Group Allocation
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      1. RoomPriceGenie Knowledge Base
      2. Pricing Strategy
      3. Group Allocation

      Group Displacement Calculator

      Calculate the ideal price to offer to a group. By comparing forecasted revenue from regular (transient) bookings to a proposed group rate, you can confidently decide how much of a discount you can offer (if any) without losing revenue.

      Product Plan
      Advanced
      Professional

      PLEASE NOTE

      This feature requires a Premium Integration and is only available for accounts with sufficient historical data to generate accurate forecasts — typically around two years of consistent occupancy and revenue information from the same PMS.

      If you have any questions, feel free to contact us at support@roompricegenie.com.

      Key Features

      • Instantly estimate the ideal price to offer a group
      • Forecast the displaced revenue if rooms were sold individually
      • Compare profit margins based on different group pricing
      • Quickly respond to group enquiries with data-backed quotes
      • Retrieve, edit, and track past group quotations with notes and status updates

      What is Group Displacement and what's in it for our Clients?

      Group displacement is the practice of evaluating the potential revenue lost by taking a group booking instead of selling rooms to individual (transient) guests. Hotels often offer discounts to groups, but the question is: is the secured group revenue worth more than what you would earn by waiting for individual bookings?

      The Group Displacement Calculator answers this question by:

      • Forecasting the revenue you would earn without the group
      • Suggesting a price that ensures you still come out ahead
      • Helping you remain competitive by enabling a fast turnaround on group requests (groups usually would reach out to multiple properties to get a quote)
      • Retrieve previous group quotations quickly and easily — compare this year’s recommendations with last year’s quote in seconds, without searching through emails or spreadsheets. 

      ATTENTION:

      • The group displacement feature in RoomPriceGenie calculates its results based solely on the reference room. This means it uses a Run of House approach: a single rate is quoted for the entire group, regardless of which specific room types they will actually be staying in.
      • The group displacement feature represents a quotation calculation only, which means we are not updating any price to your PMS. In case you accept the recommended price quotation, the group block must be manually entered on your PMS with the custom quoted room rates.

       

      How can I calculate the Group Displacement in RoomPriceGenie?

      See below how you can use this amazing solution:

      1. In the RoomPriceGenie app, go to  Pricing Strategy in the main menu.
      2. Click on Group Displacement.
        1. Quotations: Once you click, you will view the quotation list containing the calculation details for each specific group. There you will find all the quotations you have made over time.
        2. The search bar and filters will help you find quotations quickly.
      3. To make a new calculation, click on "Calculate New Quotation".

      Calculate New Quotation

      1. Group Name: Add the name of the group
      2. Number of Rooms: Add the quantity of rooms your client is asking for
      3. Base Rate Offset: Add here any extra charges that is not included in the reference rate (breakfast, special amenities) or special discounts (positive or negative values) to be applied per room, per night for the group.
      4. Duration of Stay: Add the group's stay date.

      Once you select the stay date, you will notice that the calendar will get colored. Keep in mind the colors are based on the number you added in "Number of rooms." Here is the color scheme according to the current availability:

      • Red means that not enough reference rooms is currently available for the group.
      • Yellow means you currently have enough reference rooms for the group, and there will be only a few rooms left to sell.
      • Green means you  currently have enough reference rooms for the group, and there will be plenty of them left to sell.

      Genie Tips:

      💡Hover over the dates to see the quantity of rooms available per day

      💡Once you select the Duration of the Stay, you will be able to scroll down the pop-up and customize the quantity of rooms per day

       

      Click  "Calculate" to move forward and see the calculated price for that group, or "Reset" to clean up the data.

      There you go! 5 simple steps and now you can find the recommended total price for this group.

      Just that easy!

      Understanding the calculation details

      Navigate to the details of this calculation as a pro! Let's go by blocks:

      1. Recommended Group Price: Total price for the whole stay that we would recommend for the group.
      2. Overwrite: This allows manual input to test profit at custom group rates and see the new value's effect directly on the average per room per night rate and profit.
      3. Avg price per room per night: The recommended rate per night to offer the group based on the recommended group price above.
      4. Displaced Revenue: What would you earn without the group (based on the forecast for the requested dates).
      5. Estimated Group Profit: Additional revenue you will generate by taking that group (based on 50% of the difference between displaced revenue and group rate - assuming 50% discount is passed to the group, you will learn more about the 50% discount in the next block).
       
      1. 50% Discount Share (discount assumption): The system assumes that 50% of the potential profit from displaced revenue is offered as a discount to make the quote competitive versus public rates (e.g., on Booking.com or the hotel’s website). This assumption is fixed, but you can override the total group price to apply more or less discount manually.
      2. Base Rate Offset: Customisable during the quotation setup to reflect extras or reduced group spend. This value is locked once you calculate the quotation but can be changed by going back before the calculation.
      3. Run of House Mode: It means the group pays one price regardless of the room type. THe system applies a uniform reference rate to all rooms within the group, effectively standardizing the pricing across room types. It is important to note that this rate remains consistent even if the group ultimately books higher-tier room types. If the Run of House rate differs from the reference room rate you are planning to use for the group, it's crucial to adjust the Base Rate Offset accordingly.  (i.e. you are offering a price only for Deluxe or Superior rooms).
       
      • See the details per day. The checkmarks next to the group profit will reflect the same calendar color scheme according to the room availability.
      • Select the status you would like to add to this group.
      • Add any relevant notes in the single-note field available.
       
       

       

      Genie Tips:

      💡Hover over Rooms Available to find the availability details per room type.

      💡Hover over Standard Price to view rate breakdown and Base Rate Offset inclusion.e.g.

       

      Managing past quotations

      Saved quotes appear on the Group Displacement main page and can be:

      • Sorted or filtered
      • Reviewed (click to view detailed breakdown)
      • Edited: overwrite price, add notes, change status (Accepted, Rejected, In Review)
      ⚠️ Name, date, and room count cannot be edited after saving. Create a new quote for any structural changes.

      Past quotes reflect the forecast at time of creation. Re-running the same quote later may produce different results due to updated forecasts.