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! After adjusting for seasonality and neighborhood occupancy, four default price adjustments are applied:
Last Minute Discount
Guests love last-minute deals! To ensure bookings while maximizing revenue, we apply a default last-minute discount.
Discount:
- 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.
-
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
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.
Occupancy-Based Adjustments
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
For bookings far in advance, we apply a premium so you can maximize earnings from early reservations.
Discount:
- The premium dynamically adjusts based on market trends.
- The earliest start is 60 days from today.
- The maximum premium is capped at 20%
- 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.
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