Airbnb landlords often offer discounts to attract guests. It can attract new guests or incentivize existing ones. Discounts must be weighed against their costs.
Discounts should be weighed against their expected revenue. If you expect more business from people who wouldn’t book without the discount, offering a small discount on stays of multiple nights may make sense, but the opportunity costs may exceed the revenue increase. Offering too steep a discount may attract “deal seekers”—people who want the lowest price regardless of quality—which could damage your reputation and lower market prices.
First, determine who you want to attract, then decide if offering discounts makes financial sense. Remember that other strategies, such as increasing visibility through advertising, may yield longer-term benefits than short-term discounts. However, creating unique experiences that set your property apart will likely yield higher returns than price cuts alone.