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13/04/2008, 18:42 Russethouse Joined on 23/08/2004 Forum Moderator Posts 9,489 Re: Gite Bookings!! FWIW my opinion is that Gite holidays offer better value when funds are low - you ca cater for yourself, bring tinned food etc www.quimperclub.org 99    Report

13/04/2008, 19:19 NormanH Joined on 10/04/2008 Posts 179 Re: Gite Bookings!!  ltf wrote:  NormanH wrote: Surely the answer is to reduce prices 20% to allow for the low exchange rate. See: http://www.guardian.co.uk/business/2008/apr/10/currencies Great idea Norman! For those of us whose main income is from gites and live in France, do you think that our overheads, shopping and fuel bills etc. have also gone down 20%? Do you really think that we pluck our prices out of the air when we are pricing? A bit of tweaking may be necessary, but I doubt there are many people who run gites as a business who could  maintain their level of service to customers with a 20% reduction in income. But this is what is being asked of people on  a fixed income in sterling, such as Pensioners living in France. And surely there are very few overheads with Gites? The investment was in buying them, but the costs of staying in them is carried by the holidaymaker who has to buy their own food, pay the electricity etc. Isn't it better to accept a lower margin, but keep up the level of bookings?    Report

13/04/2008, 19:22 cooperlola Joined on 05/05/2006 72 - Sarthe - home of les 24 heures du Mans Posts 6,285 Re: Gite Bookings!!  NormanH wrote:  ltf wrote:  NormanH wrote: Surely the answer is to reduce prices 20% to allow for the low exchange rate. See: http://www.guardian.co.uk/business/2008/apr/10/currencies Great idea Norman! For those of us whose main income is from gites and live in France, do you think that our overheads, shopping and fuel bills etc. have also gone down 20%? Do you really think that we pluck our prices out of the air when we are pricing? A bit of tweaking may be necessary, but I doubt there are many people who run gites as a business who could  maintain their level of service to customers with a 20% reduction in income. But this is what is being asked of people on  a fixed income in sterling, such as Pensioners living in France. And surely there are very few overheads with Gites? The investment was in buying them, but the costs of staying in them is carried by the holidaymaker who has to buy their own food, pay the electricity etc. Isn't it better to accept a lower margin, but keep up the level of bookings? Years ago I worked in the hotel business.  If the rooms weren't full as the high season approached, then the prices were cut until somebody booked one. Ultimately you have to ask yourself - is it better to have an empty gite, or one that brings in 20% less than it did previously?  And only the owner knows the real answer. Healthcare Issues Site    Report

13/04/2008, 19:28 NormanH Joined on 10/04/2008 Posts 179 Re: Gite Bookings!! Isn't it the principle on which Ryanair works?    Report

13/04/2008, 19:40 Ron Avery Joined on 29/11/2004 Aveyron 12 Posts 3,096 Re: Gite Bookings!!  NormanH wrote: Isn't it the principle on which Ryanair works?   No its not. Ron in the Avey-ron    Report

13/04/2008, 19:43 NormanH Joined on 10/04/2008 Posts 179 Re: Gite Bookings!! So they don't lower the prices to ensure the most 'bottoms on seats' possible?    Report

13/04/2008, 20:03 Clair Joined on 23/08/2004 ------- Forum Moderator ------- Lot Posts 6,247 Re: Gite Bookings!! No they don't. They allocate a number of seats on each flight to a minimum price and once that number of seats is sold, the price goes up to the next tier. Clair, a Real Virtual French Person La vérité est si obscurcie en ce temps et le mensonge si établi, qu'à moins d'aimer la vérité, on ne saurait la reconnaître. (Blaise Pascal)    Report

13/04/2008, 20:04 Cendrillon Joined on 19/10/2007 S.E. England & S.W.France Posts 363 Re: Gite Bookings!!  Russethouse wrote: FWIW my opinion is that Gite holidays offer better value when funds are low - you ca cater for yourself, bring tinned food etc   Quite right RH and gites in France are often cheaper than renting a cottage in the U.K. especially during high season. Cendrillon    Report

13/04/2008, 20:09 Cendrillon Joined on 19/10/2007 S.E. England & S.W.France Posts 363 Re: Gite Bookings!! "And surely there are very few overheads with Gites? The investment was in buying them, but the costs of staying in them is carried by the holidaymaker who has to buy their own food, pay the electricity etc." NormanH Many gite owners include electricity / gas / other heating, laundry and water costs in the weekly rental.   Holidaymakers still have to buy food for the family whether they are at home or away. Cendrillon    Report

13/04/2008, 20:14 Russethouse Joined on 23/08/2004 Forum Moderator Posts 9,489 Re: Gite Bookings!!  cooperlola wrote:  NormanH wrote:  ltf wrote:  NormanH wrote: Surely the answer is to reduce prices 20% to allow for the low exchange rate. See: http://www.guardian.co.uk/business/2008/apr/10/currencies Great idea Norman! For those of us whose main income is from gites and live in France, do you think that our overheads, shopping and fuel bills etc. have also gone down 20%? Do you really think that we pluck our prices out of the air when we are pricing? A bit of tweaking may be necessary, but I doubt there are many people who run gites as a business who could  maintain their level of service to customers with a 20% reduction in income. But this is what is being asked of people on  a fixed income in sterling, such as Pensioners living in France. And surely there are very few overheads with Gites? The investment was in buying them, but the costs of staying in them is carried by the holidaymaker who has to buy their own food, pay the electricity etc. Isn't it better to accept a lower margin, but keep up the level of bookings? Years ago I worked in the hotel business.  If the rooms weren't full as the high season approached, then the prices were cut until somebody booked one. Ultimately you have to ask yourself - is it better to have an empty gite, or one that brings in 20% less than it did previously?  And only the owner knows the real answer.   Depend how low your profit margin was in the first place and what the competition is doing to some extent - but if I was marketing I would do a few sums and highlight the value for money compared to x.y and z www.quimperclub.org 99    Report

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France Forum » Owning/Running ... » Gite Owners » Gite Bookings!!

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