We consider a situation in which a risk-averse manufacturer decides whether to develop advance booking discount program or not if he procures raw material via forward contract and spot market. If the manufacturer adopts this program, he first decides the optimal discount rate, and then determines the order quantity of raw material. During the selling season, the manufacturer can trade raw material in a spot market. Our study shows that the manufacturer does not adopt discount strategy when demand variation is relatively low, otherwise, he should adopt discount strategy. In the latter case, the optimal discount price decreases in the demand variation coefficient, total market demand, coefficient of risk aversion and correlation coefficient of market demand.