10 Tips for Handling Discount Requests on Airbnb

10 Tips for Handling Discount Requests on Airbnb

As an Airbnb host, you may encounter guests asking for discounts. Handling these requests can be tricky, especially when you’ve already priced your property competitively. In this blog, we’ll explore ten effective strategies to manage discount requests while ensuring your business remains profitable.

Table of Contents

1. Understand the Context of the Request

When a guest asks for a discount, the first step is to understand the context. Are they looking to book during a peak season or filling a gap stay? Gap stays occur when there’s a short period between two bookings. These situations often warrant more flexibility in pricing since filling those gaps can significantly boost your occupancy rates.

2. Assess Your Pricing Strategy

Before entertaining discount requests, take a moment to review your pricing strategy. If your rates are already competitive, you may not need to offer further discounts. Evaluate your property’s unique features and the value it provides. Ensure that your pricing reflects this value to avoid undervaluing your offering.

3. Consider Length of Stay Discounts

For longer stays, consider offering a discount. If a guest is looking to book for a week or more, a small reduction can incentivize them to commit. However, ensure that the discount still allows you to cover your costs and maintain profitability.

4. Evaluate the Time of Booking

The timing of the booking can influence your decision on discounts. If a guest is requesting a last-minute booking, they might be more open to negotiation. Hosts often prefer to receive some income rather than leave the property vacant. In such cases, consider offering a reasonable discount to fill the vacancy.

5. Set Boundaries for Discounts

Establish clear boundaries on how much discount you’re willing to offer. Avoid getting into a back-and-forth negotiation that drains your energy. If a guest’s request is unreasonable, such as a significant discount for a lengthy stay, don’t hesitate to decline politely. A firm but respectful response can help maintain your professional integrity.

6. Communicate the Value of Your Property

When responding to discount requests, emphasize the unique features and amenities your property offers. Highlight any benefits they might not have considered, such as location, cleanliness, or included services. By reinforcing the value, you may convince the guest that your current pricing is justified.

7. Encourage Direct Bookings

If feasible, encourage guests to book directly with you instead of through Airbnb. Direct bookings can eliminate service fees and allow for more flexible pricing. Explain this benefit to guests when they request a discount, as it can create a win-win situation.

8. Use Discounts as a Marketing Tool

Consider using discounts strategically as a marketing tool. For instance, if your property is new to the market, offering a limited-time discount can attract initial bookings and build momentum. However, ensure that this approach aligns with your overall pricing strategy.

9. Maintain Professionalism

Throughout the negotiation process, maintain professionalism. Respond to discount requests promptly and courteously, regardless of whether you can accommodate them. A positive interaction can lead to repeat business or referrals, even if the guest doesn’t book this time.

10. Reflect on Your Business Goals

Finally, reflect on your overall business goals. If maximizing occupancy rates is crucial for your revenue, you may be more inclined to offer discounts. Alternatively, if you’re focused on attracting high-quality guests willing to pay full price, it’s okay to stand firm on your rates.

In conclusion, handling discount requests on Airbnb requires a balance of flexibility and firmness. By understanding the context, communicating the value of your property, and setting boundaries, you can navigate these requests effectively. Remember, not every request needs to be accommodated, and it’s essential to prioritize your business’s profitability.

Editorial Process & Affiliate Disclaimer:

Our reviews are made by a team of experts before being written and come from real-world experience. Read our editorial process here.

Some of the links in this article may be affiliate links, which can provide compensation to us at no cost to you if you decide to purchase a paid plan. These are products we’ve personally used and stand behind. This site is not intended to provide financial advice. You can read our affiliate disclosure in our privacy policy.

About the author: