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WHAT SHALL I CHARGE?

There are two methods of working out a rate for serviced accommodation. In one you would survey the local competition and adds or subtracts 10% depending on how you think your product compares – your business may or may not be viable if you use this method. The other method is more scientific and requires you to gather information and make some assumptions to determine a rate. Either way you need to monitor income and expenditure to ensure you remain economically viable.

Method 1
Find out what your nearest similar establishments are charging and then add/take off, e.g. 10% dependent on how you feel you compare with them. This may be simple but it is not scientific and may not give you a viable business.

Method 2
This demands a factual approach where you gather data on aspects of your existing or proposed business, put them into a spreadsheet and then decide if you are going to make any money. You then adjust your figures to ensure a viable business, work out a rate say based on one night bed and breakfast tariff and then you start looking at your competition and whether your rate looks sensible against the competition in the market place.

If you are new to the business and are buying an existing business this information should be gathered from the existing owners and then scrutinized. If you are starting from scratch use the model described below to help you decide what tariff you should be charging.

The following information is included in the downloadable document

Occupancy
Costs of Operating Business
Profitability
How to calculate a price

If you would like to download this document please click on one of the links below:

What shall I Charge? (Word Document 120Kb)
What shall I Charge? (PDF Document 146Kb)


There are two methods of working out a rate for serviced accommodation;

One method determines a rate based on what the local competition are charging;

The other method is more scientific and requires you to gather information to calculate your rate;

You need to constantly monitor income and expenditure to ensure you remain economically viable.