Glossary
Length-of-rent (LoR) discount
A discount structure where the per-day rate drops as the rental duration crosses defined breakpoints (3, 7, 14, 28 days) — incentivising longer bookings and lifting average length of rent.
Length-of-rent discounts are tiered per-day rates: the longer the booking, the lower the rate at each tier. Standard breakpoints are 3 days, 7 days (the weekly rate), 14 days, and 28 days (the monthly rate). At each step the per-day price drops noticeably — a 14-day rental at the 2-week tier often runs 20-30% less per day than a 3-day rental at the daily tier, because the longer booking spreads the fixed overhead per rental over more days.
The strategy is built around lifting Average Length of Rent (ALR), which is one of the strongest levers on utilization and on profit per booking. Each marginal day in a long rental adds variable cost only (fuel, wear), not fixed cost (handover labour, cleaning, paperwork), so the operator can afford a steeper discount on those marginal days and still grow contribution margin.
In renviq, LoR tiers are part of the tariff template — each tier carries a minimum day count and a per-day price. The pricing pipeline picks the best tier for the booking length, and the quote breakdown shows the tier that was applied, so operators can audit and tune the structure based on conversion data rather than guesswork.