Hotel Revenue Glossary · Demand

Demand Displacement

The phenomenon where accepting one type of business (typically lower-rated groups or contracted rates) pushes out other demand that would have booked at a higher rate. Displacement quantifies the revenue difference between the accepted and the foregone business.

Why it matters: Every room sold to one guest is a room unavailable to another. On dates where transient demand is strong, accepting a discounted group may displace bookings that would have materialized at BAR. Displacement analysis prevents this costly mistake.

All glossary terms Displacement Analysis Group Business Transient Business