{"id":22572,"date":"2020-04-08T12:01:22","date_gmt":"2020-04-08T12:01:22","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/group-displacement\/"},"modified":"2024-12-23T09:22:01","modified_gmt":"2024-12-23T09:22:01","slug":"group-displacement","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/group-displacement","title":{"rendered":"Group Displacement"},"content":{"rendered":"

What is the meaning \/ definition of Group Displacement in the hospitality industry<\/a>?<\/p>\n

Group bookings can help increase profits for hotels, but (perhaps surprisingly) not always! Sometimes reserving rooms for a group booking<\/a> (and therefore making them unavailable for transient<\/a> customers) can prove a mistake.<\/p>\n

There might have been more profitability in refusing a group booking, even if it involved a group consisting of several people who wished to stay<\/a> for several nights and even over the weekend.<\/p>\n

Typically groups get better rates than individual bookers.<\/p>\n

For example these same rooms could be sold at a higher price trough OTA<\/a> or even directly from your website.<\/p>\n

This is the reason why before accepting a group it is necessary to make a displacement analysis<\/a>.<\/p>\n

When transient<\/a> or walk-in customers (and individual, couple, or family) are precluded from making a reservation due to a group booking being taken instead, they are described as being \u2018displaced\u2019 by the group booking.<\/p>\n

One or several groups can be displaced by a particular group, too, if the hotel<\/a> so decides.<\/p>\n

Thankfully for hotels, Group Displacement<\/a>, which would form part of their Displacement Analysis<\/a> process, is not all down to guesswork! Group Displacement can be measured.<\/p>\n

Before accepting any group reservation, the following data must be considered when calculating the overall profitability:<\/p>\n