Tiered Pricing-Need Help

Tiered Pricing-Need Help

Hi fam,

I am trying to figure out how my competition is getting tiered pricing without offering discounts. In short, if you take 2 nights with them, the price is 380 per night, but if you add a 3rd nigh,t it drops the average per night to 333. 

Can someone help me understand how I can do this as well?

4 Replies 4
Emiel1
Top Contributor

@Alisa-and-Nathan0 

 

They have set different discounts for a 2, 3, 4 etc. nights stay.

 

OR

 

They charge a cleaning fee, which amount is spread over the duration of the stay.

 

(Or both)

 

hi @Alisa-and-Nathan0  - 

 

what @Emiel1  said and add this potential idea, which might be what is being referred to but just in case:

 

- you can use 'rule sets' to get this type of result.  you can create a custom discount to apply for say "4 nights" when your minimum is something less than "4", although I am unsure if this just shows up as the price or if it shows up as having a discount applied. hmmm

 

 

 

 

Hi, @Alisa-and-Nathan0

I don’t believe your competitors are necessarily applying daily discounts — although that can be done through length-of-stay rules.


In most cases, what’s happening is much simpler: it’s the fixed cleaning fee being diluted over more nights.

Let me explain with a clear example.

 

Assume:

  • Nightly rate: $300 USD

  • Cleaning fee (fixed): $200 USD

Now look at how the average changes:

- 1 night
$300 + $200 cleaning = $500 total
Average per night: $500

- 2 nights
$600 + $200 cleaning = $800 total
Average per night: $400

- 3 nights
$900 + $200 cleaning = $1,100 total
Average per night: $366.67

- 4 nights
$1,200 + $200 cleaning = $1,400 total
Average per night: $350

- 5 nights
$1,500 + $200 cleaning = $1,700 total
Average per night: $340

 

As you can see, the nightly rate never changed — it stays at $300. But the average price per night drops naturally as the stay gets longer, because the $200 cleaning fee is spread across more days.

That’s usually why it looks like “tiered pricing” without visible discounts.

 

Of course, you can also implement structured length-of-stay pricing inside your PMS or Airbnb settings if you want to intentionally reward 3+ night stays. But in many cases, it’s simply the cleaning fee effect.

 

From a revenue perspective, this is actually a very healthy structure because:

  • Short stays protect revenue

  • Longer stays improve occupancy

  • You don’t need to advertise discounts

If you’d like, I’d be happy to look at your specific setup and help you structure it strategically. I really like your property and I think with the right pricing architecture it could perform even better. I'm from Argentina and I manage properties in Miami City!

 

Best,
Agustín

Hi @Alisa-and-Nathan0 

what you’re seeing is usually done through length-of-stay pricing rules, not visible “discounts.”

Your competitor likely has a rule set that says something like:
• 2 nights = base nightly rate
• 3+ nights = lower average nightly rate

So instead of showing it as a “10% discount,” Airbnb simply recalculates the nightly average when the stay gets longer. That’s why it looks like tiered pricing.

There are two common ways hosts do this:

  1. Length-of-stay pricing
    You can set different pricing for 3+ nights, 5+ nights, etc. Airbnb then spreads that lower total across the stay, which makes the per-night rate drop.

  2. Rule sets or custom trip length pricing (Pro tools)
    Some hosts use rule sets tied to minimum stay length so longer stays trigger a different pricing structure automatically.

This approach helps:
✔ encourage longer bookings
✔ reduce turnover costs
✔ increase total payout
✔ avoid showing “discounts” publicly

If you want, I can walk you through exactly where to set this up in your pricing so it works the same way.

Esther Chukwu

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