Automated Discount Calculation Engine for Reservation Systems
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Solution Overview
Problem
Conventional reservation discount/award programs face issues such as customers using non-eligible payment methods, lack of awareness of discounts, human error in discount calculations, and inefficient tracking of rewards, which can cannibalize merchant margins and lead to inaccurate reward distribution.
Innovation Solution
A system and method for automatically calculating discounts using a reservation system and payment card processing system, where a calculation engine compares reservation data with transaction data to determine eligible discounts, issuing credits to customers and debits to merchants, and allowing customers to receive rewards in forms other than cash back.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual discount calculation is used by merchants, then flexibility in reward distribution is maintained, but human error in calculation and data entry increases
Solution Approach 1:
The patent replaces the manual mechanical calculation process with an automated electronic system. The calculation engine automatically computes discounts by comparing transaction data with reservation file data, eliminating human calculation and data entry errors while maintaining precision in reward distribution.
2Reliability
If discounts are provided after dining, then customers are rewarded for using eligible cards, but merchant margins are cannibalized and customers are not aware of the incentive beforehand
Solution Approach 1:
The system performs preliminary action by providing discount information to customers at the time of reservation, before the dining experience. This allows customers to be aware of the incentive beforehand and make informed decisions about using eligible cards, while the actual reward distribution is accurately processed after transaction verification.
3Adaptability or versatility
If customers can use non-eligible payment methods, then payment flexibility is improved, but discount program integrity is compromised
Solution Approach 1:
The system implements feedback by automatically verifying payment method eligibility through real-time comparison of transaction data with reservation file information. The calculation engine confirms whether the used payment card matches the eligible card on file, providing immediate feedback on discount eligibility while maintaining program integrity.
4Productivity
If manual tracking of discounts is performed, then merchant control over reward distribution is maintained, but tracking accuracy and efficiency decrease
Solution Approach 1:
The system enables self-service by automatically tracking and processing discount rewards without requiring manual merchant intervention. The calculation engine independently compares transaction data with reservation records, calculates eligible discounts, and processes reward distribution, improving both efficiency and accuracy of tracking.
Data Source
AI summary
System, apparatus and methods for automatically calculating a discount for a customer offered by a merchant through a reservation system. In one example, a reservation file is provided and contains data relating to a reservation, and transaction data relating to payment card transactions is accessed. One or more elements of the transaction data are compared against one or more elements of the reservation file to determine a match; and based on the match, the discount is electronically calculated based one or more one or more elements of the transaction data and one or more elements of the reservation file. In this way, the discount can be accurately calculated in an automatic fashion. In another embodiment, the customer may opt for a non-cash discount such as airline miles, points, or other rewards, in which case the customer may be provided with such rewards in an amount proportional to the discount.