Hotel Revenue Glossary · Segmentation

Group Business

Reservations for a block of rooms booked under a single contract, typically at a negotiated rate. Group business includes corporate meetings, conferences, weddings, sports teams, and tour groups. Groups usually require 10 or more rooms per night.

Why it matters: Group business provides base-load occupancy but typically at discounted rates. The revenue management challenge is balancing group commitments against transient demand to optimize total revenue — accepting too much group can displace higher-rated transient bookings.

All glossary terms Transient Business Displacement Analysis Wash Factor