Set your standard rate and monthly booking volume, then build your advance purchase discount tiers with your estimated share of bookings in each. The tool works out the discount given away, the blended rate you actually achieve, and how that compares to selling everything at standard rate.
| Tier | Days Before Arrival | Discount (%) | Share of Bookings (%) | Bookings | Rate Achieved | Discount Given |
|---|
An advance purchase discount is usually justified by earlier, more certain cash flow and lower marketing cost per booking, not by demand alone. If a tier isn't shifting genuinely uncertain occupancy earlier, it may just be giving away rate for free.
Advance purchase rates are commonly paired with non-refundable or restrictive cancellation terms. That trade-off, lower rate for locked-in revenue, is usually what makes the discount worthwhile rather than the early payment alone.
A generous top discount tier looks fine in isolation but can pull your blended ADR down more than expected if a large share of bookings land in it. Review the actual share of bookings by tier periodically, not just the headline discount percentages.
If a discount genuinely brings in bookings that wouldn't otherwise happen, the real picture is better than this tool shows, since it assumes the same volume either way. Track actual booking pace before and after introducing a tier to judge that separately.
This calculator provides estimates based on the figures you enter. JWBIZ Ltd accepts no liability for pricing decisions made on the basis of this tool.