What do discount strategies look like with Beyond Pricing?
- Discounts for new listings
- How Beyond Pricing incorporates discount strategies
- Incorporating promotional discounts set in your OTA
Pricing perception matters. While you should make any and all major pricing changes within Beyond Pricing, if you'd like to further promote your listing, you can also set discounts within Airbnb, Booking.com, or VRBO that work with your Beyond Pricing pricing strategy.
Discounts for new listings
If you have recently set up a new listing, Airbnb recommends offering a 20% discount for your first three bookings. We encourage this as well -- it's a great way to get your listing off the ground and gain your first few 5-star reviews!
How Beyond Pricing incorporates discount strategies
We suggest pricing based on demand in your market to get you booked at the best price at the best time. At times, that includes dropping prices or raising prices based on the context of the booking. Here are the discounts we incorporate into your pricing strategy by default:
- Beyond Pricing Last Minute Discounts / Far Out Increases
By default, your Last Minute Discount settings decrease rates by 25% and 10% for reservations booked within the last 3 days and 7 days to stay, respectively. We increase rates by 10% and 30% after 270 and 390 days, respectively -- you have plenty of time to get bookings for these days, so guests booking this far out should pay the premium!
- Beyond Pricing discounts for orphan nights
One or two night vacancies are hard to fill. We'll decrease prices for these nights automatically.
Incorporating promotional discounts set in your OTA
If you would like to further encourage potential guests to book by incorporating discounts visible to the guest, you might want to incorporate discounts set directly in Airbnb, Booking.com, or VRBO.
Here are a few promotional discounts that work best with Beyond Pricing:
- Email blast offering X% off (any site)
- Special offer -- X% off for certain time period (any site)
- 10% off for non-refundable bookings (Airbnb, set in Listing > Policies > Cancellation Policy)
- Note that, if enabled, this is auto-selected. If you would like to enable this setting, we recommend setting your Base Price 10% higher to offset the discount.
Maintain Beyond Pricing rates with promotional discounts
Increase your Base Price
If you offer a constant discount to stay competitive, such as a 10% discount for non-refundable bookings, we recommend increasing your Base Price so that a 10% discount reaches Beyond Pricing's suggested prices. This will ensure your final pricing is still accurate in terms of the value of your listing and demand trends in your market.
Manually Override Rates
If you would like to offer a marketing discount for all reservations in June, for example, you can offset the loss of the discount by manually overriding those rates in your Beyond Pricing Calendar with an increase. Note that if you would like to manually override dates using a percentage, please reach out to email@example.com. We are always happy to help!
Ensure rates don't dip below your Minimum Price
If you are intentionally offering a larger discount, it is possible that the discount applied on top will push your rates below your desired Minimum Price. To ensure rates do not drop below your Minimum Price, we recommend setting a Seasonal Minimum Price for the dates that the discount will be active that is higher than your desired Minimum Price.
Let's take a look at our example listing in Las Vegas. We'd like to set dates booked in August to be 20% off, but still do not want to see bookings made below my desired Minimum Price fo $100. Since this discount will be applied on top of Beyond Pricing rates, I see some dates that might have rates that go below $100 with my current pricing. To ensure this doesn't happen, I'll set a Seasonal Minimum of $125 (20% off $125 = $100) from August 1 - August 31, when the discount is active:
Airbnb Monthly Discounts with Beyond Pricing
While we don't necessarily recommend using weekly or monthly discounts with Airbnb, that is completely fine as long as you are aware Airbnb will apply these discounts on top of any nightly rates that we push to it.
For monthly discounts, we would recommend setting your discount equal to 100% minus your occupancy rate for the monthly discount. For example, if your average monthly occupancy rate is 60%, then we recommend setting your monthly discount rate to 40%. That way, you're not leaving any money on the table.