In this article
A 10% discount for booking direct still leaves you $28.60 ahead of Airbnb on a $1,000 stay.
The short answer: The biggest discount is the one where you keep the same on your own site as on the booking site. On a $1,000 stay with a 15.5% booking site fee and card fees of 2.9% plus 30 cents, that is about 12.9% off. Any discount below that leaves you better off booking direct.
Offering a discount for booking direct is easy to say and hard to price. Too small and nobody notices. Too big and you would earn more on the booking site. There is one number in between, and you can work it out.
What do you keep on a booking site?
Start with the price a guest pays there, before taxes: $1,000. Airbnb's single host fee is about 15.5% (Airbnb). You keep $1,000 × (1 − 0.155) = $845.
What do you keep on your own site?
A US card payment costs about 2.9% plus 30 cents (Stripe). With no discount, you keep $1,000 × 0.971 − $0.30 = $970.70. That is $125.70 more than on the booking site, before you give anything away.
How big can the discount be?
Set the two amounts equal and solve for the discount. In words: take the amount you keep on the booking site, add the 30-cent card charge, divide by what is left of the price after card fees, and see how far below the full price that is. On the numbers above, it comes to about 12.9%.
- No discount: you keep $970.70, which is $125.70 more than the booking site.
- 5% off: the guest pays $950 and you keep about $922.15.
- 10% off: the guest pays $900 and you keep about $873.60, which is $28.60 more than the booking site.
- About 12.9% off: you keep $845, exactly what the booking site pays you.
A guest who would never have found you on a booking site is worth even more. You keep the stay, and the discount costs you nothing you would have had.
What if your booking site fee is different?
The lower the fee, the less room you have. Here is the biggest discount for a $1,000 stay at three example fees, with the same card fees on your own site:
- 8% (Vrbo is reported at about 8% in all): about 5.2% off.
- 15% (Booking.com is often about 15%, but it varies): about 12.4% off.
- 15.5% (Airbnb's single fee for most hosts): about 12.9% off.
Use the rate on your own statements for each site. These are examples, and rates change.
Should it be a discount, or a perk?
A free perk, such as early check-in, a late checkout or a welcome basket, usually costs you less than money off, and it can feel like more. You can do both: a small discount and a perk. Our post on offering a discount for booking direct has ideas, and how to turn past guests into repeat bookers shows who to offer it to first.
A caution on where you say it. Airbnb's terms limit steering guests off Airbnb, which can put your listing at risk. Show your offer on your own website, your Google profile and in the rental, and read the terms of every site you list on.
Want somewhere to send guests? Your own booking website is ready in 7 working days or it is free, and you pay half to start and the other half only when you go live. Pay your first installment, or compare every plan on the pricing page.
Not sure what is possible for you? Ask us
On a call, we will:
- Work out the discount range that suits your own fees, stays and guests.
- Look at where your offer would be shown to past guests, and what to say.
We will tell you honestly what is realistic. We do not promise results, because nobody honest can.
Common questions
- How much discount can I offer for booking direct?
- It depends on the booking site's fee and your own card fee. On a $1,000 stay with a 15.5% booking site fee and card fees of 2.9% plus 30 cents, up to about 12.9% off still keeps you as much as on the booking site. Many guides suggest starting with 5% to 10%.
- Is a direct booking discount worth it?
- Often. At 10% off on a $1,000 stay, you keep about $873.60 direct against $845 on a booking site. A guest who would not have booked at all is worth even more.
- Can I tell Airbnb guests about my direct discount?
- Airbnb's terms limit steering guests off Airbnb, which can put your listing at risk. Show the offer on your own website, your Google profile and in the rental, and read the terms of every site you list on.
- What fee should I use for Booking.com or Vrbo?
- Use the rate on your own statements. Booking.com varies by country and programme, often about 15%. Vrbo is reported at 5% plus 3% payment processing, about 8% in all.
Sources and helpful links
- Airbnb: how host fees work — the single fee
- Stripe pricing — 2.9% plus 30 cents for a US card
- Launch VRO discount calculator — try your own numbers
