Confused about how long term discounts are figured when smart pricing is on

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Stacey23
Level 9
Tampa, FL

Confused about how long term discounts are figured when smart pricing is on

Hi. When I have smart pricing on, does the weekly/monthly discount potentially come off of my minimum nightly price, or will it discount it down to that minimum? It seems to be discounting below my minimum nightly rate, but I can't tell for sure. Can't seem to find a clear explanation on the site. Anyone know for sure how % discounts are figured in conjunction with smart pricing? Thanks!

1 Best Answer
Arinna0
Level 4
Edmonton, Canada

Yeah, it discounts it to lower than the smart price minimum.  I ended up accepting a few reservations that were well below my minimum. 

I like the smart pricing, but in conjunction with long term discounts, it is not in our favor.

 

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4 Replies 4

They take all the nights the guest is requesting at the Smart Price set on the day of the booking, add them together and then apply the percentage discount.  

 

So if all of your Smart prices fall to the minimum amount for the entire stay that the guest books, when the discount is applied, the price will be Lower for this longer term booking than your minimum nightly price.  

 

 

Victoria57
Level 10
Strathpeffer, United Kingdom

@Stacey23 I have not yet found an good reason to use Smart Pricing, it just drives prices down.

@Victoria57 @Stacey23 - I completely disagree.  I have Smart pricing and my booking price, on average, is up almost $15/night over last year and I am booked 94% of the time. Having Smart Pricing turned on has given me far more freedom and less stress to make sure I have the price "right" at any given time.  I used to obsess over it, adjusting it constantly, now I don't have to do that.  

 

That being said, it's not perfect and I do make changes.  I am not willing to drop my weekend prices to the Smart Price decisionmore than 6 weeks in advance (this is a college town and as the team wins more, the bookings go up which can't be deduced from last year's history).  This means I have to override the price on occassion.  Also, I try to keep the price high over the holidays because, frankly, I don't actually want a guest staying with me on Thanksgiving, but if someone really needs a room, I'm not going to just block it and make them pay Hotel price.  So I artifically inflate my price on those days to be less competative.  

 

@Victoria57 - you've been very vocal about not liking Smart Pricing, but it does work for some of us - very, very well.  I'm sorry you are so disappointed in it but counseling everyone to turn it off is not a very balanced approach.  

Arinna0
Level 4
Edmonton, Canada

Yeah, it discounts it to lower than the smart price minimum.  I ended up accepting a few reservations that were well below my minimum. 

I like the smart pricing, but in conjunction with long term discounts, it is not in our favor.