I opened in 2007, just before the crash. During the 2 years of paperwork and remodeling prior to opening, 2 new hotels were built and opened for business. Another (this town's second B&B) opened before I did, getting a head start in part because of the lawyer I hired to straighten out the health department. Then a decree came from on high at the university down the street that any department wishing to be reimbursed for business guests would have to house them in the student union. And this is not a touristy town in a state not known for tourism.
Sooo, I have never had a decent occupancy rate. I'm fortunate in that I have my savings to supplement what I don't pay myself and the B&B pays for utilities, property tax, business insurance, etc. I really hate that this makes my enterprise a "lifestyle" instead of a "real" business because I am running it in a professional way.
That being said, when I get a guest, whether business or some other reason who wants to stay a week or more, its not uncommon for me to discount 40-50%. That is about the rate they could get at one of the motels. My long-term (that is 10-15 days) guests are in rooms that for the most part would otherwise be empty and earning $0. Some of my nicest and most interesting guests have been the long-term ones. Even at that level of discounting, people who are looking for a place to stay for a month or so balk at the rate, so, since 2 weeks is about the most I feel comfortable with, I think I have priced things right for this market. As Maddie says, "Your mileage may vary"
The majority of my guests are one nighters, and I find myself cooking the same breakfast over and over, so the long-termers also give me an opportunity to stretch my cooking skills. I also love changing sheets every 4-5 days instead of every darn day..