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| Nov 17, 2009 1:30 pm |
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re: re: We are increasing our Hotel rates. Is it brave or foolish ? |
Randy DeVaul
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I agree with Sudha. Previous guests won't likely come back with doubling the price; new guests will hesitate as you already have a reputation in that area for a particular pricing. You will almost have to change your name or market yourself as the 'new' destination to attract a different client level - you will no longer appeal to your previous client level.
Is this the right timing for you to increase? Great question. I believe you are good for an increase; you are NOT good for doubling or tripling your rate without re-shaping your 'brand.' And doing that will cost more initially than the benefit of the rate increase.
So - strategically - you are probably ok to make a 15-20% rate increase for the short term where you can begin to SHOW to your guests that you are worth a great value. If you go higher than that, you will need a long-term strategy to re-brand and attract a different type of client. Don't try to compete with the newer hotels (and rates) unless you have at least a matching name recognition or EXCEPTIONAL service.
Good luck in your endeavors and challenges. RDPrivate Reply to Randy DeVaul (new win) |
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