What are Last Minute Discounts and how should I use them?
Beyond Pricing allows you to set percentage last minute discounts in order to increase the likelihood that you receive a booking in the immediate short term. Last minute discounts will pull the nightly price down, but never below your Minimum Price.
By default, Beyond Pricing inputs a discount of 25% for reservations booked within the last three days to stay and 10% for the last seven days to stay.
Additionally, we increase rates by 10% and 30% after 270 and 390 days, respectively. You have a lot of time to capture these bookings, so guests booking that far ahead of time should pay the premium!
Customizing your Last Minute Discount strategy
Guidelines for changes
Every market and listing is unique, so there are no "correct" last minute discount strategies. However, there are some general guidelines:
- Capturing bookings within the last week is very difficult as most people plan in advance. For this reason, we recommend being more aggressive within the last seven days.
- Studio and one bedroom units tend to book last minute more often, while larger rentals book further in advance. We recommend setting more aggressive discounts close to the date of stay for larger homes.
- Fly-to markets require planning to get to. For last minute discounts to be effective, you may want to push these last minute discounts into the last 21 and 28 days instead of three and seven days, for example.
- We recommend staggering discounts, with the largest discount closest to the date of stay, and smaller discounts farther out.
If you'd like to be very aggressive with your Last Minute Discounts, we recommend following this schema:
- 3 days - 40%
- 7 days - 35%
- 14 days - 25%
- 21 days - 20%
- 30 days - 10%
To adjust your last minute discounts, go to the customize tab and open Last Minute Discounts. Input your preferred percentage discounts and hit the green save button at the top of the screen.
Let's take a look at our example listing in Hawaii. Since guests generally fly to Hawaii, we can assume a 25% discount three days before the stay will not have a huge impact on bookings. Let's adjust these discounts to reflect our market:
On your Beyond Pricing Calendar, you can hover over dates to see how Last Minute Discounts affect pricing. These discounts will show up as "Vacancy is less than 3 days away," or "Vacancy is less than 7 days away," and so on.
We can now see that change reflected on our Beyond Pricing Calendar. Let's take a look: