It depends on one’s local market, their costs and what kind of guests they are trying to attract. If I wanted to attract a temporary worker or for the right temporary worker, I might offer 40% off. I’m not actively looking for that though. There is a local “In town suites” extended stay hotel less than mile from me. They have a queen bed with kitchenette for $200 a week. My place is nicer in many ways but it doesn’t have a kitchenette and I don’t want an extended stay using my kitchen.
In deciding on my discount I looked at an average of how much I make a week with my mostly one night bookings and what the pros and cons were of no daily cleaning vs everyday utility use and wear and tear. I no longer feel obligated to keep my entire home spotless since there is not guaranteed access to the home. I also have my maximum stay set at 5 days so it forces anyone interested in a longer stay to contact me. It’s probably preventing long-termers from seeing me in a search but I don’t want longer instant booking. So my monthly rate is 29% discounted. I offered one fellow I liked $25 cash per night if he booked more than two weeks. He came back to town and asked for one night at that rate. UH, NO. Luckily the room was booked anyway but if he contacts me again I’ll have to have a chat with him about why that special rate is only for a longer stay.
I’m rambling but the point is, I could see many situations where 40% off a daily rate makes sense.