1Hotel and costs
Your sellable rooms and what it costs to have a room occupied, so the tool compares profit, not just revenue.
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.
| Night | Transient demand (rooms) | Transient rate ($) | Group rooms requested | Rooms 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".
4Food, beverage and meeting room
Average group spend per room night outside the room, and the profit margin you keep on it.
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
| Night | Transient demand | Group rooms expected | Rooms held for group | Transient displaced | Transient revenue lost | Transient profit lost | Group revenue | Group profit | Net 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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