How are discounts calculated?
The rental price of each night booked at the property is determined by the Host of the property.
For every property there are also five discount levels. The first level is the initial price, but the others contain discounts set by the Host. The discount on each following discount level is bigger than on the previous one. The discount levels are reached one after another as a certain number of nights at the property get booked by the Guests. This ensures that the discounts are provided only after the Host receives a certain number of booked nights.
The maximum number of nights that can be booked at each property is 100. This number is divided into 5 parts, 20 nights in each. These nights are not related to any particular calendar dates and do not depend on prices. Each next discount level applies only after any 20 nights at the property get booked.
Each property listing has a limited term of validity. When it expires, our system automatically counts overall number of nights booked at the property during the offer period and determines the final discount and the final prices applicable to all bookings.
People who booked their nights at the initial price or on low discount levels are also entitled to discount when the next discount levels apply.
The Host is renting out his villa on Diwerent at $100/night. The discount levels are set at 10%, 20%, 30% and 40% discount.
At first the villa receives 2 bookings, each of them 10 days long. Dates of these bookings do not matter.
Since these two bookings together cover 20 nights at the villa, the first discount level automatically applies, and so all bookings made at this villa will receive a 10% discount and will cost $90/night instead of $100/night. If the villa receives more bookings for any 20 nights, the price will reduce to $80/night, and so on.
Those two people who made their bookings at the initial price will get the same discount as everyone at the end of the listing. Extra payment will be returned to the Guests through cashback, and the rest will be paid to the Host.