Hotel Revenue & Management Blog

What is the meaning / definition of Group Rate in the hospitality industry? Hotels that frequently accept bookings from groups can offer reservations at a specially negotiated rate. This is called a Group Rate. You might be wondering how many people (and therefore how many total rooms!) are involved for a booking to be categorised as a ‘group booking’? Well, [...]

What is the meaning / definition of Group Displacement in the hospitality industry? Group bookings can help increase profits for hotels, but (perhaps surprisingly) not always! Sometimes reserving rooms for a group booking (and therefore making them unavailable for transient customers) can prove a mistake. There might have been more profitability in refusing a group booking, even if it involved [...]

What is the meaning / definition of Gross Revenue in the hospitality industry? Gross Revenue refers to the total sales made by a business. It thereby highlights a business’s ability to sell products and services, but it does not reveal if a company is able to strike a profit. It is the company’s revenue minus the cost of goods sold [...]