Weekly discount

[Angela104]

Hi all!

I am wondering how you feel about weekly discounts?  I offer them, and recently had a guest book a week, when she was planning to stay less time, because she would save money at the weekly rate.  I felt annoyed, because, that while it saved her money, it took my rental off the market for those extra days.  My feeling was that if you book a week, you should stay a week, and that she was not actually eligible for the discount.

My husband, bless his heart, sided with her!  I guess it is not a black and white issue, and was wondering how other hosts felt about this. 

Many thanks,

Angela

[Sarah977]

@Casey259  But you also have to take into account that if guests stay a week instead of 3 or 4 days, they are using up more amenities, utilities, dirtying more towels, etc. And if they are messy people, there will be more cleanup required after a week than after a 2 night booking (although some guests can somehow manage to turn the place into a disaster area in one night, and others can stay a week and leave it immaculate).

As newer hosts, I guess you'll get a sense of what works best for you as time goes on.

[Casey259]

@Sarah977 , I totally get what you're saying! The question was about what discount rate to apply, if any, to a stay of a week. Theoretically, I stick to my guns but, as you say, experience is the best teacher!

[Sarah977]

@Casey259  Yes, it's different for everyone, depending on location and the reason guests come to your area. In my case, guests come on vacation, most fly here or bus from elsewhere in Mexico, and most book for a week or more anyway, so there isn't any reason for me to offer a weekly discount. Plus I try to price for budget travelers, so my profit margin doesn't really have any leeway.

[Casey259]

@Sarah977 Your place looks great! Don't be surprised if I book it sometime in the next few months! But, yeah, every property is different and every discount calculation must be based on local demand patterns.

[Sarah977]

@Casey259 Thanks. I've actually had my calendar blocked since March 2020 due to Covid and it being a home-share. I still need my second vax, but hopefully plan to reopen in Dec. I'd be fine with someone I knew was vaxed and took masking precautions when out in public, but can't trust every random guest to be honest about it.

[Casey259]

Of course! Totally understand. It's your place, after all!

[Brian2036]

@Angela104 @Casey259 

This problem often arises from Airbnb’s BS suggestions.  They are really dangerous to implement.

They wanted me to post a ridiculously low base price, then offer a 25% weekly discount, a 53% monthly discount, and make the house available for 6-months at a time.

They advised me that this was average in my area. (BEEE ESSSS!)

I was ignorant enough to do it, and surprise! Someone jumped on it right away.

They only planned to stay for 2 weeks, booked for a month, then demanded a refund for the 2 weeks they didn’t stay. I couldn’t book anyone else for two weeks, lost in a big way.

Now I have 10% off for 7 days and 30% off for 28 days. (No more than 28 allowed.)

Thanks to the excellent advice here I am about to change that to 20% for 28 days.

[Casey259]

@Brian2036 Yeah, I'm sure they have really smart folks working on those discount algorithms, but I agree with you that we're a hell of a lot smarter when it comes to our individual properties!

[Brian2036]

@Casey259 

When I changed my 28-day discount to 20% I got this helpful suggestion from the Airbnb computer:

Most monthly discounts in Yellville are for at least 33%. Setting a more competitive discount can grab guests' attention on the search results page.

Now that is just not true. I checked.

Before I made the change they told me that most monthly discounts here are for “at least 53%.”

Did my change skew the average that much?

[Sarah977]

@Brian2036  Reminds me of a friend in the construction business who asked the building supply, if he purchased more plywood, if the unit price would go down. 

When they said yes, he said "Okay, keep loading until it's free".

Airbnb suggests I lower my nightly rate to $14 US for a private room/private bath with full use of my kitchen and outdoor spaces, coffee in the morning, and a pick-up at the bus station. Meantime, my guests pay double that and tell me my place is great value.

This company couldn't care less if it cost you money to host, as long as they get their service fees.

[Liz336]

For me the weekly discount has an entirely different purpose. When I take direct bookings (i.e. not through airbnb) I charge 80% of the weekly price for a 3 night weekend. So if the weekly price is £1000,  a 3 night weekend would be £800,  fri/sat&sun would each be £266. A 4 night mid-week break is 70% of weekly price, £700/4, so £175 per week night.

That means a week would work out at  3*266 + 4*175= £1495. To bring the weekly price back to £1000 I need to offer a 30% weekly discount.  

[Liz336]

and to add to that - I couldn't care less how long they stay, if they pay for the week and only stay 5 nights that's great for me - less fuel costs. Of course it would be a bit infuriating in the sense that I might have been able to book those 2 nights, but hey that would be like saying I want to be able to have multiple bookings per night! 

I'm sorry but I can't see the person who originally asked what people thought - but I'm having a problem understanding your logic - I'd say not only do your want your cake and be able to eat it, but you want two cakes! 🙂