Should you offer a discount for booking direct? How much?

On a $1,000 stay with a 15.5% booking fee, you can give 10% off for booking direct and still keep $28.60 more.

The short answer: Yes, a small direct-booking discount is worth it. On a $1,000 stay with a 15.5% booking site fee, you can give up to about 13% off on your own website and still keep as much as you would on the booking site. A discount of 5% to 10% is the range most guides use, and a free perk such as early check-in costs you almost nothing. Show the offer on your own website, your Google profile and in your rental, where you control the message.

You have a website. A guest finds you on a booking site first, likes the place, and then wonders if they can get a better price from you. This is the moment a small offer can win the booking.

The question every owner asks is: how much can I give away, and still come out ahead? Let's do the maths.

Can you offer a discount for booking direct?

Your own website is yours, so your prices and offers are your call. One practical note: booking sites set their own rules for what you can say inside their messages. Airbnb's Terms of Service limit hosts from steering guests off Airbnb, and host-software companies read that as covering offers sent in Airbnb messages. That affects your Airbnb listing, not your website.

So the easy way is to show your offer where you control the message:

• On your own website: "Book direct and save"
• On your Google Business Profile and social pages
• On a card or a note inside the rental
• In emails to guests who already booked with you directly

Each site has its own rules and they change, so it is worth a quick read of the terms of every site you list on.

How much discount can you give and still earn more?

Take a $1,000 stay. On Airbnb, with the single fee of about 15.5% that most hosts pay (Airbnb), you receive $845. On your own website, a normal US card payment costs about 2.9% plus 30 cents (Stripe). Here is what you keep with each discount:

• No discount: you keep about $970.70, which is $125.70 more than on Airbnb
• 5% off ($950): you keep about $922.15, which is $77.15 more
• 10% off ($900): you keep about $873.60, which is $28.60 more
• 15% off ($850): you keep about $825.05, which is $19.95 less

So the break-even point is about 13%. Cleaning fees and taxes are not in these numbers, and your own fees may differ, so check them against your own bookings with our fee calculator.

A good rule: keep your discount at 10% or less. You still earn more than on the booking site, and the guest still feels they got a deal.

Is a perk better than a discount?

A percentage off takes money out of your pocket. A perk can cost you almost nothing. A hotel-industry column makes this point: free early check-in or late check-out can win direct bookings, because guests value them and the cost to the owner is small (Hotel Online, 2018). It is written for hotels, so it fits rentals only when your turnover schedule allows it.

Ideas that vacation rental guides suggest:

• 10% off for returning guests who book direct
• A free night after several stays
• Free early check-in after a second stay
• A welcome gift, or a "book direct and save" note in the welcome pack

Both guides mention 10% as an example, and neither shows data on what works best, so treat it as a place to start, not a rule.

How do you pick your discount?

• Start at 5%. It is easy to raise, and hard to take back.
• Add a perk, not more percent, for busy weeks when you do not need the booking.
• Use a bigger offer for low season, when an empty night earns nothing.
• Try it for two months, and watch how many bookings come direct.
• Keep it simple. One clear offer beats three confusing ones.

Make the offer easy to see

An offer nobody sees does nothing. Put it near the top of your booking page, next to the price: "Book direct and save 5%." Then make the next step simple: dates, price and a Book button on one screen, that works well on a phone.

That is what a direct booking website is for. Launch Pad gives you a booking website synced with your booking tool, with payments on Stripe. It is $999 to set up, ready in 7 working days or it is free, and you pay the other half only when you go live.

Want more ways to get guests booking you? Read how to get direct bookings without paying for ads, or see how much Airbnb really takes from you.

Common questions

How much discount should I offer for booking direct?

Start with 5%, and keep it at 10% or less. On a $1,000 stay with a 15.5% booking site fee, you still keep more than on the booking site up to about 13% off. Guides often use 10% as an example.

Is a discount or a perk better for direct bookings?

A perk often costs you less. Free early check-in, late check-out or a welcome gift can win a booking without taking money off the price. Use a discount in low season, and a perk in busy weeks.

Can I offer Airbnb guests a discount to book direct?

Your own website is yours, so you can set any price and offer you like there. Airbnb's own rules cover what you say inside Airbnb, and its Terms of Service limit steering guests off the platform, which can put your Airbnb listing at risk. Showing the offer on your website, your Google profile and in the rental keeps it in your hands.

Do I need a website to offer a direct booking discount?

Yes. Guests need a place to see the direct price and pay. A booking website that works on a phone and takes card payments is the base of any direct booking offer.

Sources and helpful links

• Airbnb: how host fees work — the 15.5% single fee
• Airbnb: Terms of Service — the rules for hosts, in Airbnb's own words
• Stripe pricing — card fees on direct bookings
• Hotel Online: Discounting is for dummies, part two — why perks can beat discounts (hotel-focused)