How to think about and come up with monthly discounts?
Setting monthly discounts can be a powerful pricing strategy for property managers to attract more mid-term bookings, specially during slower months or off-season periods. In this article, we’ll discuss how to use data to effectively decide and come up with your monthly discounts, and provide guidance on setting them up in PriceLabs.
When setting monthly discounts, there are some key things to consider:
- Depending on the PMS/Channel Manager you use, you might be able to set this up on Pricelabs itself, or in the PMS. Check if this feature is support in PriceLabs for your PMS: Monthly Discount Availability.
- The monthly discount will apply directly on the OTA (Airbnb, VRBO, etc...) to potential guests looking for stays of 28 nights or more. You’ll need to check what the final price is on your actual booking page, on any given date range.
- Protection for low season: During low season, or last minute dates, your daily prices might be close to the minimum price you’ve set on Pricelabs. Considering that the monthly discount will apply over the sum of the daily prices, you might want to double-check your minimum in Pricelabs, to ensure your monthly price won’t drop below a certain threshold.
There is important data you can get from the market dashboards that will help you to decide and be able to set up your monthly discounts in line with your market.
Step 1: Make sure to first create a custom comp-set on your Market Dashboard to make the data more relevant. Then, apply this compset to your dashboard.
Step 2: Once you’ve filtered the dashboard to show the custom comp-set data, navigate to the ‘Policies and fees’ section and check the monthly discounts chart. This chart shows the percentage of occurrence of different Monthly discounts in the listings (supply) and bookings in the last 30 days (demand). It only considers bookings where monthly discount would apply.
Step 3: You can also navigate to the Summary table to check what’s the median daily price for stays of 28+ nights for this particular comp-set.
Length of stay chart
You can use this chart to understand if there are bookings longer than +28 nights in the market, and at what time of the year they are more common.
How to set up monthly discounts in PriceLabs
Setting up monthly discounts in PriceLabs is a simple process. Here’s how to do it:
Log in to your PriceLabs account and navigate to the listing’s customizations panel.
Under the ‘General’ tab, turn on the ‘Monthly discounts’ toggle
Enter the percentage discount you want to offer and save changes.
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