Asking for discounts on villas

[villa_owner]

Just curious on what the community thinks on this:

Since the economy is pretty much in the toilet we are expecting rentals to our villa to be way down for 2009 and are bracing for such. However, I have noticed a few people asking about renting for next year, but kind of demanding discounts on our published prices. Most of the time the emails go something along the lines of "We see that you rent your villa for $X per week, but we are on a budget and only want to pay $X." This is not for off-season - most of these have been smack dab in high season - some even our biggest rental weeks. So far, I have told one person no (it was a holiday and a ridiculous offer) and a few others I have met their prices halfway only to lose the sale anyway. It seems that the renters feel they have to power to ask for whatever they want - or at least these ones do.

Have any of you renters or owners been involved in this recently? I don't want to be unreasonable, but it seems that we are going to be the ones to take it in the pants and so far negotiating hasn't been part of the process. Couple this with our new looming property tax increases and it's a recipe for disaster. I certainly think our published prices are fair, but then again I would rather rent the week at something than have it empty at nothing.

Interested in the forumites thoughts on this subject.

[waterguy]

You own it you get to set the price I could see asking but if you said no thats the price I'd have to make up my mind if I wanted it or not. Last min. I might take less to get it rented if you have had your villa for a while you should be able to tell how bookings are going. I know of a villa that is already booked more next year then it was this year.

[Lulu76]

I think that villas have published rates, and everyone knows that. When I pick a villa, I determine my budget and find a villa that fits within those parameters. I would never dream of calling a rental agent or owner and demanding a discount. I wouldn't even suggest a discount.

I work at a store, and some people attempt to haggle with us there. If we could afford to sell something at a lower price, that would be the price. It doesn't do us any good to have merchandise on our shelves.

I think it's a slippery slope to just offer discounts to folks because they ask. What if they enjoy the villa and tell all their friends? Then you've got new folks asking for the same price that you gave the first person.

If you feel like you need to lower your rates to do business, lower your published rates, especially if your villa is sitting empty. But don't let people strong-arm you in to giving them a deal they don't deserve. I have looked at every villa on St. John, and there are plenty of villas for every price range.

[piscesgirl0314]

From someone who has rented villas on STJ three times...if you don't have the money to pay for the villa then you have no business going...

[sailorgirl]

I agree with Waterguy, you own it, you set the rate...
Only you can decide whether it's better to have a confirmed reservation at a lower price or run the risk of having the villa empty. We are heading into unchartered waters, no one really knows the degree to which the economic downturn will affect this kind of discretionary spending. Like any business owner you will have to figure out what you're break even point is and be quided accordingly.

Good luck to you!

[tjwgrr]

From someone who has rented villas on STJ three times...if you don't have the money to pay for the villa then you have no business going...

But if you had the opportunity to get a nicer villa during off-season for what your budget allows, wouldn't you do it?

Although I've never done it with a villa, I don't think politely asking is so terrible. The worst that can happen is the answer no. I'm sure everyone here has asked for a discount on listed prices when purchasing a vehicle or a home....

[toes in the sand]

I think that a polite request about a discounted price is never an insult and deserves a polite response and perhaps consideration. I can understand that once you discount, you have established a lower value on your property and that is not something you wish to do. Perhaps if you offer diminished service for a discounted price such as no A/C during their stay. Perhaps a caveat that if a renter offering full price appears then the discounted offer is off the table and they have first refusal rights.

A demand of a discount, now that is something else. I would react the same way as I do a high pressure salesman, quietly stand up turn around and walk out.

[Diana2]

Everyone is "tightening the belt" these days. Many who have never in the lives asked for a discount are now finding that they can ask for a lower price. You may or may not get a discount but you never know unless you ask. As others have said, you and only you can know whether it benefits you to have a discounted week rental or an unoccupied week at your villa. I'm afraid that the tough economy in the states is affecting the bottom-line there in St. John. It's not fun for anyone. Good luck with your decision.

