Hotel Revenue Glossary · Strategy

Displacement Analysis

The process of calculating whether accepting a block of rooms at a discounted rate would displace higher-paying individual bookings. It compares the total revenue of the group against the revenue that could have been earned from transient demand.

Why it matters: Groups often request discounted rates. Displacement analysis ensures you don't accept a group that would actually cost you money by pushing out guests who would have paid more. It's one of the most important tactical decisions in revenue management.

All glossary terms BAR (Best Available Rate) Market Segment Forecast