- Always save room for your highest rated business
- If not calculate displacement to retain revenue
- Area occupancy , e.g. 68% = your projections 68% = 100%
- Last Moment bookings are distressed inventory, would not sell otherwise - pricing via RevPar, irrelevant - sell at cost plus
- Close out ONLY when 2 or 3 day stays are totally sold out
- High demand day - preceding and/or following day
- Focus demand stimulation on off peak periods
- Sales sells base + most important time periods to change occupancy
- Ads + promo, plan in advance when results would contirbute to revenue + occupany - not displace
Displacement formula
- How many rooms from natural demand - by day of the week
- Example - corp hotel - 200 rooms
- M = 90 rooms
- T = 100 Rooms
- W = 150 Rooms
- Th = 80 Rooms
- ADR = 200€ per night
- Sales would like to book 100 rooms T + W nights - sales rate = 100€
- Revenue displaced = Wed - 50 rooms at 100€
- Total revenue displaced = €5,000
- NEW rate for group quote = 5,000€ / 200 rooms (total group) = 25€
- Group rate for T, W no revenue loss = 125€
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