Why you need to have a competitive pricing strategy – a year in advance!

Did you know that if you don’t have competitive rates set up at least 12 months in advance, you could be missing out on hundreds of potential guests?

Three reasons you need to plan ahead

  1. To make sure you have the best rates available for the early-bookers. More and more people are booking their getaways earlier. However, if you only have one flat rate available, they may not be getting your most competitive price and may book elsewhere.
  2. To maintain the best possible position of the travel websites. When you list your property on websites like Expedia, Laterooms.com, TripAdvisor and Booking.com, you still have to ensure that you perform well on them. The channel listing will favour properties that have planned their rates well in advance and offer the most competitive pricing.
  3. To make sure you never miss an opportunity to sell competitively. When you have an event near your property, you can afford to adjust your rates, to maximise profit during that time. Remember guests will be booking earlier than usual, to get the best deal.

 

So, how do you make sure that your rates are competitive?

When demand is higher, you can simply increase your rate. Obviously, how much you increase this will depend on your demand, location and competition.

When should I adjust my rates?

  • Events: Raise your prices when you know a local event is happening, for example a big sporting event or festival, but don’t go overboard – you still need to be competitive!
  • Weekend vs weekday rates: If Friday and Saturday are busier days, your price should reflect this.
  • Sunday night: If this is one of your quieter days you should consider lowering your rate.
  • Seasons: You need to work out when your high and low seasons are and adjust prices accordingly. For example, if you’re in a seaside town you will probably find July and August a lot busier than November and December. Remember to plan around school holidays too.

What about when demand is lower?

When demand is lower, you have to work harder to fill those beds! So you can offer promotions. When you offer a discounted rate, it may seem like you’re losing money but you’re actually influencing the customer to book with you by giving them a good deal. It’s best to see it less as a discount and more of a tool to maximise your revenue on every room, every night. For example:

  • Offer cheaper rates for longer stay’s to encourage guests to stay for an extra night or longer.
  • Give early bird discounts to get confirmed bookings into the diary in advance.
  • If you usually have a 2- or 3-night minimum stay, still offer a one-night price but at a higher rate .
  • Offer single occupancy ratesso you can still sell an available double to a single guest rather than have it remain empty.
  • Fully refundabledeals sell your rooms more quickly but non-refundable deals are great to lock in bookings.

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.

Check out our infographic with our top tips: 

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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.

Why you need to have a competitive pricing strategy – a year in advance!

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