Hi @Patricia-and-Kenny0
You are not being penalized. Discounts are an optimization tool, not a requirement. The purpose of optimization is to help maximize both occupancy and revenue not simply to offer the lowest possible price.
Airbnb may recommend discounts because they can help fill gaps in your calendar, increase visibility, or encourage bookings during slower periods. However, whether you use those recommendations is entirely up to you. Many hosts choose to offer discounts strategically to fill vacant dates, while others maintain their regular pricing based on demand, location, seasonality, and the value of their listing.
The goal is to find the pricing strategy that works best for your business, not to compete solely on price.