Pricing for short breaks

[browning12]

I wanted to pick peoples brains on the above topic. We have a holiday cottage which we advertise ourselves as well as through a letting agency. For the last 3 years we have used the following pricing structure for short breaks:

3 nights = 66%
4 nights = 75%
5 nights = 85%
6 nights = 90%

We have just discovered that our letting agency has the following structure:

3 nights = 70%
4 nights = 80%
5 nights = 90%
6 nights = 95%

It might not seem a lot to only charge 4-5% more, however as people are being ever so careful with their money and with a peak rate week (our highest this year was £425), it can make a difference.

I just wondered what structure others use. I would also say that so far our prices have always mirrored those of our letting agency because we've found it to be easier. We also are not sure that we want to be knowingly undercutting our agency - we already feel that we have got more bookings this year directly than they have got for us and we don't want to give them any reason to complain to us or threaten to drop us (as they organise the cleaning for us).

What do others think? Thank you.

[greenbarncottages]

Our structure is fairly simple; either a 3 night weekend or a 4 night midweek at 70% of full rate, unless that dips below the minimum that we think is worthwhile. Anything longer is full rate, anything less is still 70% (which then brings up the issue of guests assuming you can operate by letting 2 nights at 2/7 of a full week - duh! Bite tongue and explain that the overheads structure is totally different from a hotel or B&B, and there's some very nice ones nearby which we're happy to recommend if they're only looking for one or two nights.)

Hadn't considered adding additional rates for 5 or 6 days (or to put it another way, offering a discount when our only saving is the extra day's energy bill, and we've then blown the possibility of using the days to sell another short break). Looks like a bit of a slippery slope.

[Andrew Clay]

You need to talk and be honest with your letting agency. The last thing you want is for the agency to find out the pricing difference when a customer asks why they're more expensive than going direct to you. I don't think many agencies would allow this as they'd be losing commission. As for the pricing structure, you go for what is most profitable for you - letting it yourself gives you the advantage of being able to quickly adjust your prices according to demand.