As a bed and breakfast operator, you’ll want to create a rate schedule that allows your rates to fluctuate based on demand factors like:
Ultimately, you need to be updating your rates because demand for your rooms fluctuate as a result of a variety of different factors.
When your rooms are in high demand during the busy travel season in your region, you can charge more for your rooms and increase your profits.
When there are less travelers in your area due to poor weather or a slow travel season, you can lower your rates in order to entice people to book with you.
Effective revenue management is how you will maintain profitability throughout the entire year. If you do not update your rates and change them based on the demand at your bed and breakfast, you will not be able to remain competitive in the local or global market.
More importantly, you won’t be able to continue to increase your revenue over time, which is the only thing that will allow you to grow your business into everything you hoped it would be.
Increase your rates when your rooms are in demand, both with local travelers and visitors from abroad. To know when it’s appropriate to increase your rates, assess your demand periods.
For example, most travel destinations have busy seasons and slow seasons. If your bed and breakfast is located in a ski town, you can increase your rates during the winter months.
If it’s a particularly popular weekend destination, you can establish higher rates for Friday, Saturday and Sunday nights.
While you may notice that there are certain trends that take place every year, you also will want to consider special events that might impact demand at your hotel.
If a new festival is being planned for your town, you can assume that more people will be in town hoping to book a room. You can raise your rates during this time period to boost your profits.
When it comes to determining the actual rate for your hotel rooms, look to your competitors for guidance.
Compare bed and breakfast properties and other boutique hotels that offer similar amenities, and see what they are charging per night. On average, it’s best to compare your rates with at least 5 different competitors in the area.
To actually update your room rates, use modern technology like Little Hotelier. As your rates fluctuate, your website as well as your OTAs will be instantly updated with the most relevant availability and room rates. See how it works with our on-demand demo videos.
Or, to find out more information about revenue management, download our free eBook:
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