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When to Offer Discounts (And When Not To)

Read Time:  
~4 min
Published on:  
September 23, 2025
LT
Experienced STR Host

Discounts can be a great tool—when they’re used on purpose.
Used wrong, they undercut your value, attract the wrong guests, and burn out your profit margins.

Used right, they help you fill gaps, boost occupancy, and increase lifetime revenue. The key is knowing when to offer a deal—and when to hold your ground.

Here’s a breakdown that keeps your bookings strong and your margins healthy.

1. When to Offer a Discount

To Fill Last-Minute Gaps

If your calendar is wide open a few days out, it’s better to earn something than nothing at all.

What works:

  • 10–20% off for bookings within 2–3 days of arrival

  • Flash sales to fill cancellations

  • Discounted single-night stays in between longer ones

Be careful: last-minute deals should feel like a bonus, not your standard pricing.

For Longer Stays

Guests booking 7+ nights are saving you turnover costs. Reward that.

What works:

  • 10% off weekly stays

  • 20% off monthly bookings

  • Free cleaning or linen service for longer stays

The goal is to increase total booking value, even if the nightly rate drops slightly.

During Low-Season or Off-Peak Times

Every market has its slow season. Use discounts to stay competitive without training guests to expect low prices year-round.

What works:

  • Modest discounts (5–15%) on weekdays or low-demand months

  • Incentives like early check-in or flexible cancellation

  • Adding “value” instead of dropping price (see below)

To Attract First Reviews (Carefully)

If your listing is new and you have zero reviews, a temporary discount can help build momentum.

Tips:

  • Keep it short-term (2–4 weeks max)

  • Don’t underprice too far below your target

  • Focus on attracting ideal guests, not bargain hunters

Once you’ve got a few strong reviews, raise your price to match the experience.

2. When Not to Offer a Discount

Out of Panic

Your place hasn’t booked for next month yet? That’s not always a problem.
Most bookings come last minute, especially in urban or weekend-heavy markets.

Before you slash your price, ask:

  • Is my listing optimized (photos, title, amenities)?

  • Is this just normal booking behavior for my market?

  • Do I need to adjust my minimum stays or calendar settings instead?

Discounting out of fear is how good hosts lose money.

Just to “Stay Competitive”

If your listing is clearly better—nicer design, stronger reviews, smoother check-in—don’t price match weaker competitors. Price for value, not volume.

Your goal is not to be the cheapest. Your goal is to be the most worth it.

To Make Up for Lack of Quality

If you’re getting bad reviews, poor photos, or negative feedback, discounting won’t fix the real issue.

First, solve the guest experience problems. Then, revisit your rate.

Guests will pay more for a clean, thoughtful, seamless stay. Always.

On Peak Demand Dates

Local festival? Summer weekend? Christmas week? Don’t discount.
In fact, raise your price—early.

If demand is high, hold your rate. If your property is well-positioned, it’ll book. Cheap listings get booked first. Premium listings get booked right after, at better margins.

Bonus Tip: Add Value Instead of Dropping Price

Sometimes, instead of discounting, just add more for the same price.

Try:

  • Free late checkout

  • Complimentary bottle of wine

  • Welcome snacks or upgraded coffee

  • Early access to the space

These cost you less than lowering your rate—and feel like a gift, not a deal.

Final Word

Discounts should be a strategy, not a habit.
Used intentionally, they help you stay competitive, fill calendar gaps, and earn more over time. But when you discount out of fear, you risk training guests to undervalue your space—and you.

At JLT Management, we help Airbnb hosts price smarter, protect margins, and build guest experiences that don’t need discounts to sell.

Let’s optimize your calendar—without giving away the value you’ve built.