Calculate group displacement before you quote
Compute whether a group block should be accepted, rejected, or reshaped based on displaced transient value.
140-room hotel. Forecast transient demand: 128 rooms at $209 ADR. Group request: 45 rooms at $155. Meeting contribution after variable costs: $3,200. Should the group be accepted as requested? Displacement = accepted group value + ancillary contribution minus the transient value likely displaced by the block. Rejecting the group because $155 is below $209, or accepting because 45 rooms looks like safe base, without counting how many rooms are actually displaced. Find available headroom before the group Capacity 140 rooms - transient forecast 128 rooms = 12 rooms of headroom. The first 12 group rooms are likely incremental because transient…
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