Will guests think they're being ripped off?

How to communicate with your potential renters - how to turn site visitors into enquiries, and enquiries into bookings.
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ginelli
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Will guests think they're being ripped off?

Post by ginelli »

Hi everyone,

This has been my first season of renting out and things have gone well.

I've started getting a few enquiries for 2008 and I'm feeling a little confused.

I plan on putting my prices up next year by up to 100pounds a week. I explain this to the enquirer amd give the price but I can't help feel I'm going about this in a clumsy matter.

What is a good way on going about quoting your prices (esp if higher than previous year) for the following year? When is a good month to change the prices from the current season to the next one?

If anyone has cracked this, I would be very interested to hear how you go about it.

Many thanks,

g
De l'audace, encore de l'audace, et toujours de l'audace (George-Jacques Danton)

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Musetta
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Post by Musetta »

thanks for asking...I was going to post a simmilar question!

I was thinking of just changing the rates on my website and have 2007 rates listed, as well as 2008 maybe?? I feel too feel odd about that though. On vrbo, I can list them as that as well..don't know about the other sites where I need to only put in one price...probably still list the lower until fall (but add the new rates somewhere on the listing?)
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greenfrog
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Post by greenfrog »

I've only been in the rental business for the past 15 months so I can only tell you what I've done so far - and that may change as I get older and wiser! :wink:

I post the rates for the current year but as my Christmas/New Year rates are higher, I put them up to as a way of easing people into next year's rates (and while I consider whether or not to raise the rates. I did last year because of paypal costs but not sure I will for next year. I think there's another thread somewhere about rent hikes and when/how to do it.).

Anyone who books this year for next gets the place at this year's price - last year I stuck to that til about November. And i make sure to let them know they're getting this deal.

I know what you mean about not wanting to post next year's rates too but if you offer a "book now at this year's prices" deal then it could work to your advantage as people see how much they can save by confirming now.

However, I have a city apartment, not a country/seaside villa so my rentals follow a different pattern. They're highest in summer but I do have some through winter as well and I'm always more inclined to offer a discount on out-of-summer bookings.

Don't know if that helps!
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Mouse
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Post by Mouse »

I always display my new rates around the beginning of July, as by that time I'm usually fully booked and also the budget airlines release their flights for the follwoing summer around the end of July/beginning of August - so families are usually looking to book then.

One problem I have tho' is passing the increase on to this years guests who want to re-book. I always feel a little awkward about it...as if we're trying to get more money from them (which of course we are...but you know what I mean!)
Any tips on how best to do it would be gratefully accepted :D

Last year I only passed on 50% of the increase, and probably will have to do that this year as well if anyone re-books.
I think in 2008 my rates will have reached a level I'm happy with unless the market here moves significantly.

Mouse
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Post by guest 4 »

Hi Mouse,

I think everyone expects prices to go up year on year.

If they were booking through a tour company they would find the same.

I think we should offer a discount to returners, I usually offer around 10%. If you know they were good guests and caused no problems it is worth renting to them and not taking the risk on the ones you don't know.

Ruth
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Post by Guest3 »

We normally put our prices up on the 1st September of every year. Whenever we have enquiries for the following year (and I have had a few for 2008 already!) in my responding email I state that I am giving them a quote with the current years tariff which I will honour if they book before 1st September.
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Ju
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Post by Ju »

greenfrog wrote: Anyone who books this year for next gets the place at this year's price - last year I stuck to that til about November. And i make sure to let them know they're getting this deal.
We did this last year, but ended up booking all our peak weeks before our cut off date, thus loosing us all the money we would have gained by the price increase. We are not making the same mistake this year. I simply tell people the price, if they want to book they do, if not, never mind there is plenty of time left to find other renters.

I find shoulder season price rises more difficult than peak season ones!

Ju
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Giddy Goat
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Post by Giddy Goat »

There has been loads of discussion here about offering discount to returners for the following year in high season and also about offering discount in high season to early bookers. The received wisdom was that if you know you get booked very easily in high season anyway, there is little point in offering a discount to these two categories - except for shoulder and out of season periods. In my second year of letting, I had offered 5% discount to returning guests in high season - now, it will only be offered out of high season. Had I increased next year's rates more drastically I might have felt less comfortable about this decision, but my rates have only been increased by £50 pw for 2008 in the summer, and are still very fair. In any event, not all those returning guests may have been ideal, who's to say at this point?! Some are delightful people and give you great feedback but break loads of stuff and stain things and don't leave the house in quite the state you'd have hoped for - and others are less appreciative and friendly, but take care of the house better - so in a way, unless they've respected your property, do you really want to encourage the former category back - er, in high season? (I might have to lower my standards for those harder to fill slots,:wink:)

It's Friday night and I'm a bit squiffed. Cheersh.
Last edited by Giddy Goat on Mon Jul 16, 2007 9:21 pm, edited 2 times in total.
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Post by Guest3 »

We did this last year, but ended up booking all our peak weeks before our cut off date, thus loosing us all the money we would have gained by the price increase.
See where you are coming from Ju...but I suppose it all depends on the area and the 'supply and demand' factor.
I have taken less bookings this year than the other 3 years :( ....so that tells me that there are more properties on the holiday rental market for people to choose from in my area. For me it's 'in for a penny in for a pound'...if I can book all my peak weeks for 2008 at 2007 rental prices (before the cut-off date of 1st September) then I'm a very happy Bagpuss! :D

I'd rather people book straight away than 'humming and arring' and waiting for my price increase only to decide after the wait that they are going somewhere cheaper.
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Giddy Goat
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Post by Giddy Goat »

Yes, that's true BP - different markets, and at present the numbers of people who are hearing about our region and seeking to visit are on the increase, but there's a shortage of properties to let of a family size I think.
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Fil
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Post by Fil »

If you don't want to include what is left of 2007 in the new prices, I think it is ok to publish both prices (2207 and 2008) on the listing sites. But they should be published and not come to the enquirers knowledge by email.
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ginelli
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Post by ginelli »

BagPuss wrote:We normally put our prices up on the 1st September of every year.
BG, does that mean that you end up doing 2 tariff tables or does it mean you would show 2007 prices for Sep 1st to Dec and then show your 2008 prices for Jan - Sep?. God, I feel like a nerd!

Many thanks,

gx
De l'audace, encore de l'audace, et toujours de l'audace (George-Jacques Danton)

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Mouse
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Post by Mouse »

Gino

if you take a look at this link you will see how I've done it;

http://www.holidaylettings.co.uk/rental ... jose/13370

Mouse
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Post by Guest3 »

BG, does that mean that you end up doing 2 tariff tables or does it mean you would show 2007 prices for Sep 1st to Dec and then show your 2008 prices for Jan - Sep?.
Gino, we only have the one tariff table. We keep the current tariff displayed on all the rental listing sites. On the 1st September all the tariffs are changed. So for example our current tariff for November 2007 is £795...on the first of September the November tariff for 2007 will show at £830 (5% increase) and so on for the remainder of 2007. However as I said, I am in two minds whether to make a price increase for 2008...will just 'test the water' to see how many 2008 bookings I get before 1st September!
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Lesblancs
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Post by Lesblancs »

GG - It's Friday night and I'm a bit squiffed. Cheersh.
Some 'wicked grass' no doubt 8)

Fil - I love that pretty little bird, but how did you manage to get that plaster cast on its leg?

Bobby
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