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Category: Pricing & Revenue
By: James Wu
Reply by Ryan Tanaka:
I would NOT offer early bird discounts. Here's why: Guests who book 3-6 months out are planning vacations during your peak periods. Those are your highest-value dates. Giving a discount on dates that will likely book at full price anyway is leaving money on the table. The better strategy: use dynamic pricing that starts lower for far-out dates and increases as the date approaches (scarcity pricing). PriceLabs (https://pricelabs.co) does this automatically — rates start at your base price and ramp up as occupancy in your market increases. **When early bird makes sense:** If you have a seasonal property that's DEAD from Nov-March and you'd rather have guaranteed bookings than gamble on last-minute demand, offering a 10-15% early bird for off-season months is reasonable. **When it never makes sense:** Peak season, holidays, events. Those dates will book at premium rates. Don't discount them.
Reply by Omar Hassan:
Counterpoint: I offer a very small (5%) early bird discount for bookings 60+ days out, and it works for cash flow planning. I'd rather have confirmed bookings and know my income projection than sit anxiously wondering if my calendar will fill up. But I agree — never offer early bird discounts for peak dates. Only for shoulder season and off-peak periods where demand is uncertain.