Real Estate Investor · Atlanta, GA · Member since 2016 · 286 posts · 67 votes
Hi, BP STR investors
We've recently switched things up with our pricing strategy. Essentially, we're now offering a 35% discount that's spread evenly across the nearest 14 days, starting from today. It seems working. We figured it made sense to sell off unsold rooms for less, especially considering they're worth $0 if they sit empty.
However, we have run into a bit of a snag with this approach. Since our pricing is more attractive for rooms that are close to the current date, we've seen a spike in same-day check-ins and last-minute bookings. This is causing some stress for our cleaning crews. It seems like guests who book last minute also tend to have more issues too.
So, do you have any suggestions on how we can deal with these problems? Perhaps there are other pricing strategies out there that we could try to boost our performance? Most of our properties are located near major highways and metropolitan areas.
I offer discounts but not that steep in the short term. My guess is you've priced it too low and it's resulting in a non-optimal guest. You have to raise your price, and sometimes know it's going to sit empty.
If your two-pronged approach is causing stress for your cleaners from these problematic guests, it’s actually not working. Try using only one approach, either lower price or no same day check-ins.
If your two-pronged approach is causing stress for your cleaners from these problematic guests, it’s actually not working. Try using only one approach, either lower price or no same day check-ins.
We have never tried no same-day checkins. According to your experience, how much does it impact your business?
Hey @Leon Lee, this is just the nature of the business and guests. Last minute booking guests usually are more difficult and messier.
What about finding a extra cleaning crew or 2 to backup your primary cleaners?
Thanks for your suggestion. Since it is really difficult finding a reliable and high-quality cleaning crew, we prioritize our best team and offer them as much work as they want. It seems that discounted last-minute bookings tend to attract problematic guests, which can be a bigger concern than stressing out our cleaning crew. We're curious about other pricing strategies that fellow hosts have used to strike the right balance. Thanks again for your input!
I offer discounts but not that steep in the short term. My guess is you've priced it too low and it's resulting in a non-optimal guest. You have to raise your price, and sometimes know it's going to sit empty.
If your two-pronged approach is causing stress for your cleaners from these problematic guests, it’s actually not working. Try using only one approach, either lower price or no same day check-ins.
We have never tried no same-day checkins. According to your experience, how much does it impact your business?
Thanks
It's usually invites trouble and a different kind of usual guest. Don't get me wrong, it can work in some markets and type of place. I've personally tried booking same day as a guest if we're on the road and hotels aren't nearby or convenient and it's been fine accommodations. But not for a STR. For same day, if you want it worth the trouble, increase your price instead of lowering it. Or keep it empty. You have to ask your cleaners how they feel about it too. You want to keep a good cleaning crew happy and not want to quit working for you.
I never accept same-day bookings. It stresses ME out. I do have 2 cleaning crews in rotation at all times, though. I get them from nextdoor.com, where local people recommend local people.