Hotel Revenue Glossary · Demand

Constrained Demand

The actual bookable demand for a hotel, limited by the physical number of available rooms. Constrained demand equals unconstrained demand capped at the hotel's capacity. The difference between unconstrained and constrained demand represents spillover or displaced demand.

Why it matters: The gap between unconstrained and constrained demand quantifies how much business you are losing to capacity limits. On dates where this gap is large, aggressive pricing is justified because demand exceeds supply and turned-away guests will seek alternatives.

All glossary terms Unconstrained Demand Denied Revenue Compression Night