Know-How Exchange : Strategy

My B&B accommodation (www.terracelodge.com) operates in a small village (Chile). From the beginning till last January it had a very good occupancy rate. Since a few months that rate has sharply dropped due to two main reasons:
1) a drop in international tourists arrival in the country and especially in my area. Nothing I can do about it.
2) an increase of the offer in the area. The cake is now smaller and the slice got thinner.

Since the quality of my service is better than the competitors', I did not lower the price. I think that decision would be a suicide. Comparing to my closest competitor, my price is +/- 20% higher and my quality 35% higher. Unfortunately many tourist get hooked by the lower price without considering the benefits by choosing my B&B.

I'm starting a strategy with a colleague (same business) in the nearest city. Clients booking one of our B&B will get a discounted rate, and a special assistance, in both. This strategy will probably help a little even if it is not the solution to the problem.
I was also thinking at improving my quality of service, without increasing the price, to keep a wider difference in quality from my direct competitor.

Another problem is that many tourists book via Booking.com, Expedia etc., which don't show and don't list most of my services, such as multilingual staff, better heating system, better breakfast, better parking etc. Most tourist are blind and deaf, and only see the lower price.

What to do?
Thanks.