How do you price longer stays without losing money?

HostStack Team · Team discussion starter

HostStack Team — Team discussion starter. General information, not legal, tax or financial advice.

Price a longer stay from its expected revenue and costs, not just a percentage discount on a nightly rate. Fewer changeovers may save work, but utilities, mid-stay cleaning, linen, maintenance and payment costs still need an allowance. Confirm headcount and how the property will be used before choosing assumptions.

Hypothetical GBP example: a 28-night stay is quoted at £2,100 accommodation plus £60 final-cleaning revenue, or £2,160 total. Assume £108 platform/payment costs, £240 utilities, £120 for two mid-stay cleans, £60 final cleaning/laundry and £52 consumables. These illustrative variable costs total £580, leaving £1,580 contribution BEFORE fixed costs and tax. None of these numbers is a standard provider rate.

Suppose the same hypothetical month has £1,200 allocated fixed costs. The remaining £380 is only an illustrative operating balance before tax and any costs not included. On these assumptions, average contribution is £395 per week; costs do not necessarily arrive evenly each week. A calendar month is not always 28 nights, so calculate the actual dates rather than multiplying a weekly quote by four.

Compare the offer with a realistic alternative booking pattern, allowing for vacant nights and additional changeovers. That opportunity cost is uncertain, not guaranteed lost revenue. Also consider cash timing, cancellations and whether an extension blocks higher-value dates.

State cleaning, utilities, payment, cancellation and extension arrangements clearly. Longer stays can raise legal-status questions: do not promise that a particular duration prevents tenancy rights. Take appropriate advice where the arrangement is uncertain.

Which longer-stay assumption changed most between your quote and actual costs? Please use anonymised figures or label your example hypothetical.