Displacement

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.

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