Hosting a short-term rental on Airbnb is filled with opportunities. One such unique benefit is Airbnb’s non-refundable discount. With this discount, hosts have a special opportunity to lock in more bookings and reduce guest cancellations. This guide covers what exactly Airbnb’s non-refundable discount is, why you want to use it, and how to set it up within Host Tools.
Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!
What is a non-refundable discount?
First things first: what is Airbnb’s non-refundable discount? In short, it’s an option for Airbnb guests to book a property at a lower rate alongside a stricter cancellation policy. Basically, a guest can choose to rent a home for less money, but they won’t get a refund if they cancel the reservation.
How does it work for guests?
When a guest goes to the checkout page, they’ll see two booking options. Option #1 is the standard booking rate alongside the host’s normal cancellation policy. Option #2 is the discounted rate and the non-refundable cancellation option.
Why offer a non-refundable rate on Airbnb?
There are some strong arguments for offering a non-refundable rate on Airbnb. For one, it has the potential to lower your cancellation rate. Guests who booked knowing that they’ll lose money if they cancel are far less likely to not show up because of trivial reasons. Second, the lower rate can be appealing to many travelers. For a guest who is 100% committed to their travel plans (say they’re traveling for a family wedding or other big event), the discounted rate can be particularly attractive when they know with certainty they won’t be canceling.
Further, you don’t need to make your cancellation policy black and white for every booking. Instead, the non-refundable options allow guests to choose what type of policy works best for them. This type of autonomy is actually attractive to a wider array of guests, and ensures you aren’t alienating one type of traveler or the other.
How much should the discount be?
The typical discount rate is 10%. Of course, you’re able to set it to whatever works best for your individual booking strategy.
Does the discount work on other platforms?
No, the Airbnb non-refundable option is unique to Airbnb. When you set it up (as outlined in the next section), the discount will only apply to properties listed on Airbnb. It will not show up on other third-party listings or your direct booking website.
How to set a non-refundable discount on Airbnb with Host Tools
Setting up your Airbnb non-refundable discount is easy. Just follow these simple steps:
- Click your profile picture in the upper right-hand corner and choose Settings.
- Go to Settings > Channels and click Airbnb next to the listing you want to update.
- Then, scroll to the Non-refundable discount field.
- Enter a percentage from 0 to 99 (for example, 10 for 10% off).
- Click Save.
For more information on setting up the Airbnb non-refundable discount, read our Help article here.
FAQ
What is Airbnb’s non-refundable discount?
Airbnb’s non-refundable discount allows guests to book a property at a lower rate in exchange for agreeing to a strict cancellation policy.
How much is the Airbnb non-refundable discount?
Typically, Airbnb’s non-refundable discount is 10%. However, hosts can choose to set the discount to whatever they see fit for their business.
Can I use a non-refundable discount on other booking platforms?
No. The non-refundable discount is unique to Airbnb and will not show up on other platforms.
Final thoughts
Airbnb’s non-refundable discount is another option to add to your toolbox. Implementing a non-refundable discount is a great way to give browsing guests another reason to book with you over your competitors. Allowing a guest to choose between prices and cancellation policies makes your home more appealing than your competitors. Catching this wider array of guests helps you score more bookings and ultimately earn more money. It’s a win-win for hosts and guests!
Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!
