DA
Revenue management methods
Displacement analysis
Whether a group is worth the transient business it displaces.
accept a group if the group profit (rooms + food and beverage + services − wash) > the profit of the displaced transient demand
How to read the metric
Accounts for both the group's ancillary spend and the nights before and after the peak.
Worked example
The group brings 2.1 M ₽ and displaces 1.6 M ₽ → accept.