Cash discount for hotels?

It's common in some places. A cash payment saves the fees that the credit card company charges, and has the cash available immediately.

There are also some vendors who take advantage of cash payments to avoid paying income tax. Or so I've been told.

I do know vendors here who give discounts for cash (RSE gives discounts for non-credit card payments, for example) to avoid the 3 - 5% or more the credit card companies collect.

Some places will also give discounts for multi-night stays. Less maintenance (i.e., not having to change the linens or deep clean the room) means lower costs for the vendor.

In 2017 in Venice I was offered a significant discount if I paid cash. I think it was 10-15%, so we had cash in hand ready to pay for a 1500Euro stay. My math isn't perfect, but I'm pretty sure that's more than enough to cover credit card fees. I sometimes wonder if tax avoidance is a national sport in Italy.

In June in Scotland, our B and B was cash only. It was a small business that didn't have electronic payment options.