Friday, April 27, 2012

A serious question - please respond!

If you follow our posts, you know that we're running a special for all open dates in April and May (through the 24th) for 15% off the regular price.  That lowers the TOTAL you pay to just $142.80 per night, including tax (there are no extra fees).

Yesterday, I got an email from a Gatlinburg management company with several dozen cabins containing this offer (good through May 20):
  • Book for Two (2) nights, receive 15% OFF!
  • Book for Three (3) nights, receive the 3rd Night FREE!
  • Book for Four (4) nights, and pay for only 2 1/2 nights!
  • Book 5 Nights (Sunday thru Thursday) and PAY FOR Three!
  • Book for seven nights and receive the 6th & 7th night FREE!
I decided to check out this "great deal."  I went to their Web site and started the reservation process for every one of their cabins that sleeps 8 people (just like All Decked Out and Smoky Mountain Tower).

The cheapest rental rate was $125.00 per night, but those were for cabins with 2 bedrooms and 2 baths (they sleep 8 people on futons and multiple sofa-sleepers).  For all their "true" 3 bedroom cabins, the nightly rate ranged from $160 to $200 per night.  Not too bad, right?  Our regular price at this time is $149 per night - so we're $11 to $51 per night less.

But when I tried to make the reservation, I found two things:
  • This company adds a $50.00 reservation fee and cleaning fees between $60.00 and $90.00 to every reservation.
  • There was no way for me to find out online which cabins offered their "specials" and no way to book the specials online.  I had to call them.  And when I called, I was sent to voicemail!
So, the total online price for somewhat comparable cabins to ours (none of their cabins are as large as ours) for 3 nights ranged from $782.87 to $827.98.  If we assume their "Book for Three nights, receive the 3rd Night FREE" offer is legitimate, that would lower their total prices to a range of $569.39 to $608.85.

With our special deal, our current total price for 3 nights is $428.39, which is $160.73 less than their "special."  And if we look at their average regular price of $805.43, that compares to our regular price total of $503.99.  So they are some $300.00 more expensive than we are - almost 60% more, or about $100.00 more per night!  And remember, this is for smaller cabins!

We've checked prices of comparable cabins all over Gatlinburg.  For our size and amenities, we are almost always the lowest priced cabins.  And yet, we still have some good nights open, while those more expensive cabins are getting reservations.  So here is my serious question:

Have we priced our cabins so cheap that people think there is something wrong with them?

Nobody likes to spend more money than necessary.  But can something be priced too low, just like it can be priced too high?  I am honestly asking for your thoughts.  If you were in our situation, what would you do?  You can respond publicly, or just write directly to me at Dave@SmokiesRentDirect.com.  Please - I need to hear from you.  Thank you!

4 comments:

  1. Our first visit there we stayed at Smoky Mtn Tower. Great place and great price. We have now stayed at All Decked out several times, and are staying there again this year. We love both places and the price is always perfect for the size. We would rather stay here than be stuck in a motel. Great places.

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    1. Thanks, folks. We really appreciate your comments. We hope you can come back soon. Please check our online calendar for available dates.

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  2. Dave, You definitely are doing everything right. I sing your praises all the time. We volunteer at our local Visitor Center on I-35 in New Braunfels Texas. I talk to people all the time telling them what a great place you have and especially how easy you are to work with. I recommend you to anyone traveling in the Smoky Mountain area. Your policies and fees are just right and not designed to "gouge" people. I believe your Christian life style shows in your business dealings.

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    1. Thank you, Else, for your very special comments. You have captured the essence of what we have tried to do for almost 16 years. We certainly don't want to "gouge" people. But we also can't afford to be losing money. We are planning a major comparative pricing study in June - checking the comparability of several hundred Gatlinburg properties. After that, we'll decide what to do about prices. Our goal is to keep them as low as possible and not have any "extra" charges, but still cover our costs.

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