How to manage discounts in Booking Manager - LBM

Note: If you are editing discounts on the web version of Booking Manager see how here https://support.booking-manager.com/hc/en-us/articles/360002066992-Setting-the-new-discount-on-Charter-portal

Booking Manager allows you to setup charter discounts by yourself and lets you choose whether you want to add the discounts manually to reservations or to use a trigger so discounts are applied automatically depending on the trigger type.

Discounts can be added by both charter fleets and agencies. In case of agencies, additional discounts are added on top of the charter discount if the charter company allows it.

Opening the discount editor in Local Booking Manager

If you are using LBM you can edit your discount by going to:

Choosing Setup  > Discount types in your menu

Opening the discount editor in the Web version for charter fleets and agencies

Both Charter Fleets and Agencies can edit their discounts on the Web version by going to:

Settings (1) > Prices (2) > Discounts Editor (3)

Manipulating the discount rules

When you open a new discount by clicking on the "New" or "+" button, it will have Trigger type set to "No trigger" by default which means that the discount is not applied automatically to offers. This kind of discount is used to lower the price manually in situations where you are negotiating with clients.

In most other situations you will want to set a discount that will be applied automatically to calculations according to your commercial criteria. For that, you have 4 different trigger types available:

1. Service duration - applied if a charter lasts for a certain defined number of days
2. Reservation period - applied if a charter was booked in a certain period.
3. Service period - applied if charter is taking place in a particular period or it can be used for defining early booking discount
4. Last minute - used for last minute discounts within a certain amount of days of check-in

Each discount can be set to be valid only for certain boats, whether it excludes other discounts, or whether it is affected by a maximum discount or not.

The maximum percentage of a discount can be set globally for the entire system and it can be defined individually per boat as described in How to setup maximum discount on an individual boat . When you set the maximum discount on the boat, that will override the maximum discount set in Reservation settings.

How are the discounts added by the Discount Editor calculated?

With the new version, discounts entered by the Discount Editor are calculated and published with greater precision.

If we have two different discount percentages on a two-week booking, the system calculates the weighted average between the two discounts.

For example, we have two different discounts set as follows:
1) 10% from November 8 to November 15

2) 20% from November 15 to November 22

To calculate the discount on a 14-unit charter from 8 to 22 November, the formula would be as follows:

Average Discount (%) = ((U1 × D1) + (U2 × D2)) ÷ (U1 + U2)

U1 = number of units (e.g., days) in the first period

D1 = discount percentage for the first period

U2 = number of units (e.g., days) in the second period

D2 = discount percentage for the second period

(U1 + U2) = total number of units

So the calculation to be done is the following:

(7 × 10) + (7 × 20) = 70 + 140 = 210
210 ÷ 14 = 15%

If we want to calculate a discount on a charter of 11 units from 8 to 19 November, applying the same discounts as in the previous example, the calculation will be as follows:

(7 × 10) + (4 × 20) = 70 + 80 = 150
150 ÷ 11 = 13.636%

Note that this logic applies to discounts entered by the Discount editor, both on the local application and on the Web Version.

Adding a discount through Revenue Planning

Note: If you are editing discounts on the Revenue Planning of Booking Manager, see how to do it here: https://support.booking-manager.com/hc/en-us/articles/360002066992-Setting-the-new-discount-on-Charter-portal