Enter your average booking value, the loyalty discount you're offering, and how many repeat bookings you expect the scheme to generate over the period. The tool compares the cost of the discount against the OTA commission you'd otherwise pay if those guests had booked through a platform instead.
A loyalty discount reduces your rate per booking, but if it successfully pulls a booking away from an OTA rather than losing it to a competitor entirely, you keep the commission you'd otherwise have paid. As long as your discount is smaller than the avoided commission, the scheme is net positive on a pure numbers basis.
Repeat guests typically cost less to serve (fewer questions, know the property, often book more confidently) and are more likely to leave positive reviews and refer others — value this tool doesn't capture directly but which strengthens the case for a well-run scheme.
A flat discount for any returning guest is simple to administer and communicate. A tiered scheme (increasing benefit with number of stays) can drive stronger long-term loyalty but adds administrative complexity — weigh this against your booking volume and CRM capability.
The scheme only works if you can reliably identify repeat guests at the point of booking — through a simple email-based loyalty list, a booking engine account system, or manual recognition for smaller properties with lower volumes.
This calculator provides estimates based on the figures you enter and does not capture longer-term reputational or referral value. JWBIZ Ltd accepts no liability for pricing decisions made on the basis of this tool.