I often see comments about aren’t we doing well, we’re fully booked for the year and it’s only mid-Feb.
Call me a cynic but my first thought is “then you’re too cheap”.
I don’t mean to be negative or to undermine your achievement, not at all. I just want you to think about “are you too cheap?”
So many times I say that we could all reach 100% occupancy if we charged peanuts. Peanuts does not mean a healthy profit per booking and a decent profit at the end of the year.
I want you to maximise your income for the least amount of effort and being fully booked doesn’t always mean that. To do this, it’s about earning as much as you can from each booking, rather than just getting low value, after low value bookings. I want each of your bookings to count! Each of your bookings to comfortably fill your purse and make the time and effort worthwhile.
If for example I priced my quality 2 bed holiday cottage at the same rate as an average looking one, everything else being equal, guests would choose me. They can see by the way my property is presented, by the gorgeous images on my website, by the guest reviews that mention how helpful I am, how every detail is thought of, how it has all the mod cons and character features, how it’s quiet village location ensures a restful holiday. It’s very clear it’s a quality holiday rental.
If they could get all that for the same price as an average holiday rental, then of course they’d choose me. And I’d be 100% booked.
But because of the added value I provide, the extra time I put into my business. The care I have for my guest’s holiday experience. The love of the local area that I so widely share, don’t I deserve to earn more?
Yes, but aren’t you turning people away if you charge too much?
The opposite; you are drawing in and targeting those people who appreciate your additional touches and all your extra efforts. Those people who your holiday rental is an ideal fit for. You put all your marketing time and attention on communicating with those people.
Often owners know they’re too cheap but are scared to put up prices. What if we don’t get any bookings? Better to keep things as they are. But is it? Don’t you deserve to earn more from all the hard work you put into getting your place guest-ready?
Two low value bookings can bring in the same revenue as one higher value booking. Yet you have to do twice as much work and you have twice the changeover costs.
It’s basic market forces at work.
If you can sell out of any product at the price you set, then you’re in a position to charge more for that product. As long as it’s worth it. And your quality holiday rental, certainly is. It’s worth more, to the right guests for you.
Charge what your holiday rental is worth, target these ideal guests that will appreciate you and then go out and get fully booked!