Deciding on a tariff.
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Pricing a room can be difficult to start with.
Price the room lower rather than higher as it is easier to put up your prices rather than have to suffer loss of face and drop them.
Have a look at the tariffs charged by local hospitality operators and get to know the owners at the same time. These are useful connections to form for the future when any of you are fully booked and you can recommend each other.
Search the internet to see the standard of room, packages offered and tariff. Be realistic about what you are offering and where you are located when you are looking for equivalence. A standard room will sell for a lot more in a city suburb rather than one in the bush.
Types of tariff:
Nightly
- Double e.g. $110
- Single e.g. $90
- Family e.g. $140
Weekly
- Consider a discount in off peak periods
- One night for free
Packages
- Honeymooners weekend package
- Special events e.g. Thai cooking weekend, wine appreciation etc.
Specials
- Midweek 2 -3 nights at lower rates to attract people at quiet times
- Short term stays of 4 weeks or more usually attract a lower rate
To discount or not to discount?
Some people love a bargain and will try for further discounts all the time. You have to decide how to play this. At times there is a pregnant pause on the other end of the telephone line when you state your tariff. You have to decide whether to jump in and offer a discount. Whether you decide to or not, do not do it too quickly. You are not a mind reader and the person on the other end might be trying to remember their holiday dates or whether to bring Grandma. If the tone is still one of hesitation after a reasonable amount of time (I cannot allocate seconds to this, you will know with practice) you may offer a discount.
A number of B & B owners believe that you should never offer a discount as the word gets around and it does not stop. I have never really found that as I only offer the discount after the pregnant pause and I am a believer in the fact that your accommodation only has a 24 hour shelf life and when that is gone there is no way to get it back; as long as costs are covered and there is some element of profit, a little revenue is better than none at all.