Quaaout Lodge Case Study

24 Pricing

The lodge has been lucky to achieve a high occupancy rate. It is often fully booked in the summer, and even the winters are getting very busy with the weekends filling up (e.g., with snowmobile groups). It appears that the pricing encourages this success. The interviewees stated that they are comfortable with the current pricing, and even though they monitor the competitors, they have not felt the need to make drastic changes, despite selling out often. A slight price increase was initiated after renovations in 2019, but prices still appear affordable enough to allow a large market to visit.

Price examples for 2020, before tax, include the following:

2 nights, weekend

March

$338

1 night, midweek

February

$149

2 nights, weekend

July

$558

1 night, midweek

September

$199

Packages such as weddings, bed and breakfast, golf, or spa are often flexible with regards to pricing and attracting various customer groups (e.g., reduced spa packages in the winter or summer golf packages). The price for weddings increased for 2021 bookings, and a review of the effect will determine 2022 prices. The off season has reduced rates, and rooms are discounted if booked for two nights. Some effort is made to encourage customers to book higher-priced rooms (e.g., jacuzzi rooms) or packages, either through promotions, during bookings, or at check in.

Currently, no loyalty program is offered. Discounts for locals are being discussed, such as offering reduced accommodation prices or food if paying for golf. Snowmobilers can receive a discount when they visit certain popular snowmobile areas.