Are you confusing your clients with too many rates?

The Quokka Online Booking System can handle an infinite number of rates and combinations of rates. For example for any given day, you could put in a a total of six rooms -- two at a time -- whose prices vary by five dollars. Our system would sell the cheapest rooms first until they are all used up. You could do this for every day of the year. But would you want to?

We created Offer Exceptions (see our What's New section for more info) to help reduce the work when inputting rates that vary due to special events or holidays. People expect there to be variations on Christmas, New Year's and Valentine's days. But when they can find multiple rates for regular days of the year on your site, in your booking engine and through third parties, confidence in your business starts to dwindle.

An industry on which you should not model your business is the airline industry. They managed to fragment their rates so badly that no one trusts that the rate they are being quoted is the best. When the Internet started to be a major source for travellers to buy tickets, the airlines reduced their travel agent costs by marketing to the traveller via the the Internet. Sadly this created even more "virtual" sales outlets and created even more pressure on airline fares.

The good news for the independent hotel business is that your product can be more easily differentiated than an airline seat. Not all hotels are the same. Therefore the expectation by the traveller that your price should be the same is less. For example, a competitor down the road has different views from his or her windows than you do. That alone can dictate a price difference. Seat 22C is the same as seat 11B on a plane to Toronto.

Are you worrying about price more than sending the message about your service and amenities? Are there too many outlets selling too many rates that vary by relatively insignificant amounts? Can a guest go to your web page and see consistent pricing as to what you have on other sites? Depending on your answers to these questions, it may be time to look at your rates, and determine if you have too much differentiation.

A Tangle
Do your customers know where you are going?

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