Glossary · Pricing

Price floor

Price floor · definition
  • A price floor is the minimum nightly rate you'll accept regardless of demand — the safety rail that stops dynamic pricing from selling nights below your worth-it threshold.
  • Category: Pricing

How to set it

Add up the marginal cost of a stay — cleaning you absorb, utilities, wear, platform fees — plus the minimum profit that makes hosting worthwhile. Below that number, an empty night genuinely beats a booked one.

Floors and last-minute dips

Automated tools discount approaching unsold dates; the floor is what keeps "filling the calendar" from turning into working for free.

Part of the Stays short-term rental glossary.

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