Group Quote and Displacement Calculator

A group can look like great business and still lose you money if it pushes out regular guests who would have paid more. Enter the group's request and your expected demand, and get a clear Accept, Negotiate or Decline, the lowest rate worth taking and a counter-offer.

Saves automatically in your browserNo sign-upFreeCounts food, beverage and meeting room profit

1Hotel and costs

Your sellable rooms and what it costs to have a room occupied, so the tool compares profit, not just revenue.

Sellable rooms each night
Cleaning, laundry, amenities, utilities
Average OTA (online travel agent) and card fees on regular bookings

2Stay pattern and demand

One row per night, up to 14. "Transient demand" is how many rooms regular (non-group) guests would book if you had unlimited rooms; take it from your forecast or last year's same nights.

NightTransient demand (rooms)Transient rate ($)Group rooms requestedRooms displaced

Transient rate = the average daily rate (ADR) regular guests would pay that night. CSV columns: date, transient_demand, transient_rate, group_rooms.

3The group's offer

What the group is asking for. "Pickup" is the share of the requested rooms the group actually uses; the rest is "wash".

The rate they asked for or you plan to quote
Use this group's or similar groups' history
Released at cut-off in time to sell again
Paid to a planner or third party on room revenue
Cushion for forecast error; sets the counter-offer

4Food, beverage and meeting room

Average group spend per room night outside the room, and the profit margin you keep on it.

Banquet meals, breakfasts
Bars, receptions
Room rental and AV, divided by room nights
Typical banquet margin is 25 to 40%

Results update as you type.

Verdict

Profit compares what the group brings in, after commission and costs, with the profit from the regular guests it pushes out.

Demand, group and capacity by night

Bars show the rooms you would fill with the group: regular guests you keep plus expected group rooms. The line shows regular demand, the dashed line your capacity. Where demand is above the bars, the group is pushing guests out.

Night by night

NightTransient demandGroup rooms expectedRooms held for groupTransient displacedTransient revenue lostTransient profit lostGroup revenueGroup profitNet gain or loss

Rooms held = expected group rooms plus unused group rooms you can't resell. Group revenue includes room revenue, food, beverage and meeting room; group profit is after commission, room costs and the extras margin.

Quote summary

A one-page summary to share with your director of sales or revenue manager. Use Print quote to save it as a PDF.

How it's calculated

For each night, with capacity C, transient demand D, transient rate ADR and group rooms requested R:

Expected group rooms   g = R × pickup
Rooms held for group   h = g + (R - g) × (1 - resale share)      (never more than C)
Transient without group  = min(D, C)
Transient with group     = min(D, C - h)
Transient displaced      = the difference
Transient profit / room  = ADR × (1 - booking cost %) - variable cost
Group profit / room night = rate × (1 - commission) - variable cost + (food + beverage + meeting) × margin
Net gain                 = group profit - transient profit lost

Break-even group rate is the rate at which net gain is exactly zero across the whole stay:

break-even = (transient profit lost + g_total × (variable cost - extras profit per room night)) / (g_total × (1 - commission))

Verdict. Accept when the group rate is at least break-even plus your safety margin. Negotiate when it is below that but within 10% of break-even (close enough to bridge with rate, dates or a food and beverage minimum). Decline when it is more than 10% below break-even. The counter-offer is break-even plus the safety margin, rounded up to the next $5.

Assumptions and limits. Demand is treated as a single best estimate per night (no uncertainty band), so a cautious safety margin matters most on nights where demand is near capacity. Displaced guests are assumed to be lost, not moved to other nights. Multi-night transient stays that the group breaks up (a guest who can't get Saturday may not book Friday either) are not modelled, so displacement on shoulder nights can be understated. Group rooms that aren't picked up and can't be resold earn nothing; attrition penalties in the contract are not counted. Everything is before tax.

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