Are you sure the price is right? How to devise a competitive pricing strategy

eviivo - Running a profitable BB

When you’re offering a unique experience to your guests, you can make the deal sound even sweeter with competitive prices. Striking the balance between low and high can be tricky, but this is a sure-fire way to make your B&B a really attractive option for customers.

Keep it low enough that you can beat your competitors, but high enough that you’ll make a profit and do justice to the quality of your service. Bearing in mind the time of year and what else is on the market, will help you come up with a pricing structure that will appeal to any visitor!

Where to pitch yourself

The prices you set will depend on what is on offer – if you’ve got a mouth-watering menu and a luxury décor, you can justify asking for more. However, you’ve also got to consider your competitors, and how your business fits in the market. Value is key, and customers are generally willing to pay a higher rate if they feel they are getting more for their money.  All those little touches like good services, star rating, and breakfast options add up and validate your price. We know you offer something different, so the trick is to figure out how much is just right!

Weekday and weekend rates / Sunday savings

Typically, the majority of business comes on Fridays and Saturdays, but there are easy ways of making your weekday bookings appeal to customers. Lower prices are always ideal for filling your rooms, and a cheaper room is so much better than an empty one!

Since the 9-5 routine keeps most people under 60 busy during the week, you’re more likely to get retired folks staying at this time, so keep that in mind when you decide on your prices. Perhaps you can put together a deal for the older clientele to really sweeten the deal. Remember that business guests may also contribute to your mid-week bookings, so you can find something suitable for them, too.

Times they are a changing… So should your prices!

Any guest house or B&B should be like a Four Seasons pizza: very doughy and packed full of cheese. (Wait, what?)

No, what we mean is, your business should be just as tempting whichever season guests choose to visit it. There are a few tactics you can go for in terms of seasonal pricing, including offering deals during peak times to give people an extra reason to pick your B&B over anywhere else.

Find unique ways of promoting your business off season: do you have special events in the area like mountain biking trails or fishing that may be attractive off season?  You may also want to take the opportunity to do any redecorating during these times, and make the most of having fewer people to look after!

Want to find out more about carrying out a successful renovation? Click here to read our article! 

Holiday and special event rates

Take advantage of all the things your local area has to offer to by staying on top of nearby events – such as flower shows, theatre events, festivals or fetés – and use them to fill your rooms. This will also help you plan your rates to benefit from peaks in demand. If guests are coming from far and wide to enjoy the music/views/entertainment, then give them a reason to choose your B&B.

Single occupancy and group rates

Having a flexible pricing plan for your rooms makes you more appealing to all types of guests. For example, a family attending a wedding may be looking for value for money and somewhere that they can all stay together, so a group rate is a great way to attract them. Think about the rates you offer for guests under 18 too, especially if you have family-sized rooms available.  Alternatively, if you have a business person staying during the week, they’ll be specifically looking for a single occupancy rate and your rooms will appeal to them as well.

Would you like more expert advise? eviivo’s business advantage service will provide you with a pricing strategy that is not only bespoke for you but easy to implement. Contact 0800 422 0088 for more information or click here.

Using ‘minimum’ for maximum effect

no-vacanciesA simple way of filling some rooms mid-week and keeping a steady flow of customers is to encourage longer bookings. Why don’t you try implementing a ‘minimum stay’ requirement with a special offer, which may entice people to extend their stay over a few nights?

Small changes like this can give you back more time – with less paperwork checking in new customers, fewer replacement soaps to buy – making you more relaxed while your rooms fill up! Plus, people love a holiday, so encouraging them to stay for longer is a win-win situation. The longer they stay, the more opportunity you have to show off how cracking your business and local area are, and how charming you and your staff can be. Just think of the glowing reviews that will earn you online – a no-brainer, right?

At the end of their stay customers should be queuing to leave their review, but here’s how you can encourage them to do so if they need a little nudge: How to gain great guests reviews.

Are you sure the price is right?  How to devise a competitive pricing strategy

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eviivo is a suite of products and services, which are designed to help hotel, guest house and B&B managers run their business online in an easy and effective manner.

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