Determine the value of potential group business
Below outlines how you can use the system to review and analyze historical and current data to assess the value of potential group business. By evaluating displacement value, the system recommends profitable pricing for groups.
The group request module analyzes displacement and provides insights into potential group revenue, ancillary revenue, total costs, displaced revenue, and profitability. You can view the recommended group rate to make informed decisions about accepting or rejecting group offers based on their revenue impact.
This video will assist in understanding group requests:
Prerequisites
The below outlines what is required before you can use the system to analyze the group requests:
Configured group pricing strategy in strategy builder.
Understanding of your property's cost structure.
Knowledge of ancillary revenue opportunities.
Set up group pricing strategy
To set up a group pricing strategy, follow the steps below:
From the strategy menu on the left navigation, click Strategy Builder.
Verify there's a group pricing strategy or set one up.
To view the segments setup, click the pencil
icon.To view an individual segment, click the pencil
icon from the modal.To create a new segment strategy, click the plus
icon and follow the instructions for strategy builder.
📌 Note: Your property's servicing costs and ancillary revenue profit margins are updated during onboarding based on historical trends. The system uses these elements to evaluate groups. Contact the support team if you have questions about this area.
Create and evaluate a group request
Follow the steps below to create and evaluate a group request:
Click Group Request in the group menu on the left navigation.
Click New.
Select the hotel to evaluate.
Select the status of the group, choose from tentative, accepted, rejected or simulation.
Select the segment of the group.
Enter a name for the group request.
Select the arrival date for the group.
Enter the number of nights the group will stay.
Click Add to assign the relevant room type and enter the number of rooms for each night.
To apply the same number of rooms to each night, click Apply All.
Repeat if including different room types in the evaluation.
Click Next.
Click Revenue Stream and enter profit percentage and total amounts for non-room revenues such as food and beverage, meeting space or spa.
Click Next.
Add costs. This is an optional step.
Follow the steps below to add costs to your group request:
Click Group Request in the group menu on the left navigation.
Click Add to add a new cost.
Select the cost type from the dropdown. Choose from:
Commission and enter the commission amount to the room rate.
Enter complimentary rooms:
Fixed: Set amount for the group regardless of pickup and enter the number of complimentary room nights.
Select the room type from the dropdown.
Ratio: Based on room pickup enter the number of complimentary room nights.
Select the room type from the dropdown.
Enter the number of rooms booked as required to earn the complimentary room nights.
Select the discount. Choose from:
Fixed and enter the discount percentage or select the room type from the dropdown.
Ratio:
Enter the discount percentage.
Select the room type from the dropdown.
Enter the number of rooms to discount.
Enter the number of rooms booked as required to earn the discounts.
Repeat for additional cost types if needed.
Click Save.
Click Submit to begin the evaluation.
Manage existing requests
To view all requests performed and saved previously follow the steps below:
Click Group Request, on the left navigation.
Click Search.
You can edit, re-evaluate, or delete created group requests.
Review evaluation results
Once the system evaluates the group, you'll see details showing how accepting or not accepting this group will affect your property's anticipated revenue over the dates.
The analysis includes revenue displacement with group revenue, ancillary revenue, total cost, displaced revenue, group profit, and the recommended group rate.
With this information, you'll know the profitable room rate. Quoting above this rate increases profitability, whereas quoting lower displaces higher value business and ultimately decreases the revenue that your property can achieve without the group.
Troubleshooting
Below will outline the most common troubleshooting issues:
Evaluation not generating results Verify that your group pricing strategy is properly configured and activated in Strategy Builder.
Recommended rates seem incorrect Review your cost structure settings and ancillary revenue configurations. Contact support if servicing costs need updating.
Can't save group request Ensure all required fields are completed, including arrival date, number of nights, and room allocations.
Frequently asked questions
Below will outline the most common frequently asked questions:
How does the system calculate displaced revenue?
The system analyzes historical booking patterns and current demand to estimate the revenue that would be lost by accepting the group instead of individual bookings.
Can I modify a group request after submission?
Yes, go to the Group Request tab, click Search, find your request, and edit the parameters. You can then re-evaluate with the updated information.
What if actual group performance differs from the evaluation?
Use the actual results to refine your future group evaluations and update your ancillary revenue assumptions for more accurate assessments.
How often should I update my group pricing strategy?
Review your strategy regularly, particularly when market conditions change or after completing several group evaluations to incorporate lessons learned.