Owner tests · 7 min read
Last-minute discount: the days decide who gets it
An Airbnb last-minute discount pays only when it fills nights that would stay empty, as guests who'd book anyway get the cut too. Keep it to the last few days, set your lowest price with room for it, and check it brings enough extra nights.
In short
- Guests who would book anyway get the discount too. That's its real cost.
- The days it covers decide how many guests get the cut: from about 1 in 4 to almost 9 in 10 of ours.
- Using pricing software? Leave room for Airbnb's cut in its lowest price, or 2 cuts can drop below it.
- A 10% cut needs at least 1 extra night for every 9 that would sell anyway.
In this article
- What is Airbnb's last-minute discount, and who pays?
- Why give a last-minute discount at all?
- Who books late in JB? More than you think
- What does a last-minute discount really cost you?
- How many days should your last-minute discount cover?
- Is your last-minute price already being cut somewhere else?
- Set up your last-minute discount so 2 cuts can't sink your price
- Is my last-minute discount actually paying?
- How we know this
- Questions owners ask
This guide is for owners of short-stay homes in Johor Bahru. The rules are Airbnb's, so they work the same in any city.
| What it is | A % off your nightly price for guests who book close to check-in |
|---|---|
| Who pays | You, the host |
| Days it covers | You pick them, counted back from check-in. Airbnb is adding 3 steps: 8 to 14, 2 to 7 and 0 to 1 days |
| Crossed-out price | Shows at 10% or more below your 60-day median price |
| Won't work with | Airbnb's Smart Pricing |
What is Airbnb's last-minute discount, and who pays?
Airbnb's last-minute discount is a % off your nightly price when a guest books close to check-in. You pick the %, and it comes off your price, so you pay for it. (Airbnb)
- When it applies: you pick how many days before check-in. Airbnb's guide says 1 to 28. (Airbnb) On 19 October 2026, our own listings used from 0 to 1 day up to 0 to 14 days.
- Airbnb's 3-step setting: Airbnb says it started rolling out 3 steps, each with its own %: 8 to 14, 2 to 7 and 0 to 1 days. (Airbnb) On 19 October 2026, our account didn't show them.
- What guests see: at 10% or more off your 60-day median price, Airbnb crosses out a higher price in search and on your listing. (Airbnb) Your 60-day median price is the middle of your prices for that date over the past 60 days. (Airbnb)
- What it can't do: it doesn't work with Smart Pricing, Airbnb's tool that sets your price each day. On Smart Pricing? Switch it off first if you want this discount.
Why give a last-minute discount at all?
Because an empty night is gone for good. It's like a packet of nasi lemak at the end of the day: sell it cheaper now, or throw it away.
The crossed-out price is the other reason. When we checked one of our listings on 5 October 2026, the 10% discount showed a higher price crossed out. We think guests spot a deal at a glance.
But it doesn't always show. On 19 October 2026, another of our listings had the same 10% on for that night. When we looked as a guest, without logging in, there was no crossed-out price.
Our guess: that night was priced above its 60-day median. Then 10% off can't take it 10% under the median, so no crossed-out price shows.
Who books late in JB? More than you think
Of our 821 Airbnb bookings with stays that fell between 1 January and 30 September 2026:
- 12% were booked on the day of check-in.
- 38% were booked 3 days or less before check-in.
- 87% were booked 28 days or less before check-in.
Late bookers tend to stay shorter. 47% of our bookings made 3 days or less ahead were for 1 night. For bookings made 4 to 28 days ahead, it was 23%.
Booking.com shows the same habit: 38% of our 228 bookings there came 3 days or less ahead. Airbnb's discount doesn't run there. So late booking isn't only Airbnb's discount at work.
Our guess: many of your late guests would book without a discount. Our pricing software, a tool that changes our prices each day, also lowered late prices on most of our homes in that time. So we can't prove it.
What does a last-minute discount really cost you?
The cost isn't the empty night you fill. It's the cut you give guests who would have paid full price.
Take Unit A, priced at RM200 a night, with a 10% discount:
- A guest who'd book anyway now pays RM180. You lose RM20.
- A guest who books only because of the deal pays RM180. That's RM180 in room money you'd never have had.
So you need enough extra guests to cover the RM20s. Here's the sum:
Extra nights needed equals discount % divided by the % you still keep
At 10% off you keep 90%, so it's 10 ÷ 90. That means at least 1 extra night for every 9 that would sell anyway. At 20% off, it's 20 ÷ 80: 1 extra night for every 4.
Try your numbers
How many extra nights does it need?
Unit A: RM200 a night. Pick the % off, and how many late nights a month sell even without a discount.
Room money only, before Airbnb's fee and cleaning. Rounded up to whole nights. A made-up example, not a real unit.
How many days should your last-minute discount cover?
The days it covers decide how many guests get the cut. Tap a choice to see how many of our Airbnb bookings it would have reached:
Pick the days
How many guests get the cut?
Each dot is about 1% of our Airbnb bookings, from the latest booker to the earliest.
Our 821 Airbnb bookings with stays from 1 January to 30 September 2026. Cancelled bookings left out. Some of these guests would have booked without a discount.
