How do you respond to requests for discounts?

[Mylinh0]

I'm new to hosting and have spent a lot of time reading the discussions here, so thanks for all your wisdom and experience.  

I've noticed something so far (in my 2-3 weeks in this game) that I wanted to get other people's thoughts on.  I've gotten several inquiries that didn't go anywhere, which I figure is par for the course and just move on.  But I did get an inquiry angling for a discount.  I was hesitant to offer it, because being new, we're priced competitively for the area, and because the person was looking to book in the summer, which is a popular time for the area.

The whole exchange did make me think, were those inquiries that didn't end up booking looking for me to offer them a discount, and since I didn't, they booked elsewhere?

So, I wanted to find out from the community:

1) Do you get a lot of inquiries asking about discounts?  

2) How do you address them?  Do you usually say ok to get the booking, especially if you're new, like me?  

3) If someone makes an inquiry about your space, but doesn't mention a discount, do you offer them a discount anyway to encourage them to book?

[Marit-Anne0]

1) No - and even less since I turned Instant Book on (it moves you up in the search results too).

2)If it is long term I point out that there are already weekly discounts. If not, I point out that a two bed apartment that sleeps 4 is very good value cosidering the hostel charges more for a double.  Or as you say - point out the facts: "we're priced competitively for the area, and summer is high season. Sometimes I am very upfront as going below my minimum would be pointless and would not make me a profit.  

3) No. Pre-approve and move on.  

[David126]

Had one the other day, coming up for a conference, none happening near me so who knows.

Just said no and pre approved. As expected heard no more.

Those penny pinching tend to be a total pain in other areas, just do not do it.

[Helen3 · Accepted solution]

Hi @Mylinh0

Just price your accommodation so it's great value for your area and competitive with what similar properties in your area are offering. Airbnb give you a boost in the listsing when you start, so that will help drive traffic to your listing.

Don't use Airbnb's smart pricing - it's way off kilter.

You might want to offer a small discount for longer term stays ie a week or month (although I find longer term guests more expensive and more work).

I do get some people asking for a discount. I always say no. I tell them my place is already great value and I offer a 5 star experience. I suggest that they would be better looking for a property within their budget and wish them a pleasant stay in my city.

Many hosts on these forums reports those asking for a discount are often demanding and difficult guests in other ways.

[Andrea9]

@Mylinh0

In addition to @Helen3 and @David126's advice I'd like to tack on that I've seen a couple of articles online that give travelers advice to ask for discounts esp. on  hosting platforms. One was geared at budget travelers like students with the advice to target dates that were only a few days out since hosts were more likely to accept a lower price if the host has less chance of renting at such short notice.

As David says, these guests aren't usually the best. And seeing it's the best time for you, you'll have better chances to rent coming up.

Also consider that you will get more experience with guests and more (positive) reviews if you don't take a long-term booking right away. 

Also a word of caution - seems there are many looking to book with new listings (usually without a cap on rental time!) because they need a home. Also, if I remember right, somebody automatically has tenant rights in California after 30 days (!).

Don't give discounts for longer stays. Tell them it's to cover the non-optional weekly cleaning service. That gives you oversight to see what is happening in the apartment - is it being trashed, how many people actually living there, etc. 

[Monica4]

I decline immediately. Even if they try to book again and are willing to pay the full price. After almost four years of hosting I have found that people who do not appreciate the value of your listing will not be good guests.

[Mandi-S-Just-Business-Ro0]

I agree with Monica. By the time I have posted my rates, I've reviewed my pricing carefully in terms of providing good value. Factors include....

location,

competition,

time of year, and

equity (i.e. reviews). 

As a former retailer, I might well change prices as often as weekly (Mondays are a favorite price change day) and/or offer discounted rates in between bookings.  By the time you do the math, long terms can be as little as $23/night.

Most people get this, but every so often somebody wants MORE for the sake of MORE. Of course! What services are they prepared to offer me in return? 

[Mylinh0]

@Andrea9 Great tip on the "non-optional weekly cleaning service"!  I didn't even think of that, but will keep it in mind for people staying longer than a week.

[Cameron80]

Hi - I'm curious as to whether you charge for this non-optional weekly cleaning for long term guests, and if so, is this done through the platform?

[Jennifer1546]

I have a non optional cleaning every 2 weeks. I bill them through the platform as soon as I finish cleaning and changing the sheets. Happy guest/happy host. This way I know my place is being cared for. Learned the hard way

[Mylinh0]

Thank you so much for your responses, everyone.  You've confirmed my initial reaction.

[Colleen47]

@Mylinh0 I'm in agreement with most of the responses here. I jave noticed that people who ask for a discount rarely book. I'm lucky enough to have made it through my first year, and things are looking good. I truly feel that quality guests will pay for the property they want. While my listing is slightly more expensive than others in my area I figure it's ok because I offer what few can. Hold your ground, but if you do offer a discount realize it doesn't usually turn into a booking. 

Luck

colleen

[Rosemary-and-Lisa0]

So confusing, it is my opinion that there are several different types of travelers that op to use Airbnb.  I have been hosting since 2015 and am a host in a suburb of Chicago and also in Sarasota.  I obviously get different types of guests due to the location of each property.  Many of the summer guests in Crystal Lake, IL are student interns.  They are working college students and I truly appreciate them, I have hosted at least 30 student interns and have never had an issue.  I have experienced a majority of them ask for a discount, sometimes I give a very generous discout to them. I have three children that have all gone to college and have had housing issues when getting an internship.  Discounts for vacationers are another issue altogether.  Sarasota guests, for me, have been 85% vacationers.  I am leaning, and some of these guests have a system in finding their own discounts, example:  I have my calander open for booking for nine months out. It is July in Sarasota and rates are almost half of what they can be January -April.  I had someone instant book all of February and my rates were not what they should have been.  I did not cancel on them, but I have learned a lesson.   He sliped and told me he had been watching the pricing on my listing for two weeks before he booked.  Enough said for letting Airbnb set my prices.  I now go in and check my prices everyday.  We will see how it goes this February, our space is similar to a suite or in-law and so I will be present during this stay.

I also have a daughter that travels in Europe, usually on a shoestring, and needed a place in London so she could tour Kings College Guys Campus. She wanted to stay close to the school and the rates in London are rather pricy, especially in that area, and  she needed a place for two nights before heading home to the states.  She reached out to four hosts and there was one kind soul that let her stay and reduced his rate from $235 to $30.  He said he was paying it forward, we still keep in touch with this fellow from London, he is one in a million.  

So with discounts, what I try to do is ask why they are looking for me to discount my listing.  The ones that have a ligit reason will let you know. Then I make my decision on what to do from there.  The easier way is to just let them move on.

There is always an exception to the rule.  

Lisa

[Sonya-And-RC0]

In general the folks that ask for discounts are more work and more trouble.  They expect more while they want to pay less.   I quickly learned to say no to discount requests and it just makes it easier for me.  In the begining I would discount when asked and waste my time trying to decide how much, etc...and in the end most of them didn't book anyway (probably squeezed a better deal out of another poor host).  I price my place in line with the market and time of year and lower my price a week before if its still available.  I never say yes to discounts anymore.   If we all did this, how much easier would it be for all of us?