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Category: Pricing & Revenue
By: Jessica Morales
Reply by David Okafor:
My discounts by property type: **Urban 1BR apartment (business travelers):** - Weekly: 5% — business travelers already expect to pay market rate - Monthly: 20% — attracts relocating professionals and remote workers **Beach house (vacation market):** - Weekly: 15% — families typically stay a week, this closes the deal - Monthly: 35% — off-season only to attract snowbirds and remote workers **Mountain cabin (weekend getaway):** - Weekly: 10% — mid-week stays are hard to fill so incentivize - Monthly: 30% — mostly off-season play The math is simple: if a turnover costs you $120 in cleaning + 2 hours of your time, a 7-night stay at 10% discount means you're "spending" ~$115 on the discount but SAVING $120+ in cleaning costs (vs two 3-night stays). It's almost always net positive.
Reply by Ryan Tanaka:
I go higher than most people recommend: - Weekly: 15% - Monthly: 40% Why? Because my occupancy rate went from 72% to 89% after increasing discounts. More revenue overall even at lower nightly rates. Plus longer stays mean less wear and tear on the property. The mental model that helped me: **revenue per AVAILABLE night matters more than nightly rate.** A $100/night with 90% occupancy makes $2,700/month. A $130/night with 65% occupancy makes $2,535/month. Higher discount, more money.