Our advice: start with 0 to 1 day, at 10%. Fewer guests who'd book anyway get the cut. For Unit A, only guests who book the day before or on the day pay RM180.
Why not 0 to 3 days? On 19 October 2026, 13 of our 16 listings with this discount on used that.
At 0 to 3 days, 38% of our bookings would have got the cut, against 24% at 0 to 1 day. So start smaller, and add days only if your check says it pays.
Is your last-minute price already being cut somewhere else?
Check 3 places before you add a discount on Airbnb.
Your pricing software. Ours lowered prices close to the date on its own, in a setting called Last Minute Pricing. Look for a setting like it in yours. Add Airbnb's 10% on top, and the cut gets deep.
Here's where our cheapest nights fell. We took the cheapest 5% of Airbnb nights on each of our homes, for stays under 7 nights between 1 January and 30 September 2026. 82% of them were booked on the day or the day before, against 23% of all those nights.
We think that's where both cuts could land at once.
Agoda. It has its own last-minute deal, set up apart from Airbnb's. (Agoda) If you list on other sites too, check each one.
Airbnb's other discounts. When a booking fits 2 of Airbnb's standard discounts, last minute is the one Airbnb drops. So a guest who books 7 nights, starting the next day, gets your weekly discount, if you have one. (Airbnb)
Set up your last-minute discount so 2 cuts can't sink your price
- Write down your numbers first. Note how many nights sell in the last few days before check-in, and the money from them.
- Try free fixes. Allow 1-night stays and same-day bookings. Late guests can't book what your settings block.
- Let only 1 place make the last-minute cut. On 14 October 2026 we set our pricing software's own last-minute cuts to 0%, and kept Airbnb's last-minute discount on.
- Leave room for Airbnb's cut in your lowest price. That's the floor your pricing software won't go under, and Airbnb's cut comes after it. For guests to pay at least RM160 after 10% off, set about RM178 (RM160 ÷ 0.9). Without software, check your price less 10% is still OK for you.
- Pick a check date. We'd say 8 to 12 weeks, in the same season if you can.
2 cuts on 1 night
Where should the lowest price go?
- RM200Unit A's price
- RM170Software's late price
- RM153Airbnb's 10% on top
The software stops at RM170, then Airbnb takes 10%: the guest pays RM153, under your RM160.
Made-up example. Leave room for Airbnb's cut: RM160 ÷ 0.9 = about RM178.
Is my last-minute discount actually paying?
Ask 3 questions on your check date:
- Did you get enough extra late nights? At 10% off, that's at least 1 for every 9 that sold this late before.
- Did the money from those nights go up, after the discount?
- Did you sell more late nights in total, or did guests who'd book early just book later?
If the answer is "no" or "can't tell", try a smaller % or fewer days before you add more.
How we know this
- Airbnb's rules: we read Airbnb's Help Centre and Resource Center pages on 19 October 2026, and linked each one where we use it.
- Our settings: on 19 October 2026 we opened the discount settings of 18 of our Airbnb listings. We changed our pricing software's last-minute settings on 14 October 2026.
- Our numbers: we counted our own Airbnb and Booking.com bookings with stays that fell between 1 January and 30 September 2026. Cancelled bookings are left out.
- What we can't tell: we didn't run a test with and without the discount. So we can't say how many late bookings it really added.
We checked Airbnb's pages on 19 October 2026, and things may change.
Questions owners ask
How do I add or turn off the last-minute discount on Airbnb?
Airbnb's guide says to open the Pricing tab in your listing's calendar, then More discounts, then Last-minute discounts. Set the days and the %. Check your pricing software too, as it may cut prices close to the date on its own.
Can a last-minute discount stack with other Airbnb discounts?
Only 1 of these applies to a booking: new listing, custom, length of stay, early bird or last minute. The top-rated guest discount can add on top of any of them.
Does the discount still work if no crossed-out price shows?
Yes, the guest still pays less. Airbnb ties only the crossed-out price to your 60-day median. We think you then pay for the discount without the pull of a visible saving.
Do guests learn to wait for last-minute deals?
We can't tell from our numbers. Our guess: a deep cut on the last day may teach guests that waiting pays. A small cut gives them less reason to wait.
Sources: The 1 to 28 day window, the 10% markdown rule and the Smart Pricing limit: Airbnb Resource Center, 5 ways to get last-minute bookings. The 3-step setting for 8 to 14, 2 to 7 and 0 to 1 days, which Airbnb's page (updated 2 September 2026) says started rolling out in August: Airbnb Resource Center, the right price for every season. The 60-day median and crossed-out prices: Airbnb Help Centre, why some prices are crossed out. Which discount wins when several apply: Airbnb Resource Center, combining discounts. The top-rated guest discount adding on top: Airbnb Help Centre, how discounts are applied. Agoda's last-minute promotion: Agoda Partner Hub. The menu path to set it up: Airbnb Resource Center. Our numbers: RoomGuru bookings with stays that fell between 1 January and 30 September 2026, from Hospitable: 821 on Airbnb and 228 on Booking.com. Cancelled bookings are left out. The RM prices are made-up examples. Simon runs RoomGuru, which has managed homes in Johor Bahru on Airbnb since 2023. Airbnb didn't pay for or check this article. This is general information, not financial advice.