Rad Revenue and Data Management with Brad | Ep. 04

The Motel 6 is going for $400 a night. Why is my 2 bedroom only $600 per night? They allow flexible cancellation, built on last minute single night stays, and have no extra fees on top of rate. They also are playing a different game. They possibly could be down to 2 rooms left so they are probably guarding those remaining rooms so they only get booked at a very high Nightly Rate.

It does not work in the opposite direction for example the Super 8 in Jackson Hole is only $90 during Christmas week, but owners are not asking to trim the rates for those weeks.

Stricter cancellation policies attract better guests and save time. If someone can front $5k today for a stay nine months from now and they cannot 100% back out that is most likely going to be a more predictable guest. Free cancellations take time away from agents to actively book new reservations if they are spending their time processing refunds and cancellations. It also provides more stability to property owners.

If a guest cannot filter for an amenity online or if it does not pop well in a photo it is almost impossible to expect a guest to pay more for it. High thread count sheets or high end appliances will not move the needle on bookings the same way adding a hot tub or upgrading to a king bed does.

Our approach is to sell more nights when the rates are at their highest and be more agnostic on the individual rate by day. It is more successful to be greedy about your results for a whole season or year than to get caught in a few peak rates over a holiday period.