How much do you need to increase the speed of booking to justify a discount?

Original speed of booking: Discount offered: New needed speed of booking: 0.2 0.2 0.26 Direct cost per room as % of Price: 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

x (discount offered)
0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 0.65 0.7 0.75 0.8 0.85 0.9 0.95 1

Speed W2 / Speed W1:

Example: Bookings until W0: Bookings done during W1: Speed of booking of W1: Original Price: Direct cost per room as % of Price: Direct cost per room: Direct Margin per room: Revenue generated W1: Direct margin generated W1: Discount on Price for W2: New Price: Direct cost per room: New Direct margin generated W2: Speed of booking W2: Bookings done during W2: Revenue generated W2: Direct margin generated W2:

1.308
300 60 0.2 180 0.15 27 153 10,800 9,180 0.2 144 27 117 0.26 78.46 11,298 9,180
4.00

Chart for multiplicator of original speed according as % of Price as stated in column E

Direct cost per room as % of Price + discount offered:

0.35
Multiplicator of original speed

3.00 2.00 1.00 -1.00 -2.00 -3.00 -4.00 Discount Given

y (speed W1 / speed W2)

0.21 0.23 0.24 0.26 0.28 0.31 0.34 0.38 0.43 0.49 0.57 0.68 0.85 1.13 1.70 3.40 #DIV/0! 3.40 1.70 1.13

of original speed according to direct cost rice as stated in column E

Discount Given

How much do you need to increase the speed of booking to justify a discount? Original speed of booking: Discount offered: New needed speed of booking: 0.2 0.2 0.25

x (discount offered) y (speed W1 / speed W2)

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 0.65 0.7 0.75 0.8 0.85 0.9 0.95 1.052631579 1.111111111 1.176470588 1.25 1.333333333 1.428571429 1.538461538 1.666666667 1.818181818 2 2.222222222 2.5 2.857142857 3.333333333 4 5 6.666666667 10 20

Speed W2 / Speed W1:

Example: Bookings until W0: Bookings done during W1: Speed of booking of W1: Original Price: Revenue generated W1: Discount on Price for W2: New Price: Speed of booking W2: Bookings done during W2: Revenue generated W2: Conclusion for all of us: We have to be extremely careful with the discounts we give out.

1.250
100 20 0.2 20 400 0.2 16 0.25 25.00 400

By the way; the factor between two consecutive numbers in the Y series is constant (before rounding), namely the 5th, 10th, 20th, or 40th root of 10 , which leads to a geometric sequence. For more information you can check out "Renard 0 numbers" on Wikipedia.

25

20 Multiplicator of original speed

15

10

onsecutive numbers in ding), namely the 5th, leads to a geometric can check out "Renard

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

0.75

0.05

0.15

0.25

0.35

0.45

0.55

0.65

0.85

0.9

Discount Given

0.95