Learn about how offering a promotion based on length of stay can benefit your bottom line.
New to Length of Stay Rate Rules? Check out the following articles for more information:
Length of Stay Based Rate Rules: Set up
Commonly used report for supporting a LOS Promotion:
Sites with One-Night Gaps
Q: How can I use Campspot to create revenue opportunities?
Campspot has a ton of great functionality that can automatically work for you to increase your bottom line. Features like Dynamic pricing, Locked Site Fees, and Grid Optimization are just a few features you can leverage to increase revenue (for more information on those topics, click here).
Another feature that Campspot offers, can increase the length of stay for bookings if used as part of your revenue strategy.
You can set up a rule (Package / Discounted Promo Code Pricing) to incentivize your guests to book more nights and save some money. A site sitting empty is worth nothing, so this is one function you can use to proactively fill gaps at the creation of a reservation.
Q: Are you saying I should discount in my peak season?
Depending on your strategy, potentially, but if are also using Dynamic Pricing to adjust your rates, the higher your occupancy, the higher the base price. This function will enable you to manage your Booking Window in a creative way, creating more business. You will also be incentivizing guests who book further out while charging a premium for lesser night stays booked closer to arrival.
Q: Will Dynamic Pricing work with Promo Rules?
If the rule created uses a Variable rate that is a $ or % Rate Change - Dynamic Pricing will always work. If the rule created uses the following, Dynamic Pricing will not work:
- Fixed Rate
- Rate Change is a $____ new rate.
Q: Is offering a LOS Promotion a common practice?
When was the last time you went to the grocery store to purchase your favorite item and saw an offer to add another to your cart to save on all the items? (Buy 3 sodas, get 1 Free)
The tourism industry has leveraged this practice for many years to increase Guest spend by giving them an incentive to get more nights from them in return. The more nights, the more guests, the more they will need to utilize the outlets in your campground - increasing Total Guest Spend.
Q: How can I use the "Sites with One-Night Gaps" report to support my strategy?
This reports the number of one-night gaps you have in your campground. If you run this report for last year, how many one-night gaps did you end up with?
Let's say this number is 300 nights. If a strategy were put in place to close 50% of those gaps at $50 per night, we could essentially add about $8,000 to the bottom line.
What strategy could you use to close those gaps?
Below are examples of how to use the rules. Campspot is not recommending any particular use of this functionality, but providing specific examples to demonstrate how you could set each up.
The examples below include a screenshot of how the rule will be setup, broken into 2 for easy of viewing.
For support on How to create these types of rules and more, click here.
Strategy: Based on data from Campspot, my guests stay an average of 3 nights during the summer. I want to offer 15% off 4 or more nights if booked up to 30 days prior to arrival for my peak season.
Strategy: My biggest days for Lodging Check Ins are on a Friday or Saturday. I want to increase Weekday occupancy but also want to spread out the heavy Check In days so it is not as hectic for my team. I will offer 20% off Sunday - Thursday for guests staying 3 or more nights with a check in date on Sunday - Thursday.
How can you use this functionality to create business?
When putting together your strategy for a LOS offer, ask yourself the following questions:
- Is this going to be a variable or fixed rate offer?
- Should the Variation name be something I can adjust year over year (YoY) to use as part of my annual strategy going forward?
- What Active Dates is this offer eligible for?
- Should this apply to select site types? All types? All Categories?
- When should this offer expire? (update YoY if this is part of my new planning strategy)
- Does a booking need to Check-in on specific days?
- How many days prior to arrival do I want this offer to be made available? Should I incentivize my guests the further out they book?
- Does the offer only qualify for an eligible period and specific eligible days?
- Do I want this promoted on my Consumer Site? Or should it be a private offer?
- Do I want to use a code to reference in a Marketing Campaign to offer this to a select number of my guests?
As you plan out your strategy, take time to outline your intention behind the offer so you can more easily set it up in Campspot.
Want to learn more about setting these rules up? Click the link below:Length of Stay Based Rate Rules: Set up