Displacement occurs when higher-value demand is lost because lower-value business was
accepted earlier.
Why it matters:
Focusing only on occupancy can reduce overall revenue quality and profitability.
Practical use:
Revenue teams evaluate group requests against expected transient demand before confirming
contracts.
Real-life examples:
Accepting a low-rate group blocks rooms that could later be sold at premium rates during a
citywide event.
Displacement
Read also
R
- Rate Parity
- Restrictions
- Revenue Forecast
- Revenue Manager
- Revenue Mix
- RevID (Revenue Identification)
- RevPAG (Revenue per Available Guest)
- RevPAR (Revenue per Available Room)
- RevPOR (Revenue per Occupied Room)
- RFI (Request for Information)
- RFP (Request for Proposal)
- RMS (Revenue Management System)
- ROI (Return on Investment)
- Rooms Occupied


