Unsold nights close to arrival lose all value once the date passes, which makes last-minute discounting tempting. The question is where it helps and where it simply gives away revenue.
Discount with a reason
Before lowering price, check whether booking pace for that date is genuinely behind. A night that is empty 5 days out may be normal for a market with short booking windows.
When a discount makes sense
- Pace for the date is behind both last year and the market.
- Stay restrictions have already been reviewed and are not the cause.
- The discount is limited to the nights and properties that need it.
When to hold
- The date still has strong demand signals, such as events or high market occupancy.
- The property is in a premium segment where guests book late but at full rate.
- Cheaper pricing would undercut stays you have already sold.
Decide in advance
| Days before arrival | Pace behind target | Pace on target |
|---|---|---|
| 14 to 8 | Review stay rules, then small rate test | Hold |
| 7 to 3 | Targeted discount on affected nights | Hold |
| 2 to 0 | Floor-limited discount | Hold or raise if demand is strong |
Last-minute pricing works best as a targeted tool, not a portfolio-wide setting.