Default Discounts and Premiums

Default Discounts and Premiums

One way we optimize your pricing is by applying premiums and discounts to specific dates based on availability, occupancy levels, and how close or far the available dates are from today.

You might wonder:

  • “Why is there a 20% discount on my orphan days?”
  • “Prices seem to get pretty high six months out—how did that happen?”

Well, here's how! PriceLabs automatically applies a set of default pricing customizations to help optimize your rates based on factors important for your listing's Property Type. Each Property Type have their own set of default customizations designed around their specific pricing and booking patterns.

Before You Start

  1. Please note that your listing may have different Default Customization depending on your listing's Property Type. To ensure that the correct customizations are applied, make sure that you assign the correct property type to your listing following this guide: Default Customizations

Default Customizations based on Property Type

Short-Term Rentals (STRs)

For Short-Term Rentals, PriceLabs automatically applies the following default pricing customizations:
  1. Booking Recency Factor
  2. Last Minute Prices
  3. Orphan Day Prices
  4. Occupancy-Based Adjustments
  5. Far-Out Prices
  6. Safety Minimum Price

Mid-Term Rentals (MTRs)

For Mid-Term Rentals, PriceLabs applies a different set of default pricing customizations based on the longer booking patterns and pricing needs typically associated with MTRs.
  1. Booking Recency Factor
  2. Safety Minimum Price
For more information, you can also check: Mid-Term Rentals (MTR) - Default Pricing

Hotels

Hotels have their own set of default pricing customizations, designed around hotel pricing strategies and demand patterns.

Booking Recency Factor

(Applied to both STR and MTR) Designed to revive underperforming or stale listings that haven’t received bookings recently.
Discount:
  • Applies only to the next 30 days in the calendar
  • 5%–15% linear discount based on how long it’s been since the last booking (starts at 5% after 15 days, up to 15% after 45 days)
Applied When:
  • No bookings in the past 15+ days
  • Reservation data is less than 3 days old
  • Listing has been syncing with PriceLabs for at least 7 days
  • One of the following:
    • Listing Occupancy < 10% in the next 30 days
    • Listing Occupancy < 80% of Market Occupancy and below 70% overall
For a more detailed guide, please see: Booking Recency Factor

Last Minute Discount

(Applied only to STR) Guests love last-minute deals! To ensure bookings while maximizing revenue, we apply a default last-minute discount.
Discount:
Market-Driven Defaults (Hyper Local Pulse)
  • The discount dynamically adjusts based on market trends.
  • The maximum discount is capped at 40%.
  • The discount will not apply beyond 60 days from today.
Old Algorithm 
  • A gradual 30% discount applies over the next 15 days from today.

You can also customize or remove this discount based on your needs. For a more detailed guide, please see Last Minute Prices.

Orphan Day Discount

(Applied only to STR) Orphan days (single nights between two bookings that don’t meet your minimum stay restrictions) tend to sell faster when displayed with a slight discount. For example, if a one-night gap is created, applying a discount increases the chances of it being booked instead of remaining empty.
Discount:
  • A 20% discount applies to gaps of two days or less.
You can also customize or remove this discount based on your needs. For a more detailed guide, please see Orphan Day Prices.

Occupancy-Based Adjustments

(Applied only to STR) Occupancy-Based Adjustments help PriceLabs factor in your property’s performance, not just market trends, when recommending prices.
Discount:
  • A default occupancy-based profile is applied automatically.


You have the option to remove, switch to another profile,  or create a custom one. For a more detailed guide, please see Occupancy-Based Adjustments.

Far-Out Premium

(Applied only to STR) For bookings far in advance, we apply a premium so you can maximize earnings from early reservations.
Discount:
Market-Driven Defaults (Hyper Local Pulse)
  • The premium dynamically adjusts based on market trends.
  • The earliest start is 60 days from today.
  • The maximum premium is capped at 20%
Old Algorithm 
  • A gradual 20% premium applies over seven months, starting 30 days from today (about 0.1% per day).
  • After 240 days, a flat 20% premium is applied.

You can also customize or remove this discount based on your needs. For a more detailed guide, please see Far-Out Prices.

Safety Minimum Price

(Applied to both STR and MTR) The Safety Minimum Price ensure that your minimum nightly rate never drops below a certain threshold.
  1. This is calculated based on last year's data, averaging ADR over a 3-week range (+/- 1 week). Holidays match the exact ADR from last year.
  2. Percentage value accounts for inflation. For example, 110% means a 10% increase, and 90% means a 10% decrease.
  3. The Safety Minimum only applies to dates that had a booking last year.
You have the option to remove,  or change the minimum price set for this. For a more detailed guide, please see Safety Minimum Price.