Some of you Alpine owners who post on Snowheads may have noticed this current 'discussion'
http://snowheads.com/ski-forum/viewtopi ... highlight=
(I think non-members can view this thread).
I probably would not have boasted this fact on a ski forum (sorry Skimottaret), where people are parting with their hard earned dosh for what can be an expensive holiday. However, I made what I thought were some valid points, increased occupancy during school holidays leading to increased changeover and laundry charges, as well as taking supply and demand into consideration.
How do others work out their charges, is it solely supply and demand, or do you take other things into account when setting your rental rates?
School Holiday pricing
-
Hells Bells
- Posts: 13173
- Joined: Sat Apr 30, 2005 8:42 am
- Location: French Alps
- Contact:
I shall have to go back to watching snowheads - I did abandon it because nothing much was going on!
We have just completely revamped our pricing structure. We work on supply and demand only.
(Different numbers of people occupying our apartments at different times have no influence as our base price is for 2 people and we charge extra for each person above that. This seems to go down really well with the guests and it is a contribution towards extra laundry and utility bills and tourist tax.)
Yes, we charge extra for the peak periods. How can you not do so? But for those people who don't like paying peak period rates in school holidays, at least we have plenty of school holiday weeks at normal rate.
So this is how we did it: we now have a peak rate and a normal rate. The peak rate applies at the times of year when we could let every apartment 20 times over: Christmas & New Year, main skiing weeks in February and main summer holiday weeks.
Christmas starts (for us) on 20th December because so many families want to come out early enough to go to the Christmas markets, we would rather make sure they get the apartments. And that gives us occupancy of about 34% in December. The period continues past New Year until the main German schools go back - can be any time in the first 7 days or so in January.
The February peak period is the German carnival week plus the main Dutch and UK half terms. Next year, the last 2 coincide, cutting the peak from 3 weeks to 2.
Summer peak period is last week in July and 1st 3 weeks in August.
So, no peak rates for Easter or any other half term and not even for all of the summer holiday period.
We abandonned having a low season rate a couple of years ago. If people want to come in the low season, that is fine, but it is extra cost (heating and hot water) and, as we like to be here when guests are here, we want to have some time when we can go on holiday ourselves.
We have just completely revamped our pricing structure. We work on supply and demand only.
(Different numbers of people occupying our apartments at different times have no influence as our base price is for 2 people and we charge extra for each person above that. This seems to go down really well with the guests and it is a contribution towards extra laundry and utility bills and tourist tax.)
Yes, we charge extra for the peak periods. How can you not do so? But for those people who don't like paying peak period rates in school holidays, at least we have plenty of school holiday weeks at normal rate.
So this is how we did it: we now have a peak rate and a normal rate. The peak rate applies at the times of year when we could let every apartment 20 times over: Christmas & New Year, main skiing weeks in February and main summer holiday weeks.
Christmas starts (for us) on 20th December because so many families want to come out early enough to go to the Christmas markets, we would rather make sure they get the apartments. And that gives us occupancy of about 34% in December. The period continues past New Year until the main German schools go back - can be any time in the first 7 days or so in January.
The February peak period is the German carnival week plus the main Dutch and UK half terms. Next year, the last 2 coincide, cutting the peak from 3 weeks to 2.
Summer peak period is last week in July and 1st 3 weeks in August.
So, no peak rates for Easter or any other half term and not even for all of the summer holiday period.
We abandonned having a low season rate a couple of years ago. If people want to come in the low season, that is fine, but it is extra cost (heating and hot water) and, as we like to be here when guests are here, we want to have some time when we can go on holiday ourselves.
I weighed in with some caution there, it's a sensitive subject as you say!
Interesting to see this as I'm looking at our pricing for next year at the moment. We have quite varied bands of pricing based pretty much purely on supply and demand.
EG All of July and August is summer peak, but it's still less pricey than winter low season,. Even though Chamonix is actually busier in summer than winter, a lot of those are day trips, walkers and campers, so there's still plenty of accomodation. Having said that we are booking well for summer, so far!
Interesting to see this as I'm looking at our pricing for next year at the moment. We have quite varied bands of pricing based pretty much purely on supply and demand.
EG All of July and August is summer peak, but it's still less pricey than winter low season,. Even though Chamonix is actually busier in summer than winter, a lot of those are day trips, walkers and campers, so there's still plenty of accomodation. Having said that we are booking well for summer, so far!
Chalet la Foret, Chamonix
-
Hells Bells
- Posts: 13173
- Joined: Sat Apr 30, 2005 8:42 am
- Location: French Alps
- Contact:
Martha, very sensitive, and I did wince when I read the post.I don't think it is a good idea to brag to the punters how much you can get away with charging. Still, we all learn from experience as they say. In some ways we are quite similar to you in that we have a thriving summer market,which some ski property owners can only dream of, but I can't charge anything like our winter prices. I can just about get away with my peak summer price being around the same as my low winter one, possibly because of the swimming pool. I was misunderstood slighty, as my observation on occupancy was just that, an observation that I had more guests in peak weeks, and higher laundry charges (although now they are being done in the apartment machine at no extra charge, as it can be washed while the apartment is being cleaned.)
Yes, that seemed to get straightened out ok which was good. I understood what you were saying! 
I am sure the pool makes a huge difference for you - a massive plus! I can count the number of places with pools here on my fingers.
I see that the half terms all fall together this year, so I might keep that week at peak price, but I think we may make the rest of February a bit less.
Interesting to read your approach, Margaret, which clearly works well for you. I can see that this is another area where perhaps being on site makes a difference, too.
I am sure the pool makes a huge difference for you - a massive plus! I can count the number of places with pools here on my fingers.
I see that the half terms all fall together this year, so I might keep that week at peak price, but I think we may make the rest of February a bit less.
Interesting to read your approach, Margaret, which clearly works well for you. I can see that this is another area where perhaps being on site makes a difference, too.
Chalet la Foret, Chamonix