To make the most out of your business, you need to have a clear pricing strategy for the next 24 months. Which is simple to do when you know what your busiest and quietest periods are.
We recently analysed the data for 2015 to see what the average occupancy was for our 16,000-plus customers. And while the results can vary in certain locations owing to big events, we got a clear view of when the highest and lowest demand was. Using this information, we can show how you can plan your pricing strategy and adjust your rates accordingly.
Rather than having one flat rate throughout the year, or just split into two seasons, you can clearly see that you can be much more flexible with your pricing.
As you can see from the average check-ins per month, the difference between January and August is huge- so you need to take advantage of the high demand months and keep your rates far more competitive when there is lower demand.
And it’s not just each month that differs, each day of the week does too! Judging by the average demand each week, maybe you need to take a look at your rate plan to make sure you’re taking advantage of those Friday and Saturday bookings and lowering your rate or offering a special deal on Sunday bookings. If you’re struggling to attract guests on Sunday – you need to lower the rate enough to get their attention.
Top tip: Offering a super saver Sunday deal may entice Saturday guests to book an extra night with you, so that they can use the room and facilities for an additional day.
We would suggest a minimum of three seasons:
- High season- April to September
- Mid-season- October to December
- Low season- January to March
So what do you do with this information?
When demand is higher, you can simply increase your rate. Obviously, how much you increase this will depend on your demand, location and competition. For a tailored report on how much you should be adjusting your rates see our personal expert service. However, when demand is lower it is slightly trickier as you have to work harder to fill those beds. Click here to see some simple ways you can use promotions and discounts to entice those potential guests.
Best practices for your pricing strategy
- Have a non-refundable rate: We discovered that when our customers have both a non-refundable rate and a refundable rate option, 1 in 3 will book the non–refundable option for the lower price.
- Offer a cheaper Room only rate as well as a Bed and Breakfast, many guests will click on your property because of the lower price and then add breakfast on at the booking page.
- Set your up your rates 24 months in advance to catch the early bookers.
- Do not prevent the one-night bookers by imposing a ‘minimum length of stay’ restriction. Just increase your rates for the one night only option. See more about this here.
- Make sure you offer single occupancy rates.
Adjusting your rates according to demand is the best way to ensure that you are making the most of your revenue and occupancy throughout the year. And we can help! With eviivo suite you can manage your rates, pricing and restrictions on every site you list on in one place. Click here to find out more.