What rate structure is for you?

 

Here’s a summary of your different rate structure options.

Daily (most popular and flexible!)

Daily rates are the quickest and most flexible way of adding your rates. We highly recommended setting up your accommodation using daily rates.

Weekly and Short Breaks 

A traditional way of setting rates. Weekly and short breaks are rigid set date ranges.

Please note: When choosing which rates to use, choose either daily or weekly and short breaks. 

 

Daily 

The daily pricing structure means that you charge a basic cost per night for the accommodation on offer. You can restrict the minimum number of nights a customer can book i.e. for a certain date range you can choose to make a customer book two nights or more. This will make doing the cleaning and changeover more worth your while.

You can also restrict what days a customer can arrive on. This means that you can choose to have a day or two where you don’t have to worry about people arriving on site.

Advantages

  • You have completely flexible pricing where you can accommodate any length of stay.
  • Simple and easy to display in a price list.
  • You can have restrictions all year or for only certain times of the year.
  • You can choose to create a cascading tariff which will make it cheaper per night to book a longer length of stay. This will encourage longer breaks.
  • You can offer discounts where you get a certain number of nights for the price of less.
  • Most sales channels, eg. Pitch Up, Booking.com and Airbnb, operate on a daily pricing mechanism.

Disadvantages

  • You can’t limit the maximum length of stay. You may have people booking for 8,9, 10 nights etc… therefore you could have departures on odd days.

Daily pricing cannot overlap with another pricing structure. If you want to have a combination of weekly prices for the high season and daily prices for the low season you have to make sure that the dates do not overlap.

 

 

Cascading rates are a special kind of daily rate which allows you to charge a different price during the same date range depending on the customer’s length of stay.  

Cascading rates only work when you’re charging less on a daily basis as the length of stay increases.

Are you thinking of using a cascading tariff? Click here to find out how to do this.

 

Weekly

Weekly prices sell 7 day chunks for a fixed price. Traditionally this pricing structure is used in self-catering businesses who have one changeover day (usually a Friday or a Saturday).

Advantages

  • Structured pricing means that you know exactly when people are arriving and departing.
  • Simple and easy to understand for the customer.
  • Can be used alongside short break rates.

Disadvantages

  • Customers can only book 7 day blocks. Either 7, 14,21 or 28 days in a row. Shorter or longer stays are not catered for.
  • One or two changeover days at the most.
  • Cannot be used in conjunction with daily rates.
  • Sales channels like Airbnb and Booking.com do not recognise weekly pricing.

 

Short Breaks

Short breaks allow you to sell up to six nights for a fixed price. They are intended to offer flexibility and cater for the growing popularity of shorter stays.

You can choose to operate short breaks in a number of different ways. A traditional example is a 4 day break from a Monday and a three day break from a Friday.

Advantages

  • Provide a set short stay with a guaranteed changeover day.
  • Can be used alongside weekly prices
  • Can be set up for any day of the week.

Disadvantages

  • Can only sell up to six nights.
  • You must program in each individual break. If you sell all combinations of short breaks (2,3,4,5 and 6 night stays) you will have to program in 5 different options for each week of the year.
  • Time consuming to setup.
  • Cannot combine a short break with another short break to create an alternative length of stay.
  • Sales channels like Airbnb and Booking.com do not recognise short break pricing.

 

 

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