a big part of my life, is to try and find that delicate balance of selling but still respecting my guests.
De l'audace, encore de l'audace, et toujours de l'audace (George-Jacques Danton)
Jimbo wrote:
It has surprised me how many guests who don't really need our 4-bedroomed gite actually ask for it in preference.
SNAAAAAPP!! Amazing, isn't it? I very very rarely receive a booking from UK guests requiring all 4 bedrooms and 2 bathrooms - the usual configuration is 4 or 5 people.
I'm testing new approaches each year (this year it's 'cleaning' !). After reading everyone's comments, I know what I will probably target next year - yep, the 2-week discounts.....kut the karma and stash the cash!! (Maybe...not sure the cash is worth more than the goodwill...mmm)
The French seem to be more, err, economical: they are unlikely to spend money on a house that sleeps 8 if they do not actually require that amount of space...
). I really loved the idea of the day on the boat as a selling point. Partidge, maybe you and I and HelenB's aunt should throw in a round of golf on the courses we're next to/on..... 
He must have sent the word round about me because I've never had a winter or a golf enquiry since 
