We have always had two or three rental prospects a year that want a 20% or 30% discount from our published rates. But in the last couple of months it seems like half of our callers are demanding discounts, usually in the 40% to 50% range. Had one this week that wanted 60% off. The only discount we offer is 10% to returning guests. So far we have resisted giving any discounts to the bargain hunters. Is this recession related of just our luck of the draw?What is your experience with bargain hunters and how do you handle it?
M Gravlee
Akumal Mexico House for Rent Free Travel Articles Vacation & Travel Links
I'd say it depends on your occupancy rates from a historical basis, and what you will accept if you have vacancies. In our neck of the woods we know we will have 100% occupancy in the 10 high season weeks, even if the bookings are left until the last minute. The other aspect is cost. In our low season, particularly in winter there is a high cost of bringing the heat up in the house and hot tub so it is not cost effective to take a heavily discounted booking. Personally, I am averse to bargain hunters and although we may occasionally offer special deals, will not succumb to any requests for lower rates.
Heather
Visit Cottage Blogger for news, views and comment for vacation rental owners
I think it is related to the economy. I have received many calls from bargain hunters in the past 5-6 months. Even travelers that are not affected by the economy are trying to put a squeeze on vacation home owners to lower their prices (probably because they assume that some vacation home owners may be struggling during this time).
For example, I have had a guest that for the past 2 years rented one of my properties for $15,000/week, but this year he said that he wanted to pay only $7,000 because he heard that real estate prices dropped in the Florida area and that there were many other available rentals in the area. I gave him just a $2,000 discount because it was the third time in a row that he booked my property. But, I would have not done so if it was a new guest because there are always risks involved when renting your property.
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Bargain hunters want to feel like they have worked a real deal. Here on the Northern Oregon Coast our high season is approximately May through Sept.. During this time there are no discounts because we fill up so quickly. Off season is a different story. This year we had no bookings or inquiries coming in by mid October. I did quite a bit of surfing VRBO and some other local sites to make our rates competitve. Thanks to the economy we had to cut rates 60%, and usually waive the cleaning fee (we do the cleaning ourselves). It is really kind of like fishing for us. Once we get an inquiry for the discounted rate of $100.00 a night we then offer to waive the cleaning fee to seal the deal. Although we are taking a loss, we are staying full most week-ends and some week day streches as well. We are even getting bookings for January,February, and March which is usually our slowest time of the year. Our advice is find away to make the bargain hunters feel like they are getting a bargain. If you don't have a cleaning fee normally add one and then drop it when you are talking with a perspective guest. Cast out and just reel them in. It's just like fishing
Not only are Bargain Hunters coming out in droves, They are getting smarter! If they can't get the deal they are looking for they may just invite two other families to fit the Vacation rental with-in their budget. All I can say is make sure you interview carefully, or put up with a party in your home.
Scott Vhttp://www.activerenter.com - a Blog that offers advice on maximizing the investment of your Vacation Rental Property
The recession hasen't really brought an increase in bargain hunters to us. I think it really depends more on what area you're renting to and during what season. We rent in Rio de Janerio and right now New Years is so packed that we really can't make exceptions for bargain hunters. I think they probably know that too.
Luxury Rio de Janeiro vacation rental apartments.http://www.rentinrio.com