[Bug]

I think that if you can afford to rent the villa cheaper than the published rate, you should change the published rate. If I rented a villa for one price and found out later that someone else rented the same villa cheaper (and people do talk) ~ I'd be unhappy and you would loose my business from then on. I know that some people would say it's my own fault for not asking for a better rate but when did villa renting become a haggling sport? If this starts to happen and people find out, you will be forced to haggle with EVERY-one on EVERY rental. Do you really want to go there?

As far as last minute rentals...many websites publish last minute "deals" or discounts when the villa is available. They are what they are - last minute deals. Anyone knows that booking last minute can save you some $$$ but won't always get you exactly what you want.

XOXO
Bug

[villa_owner]

Interesting replies so far - thanks for the input.

We have owned our villa for a number of years (over 5), and I have to say this is the first time I have seen this in this way. Sure, occasionally we get some people asking for a discount in say, October, which is arguably the "quietest" month on STJ and a time that we normally don't sell all weeks. Or, maybe a return renter, or a last-minute rental. It just raised my eyebrows a little that recently this has happened more that a few times - something out of the ordinary. Just trying to figure out if it's a sign of things to come or if it's just a fluke.

We are lucky enough to have a pretty popular rental, but we are preparing for a downturn in rentals next year and hoping that it is not the case. It just seems that in times like these the first thing to go is a tropical vacation with the airfare and other related costs to get to the destination in the first place.

[nothintolose]

I don't even look at villas out of my price range. Why bother, there are so many out there in all different price ranges.

I would say, if they want to ask, no problem but there is nothing that says you have to say yes. The only time I would offer discount rates would be much closer to the time that if it is not reserved and offer them on your site to anyone. You know, like last minute discount. If it is a popular villa though, people are gonna pay the price.

[Chet]

We rent our shack in Rehoboth Beach. For the past 4 years the same group of guys have signed a seasonal rental. It's a reasonable rate and we have raised it once. I prefer return renters and I do what I can to make sure they have everything they need.

The villas on STJ are much more expensive to maintain. Water, electricity, etc. We have friends that own a villa on Gift Hill and we get to see the bills vs rental - they lose. I would never directly ask for a lower rate. We worked with the same agent for years on STJ and she has offered discounts to properties that don't have frequent renters. If an owner instructs and agent to offer discounts to known clients, then that's a business decision, not the renter's.

Yes, the economic picture is not pretty. But directly asking for discounts doesn't help. We're downsizing our villa choice this year. Quality is important, the number of bedrooms is not.

[California Girl]

I think it's a sign of the times. Everyone wants what they've always been able to have, but there's less money to go around right now. Personally, I think it's bold to demand a discount and you have every right to turn them down. I also agree with the others who have said it might be an ok idea to run a last minute special if you think the villa would be vacant for a particular week.

I know of others on the forum who, after renting the same villa a number of times, now deal directly with the owner and receive a discount. But that's for people who have developed a relationship with the owner and a nice thing for the owner to do for repeat customers. But just because you offer (key word here being "offer") a discount to someone who has been a good client, or is a personal friend, that doesn't mean everyone else has a right to expect one.

[alw1977]

Air fares have increased for the most part, so for many families their annual St. John vacation costs $1000+ more than last year. That difference needs to be made up somewhere or they can't go. They ask for a discount because "hey, you never know."

Eventually, some owners will probably get desperate to line up some weeks and cave in, and then it affects virtually all villa owners. We're going this week, and I freely admit to asking for small discounts (10% or so) since it is October. Some people were receptive, others not so much.

[Teresa_Rae]

A few years ago we rented directly from an owner; I think his website said something like “ask about special off season rates.” I emailed him and politely asked if he had any special discounts for our week, and he took a few hundred dollars off of his off-season rate. I would never demand or even suggest what a villa owner should do, but politely asking saved us a few hundred bucks.