What is group displacement in hotel revenue management?

Group displacement is the transient business a hotel turns away in order to accommodate a group. It occurs when forecast room nights plus group rooms exceed available inventory. The displaced room nights are valued at the online ADR the hotel would otherwise have achieved, producing the displacement loss.

How do you calculate group displacement?

Forecast room nights = hotel inventory x (forecast occupancy percent / 100). Displaced room nights = MAX(0, forecast room nights + group rooms - hotel inventory). Displacement loss = displaced room nights x online ADR. Net group value = total group revenue (rooms plus ancillary spend) minus total displacement loss.

What is the Minimum Acceptable Group Rate (MAGR)?

MAGR = (total displacement loss - total additional spend) / total group rooms. It is the rate per room a group must pay for the hotel to break even on the revenue displaced by taking that group. If no rooms are displaced, no rate floor is required.

Is this group displacement calculator free?

Yes. The 2 Keys group displacement calculator is a free hotel revenue management tool. It runs entirely in your browser, requires no signup, and lets you export the full analysis to PDF.

Should I accept a group with a negative net group value?

A negative net group value means the displacement cost exceeds the total group revenue, so the group should be declined or renegotiated to at least the Minimum Acceptable Group Rate. Before deciding, also review current-year pickup trends on other segments and the expected group wash rate.

Free Group Displacement Calculator | Hotel Group Analysis Tool

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Core Settings & Displacement Logic

Hotel Inventory (Rooms)

Currency

Active Displacement Logic

RN_Forecast = Hotel_Inventory × (Forecast_Occ_Pct / 100)

RD = MAX(0, (RN_Forecast + Group_Rooms) − Hotel_Inventory)

Displacement_Loss = RD × Online_ADR

MAGR = (Total_Displacement_Loss − Total_Additional_Spend) / Total_Group_Rooms

Logic is hardcoded for stability. Contact 2 Keys to adjust the underlying model.

Group Stay Details — Multi-Date

Summary Analysis

Total Group Revenue (A) AED 0

Displacement Loss (B) AED 0

Net Group Value (A − B) AED 0

Min. Acceptable Group Rate AED 0

Enter your group data and calculate to see the recommendation.

Detailed Day-by-Day Calculations

Run the calculation to see the full breakdown of rooms, displacement, revenue and net value for each day.

2 Keys Revenue Intelligence 2keysrev.com · hello@2keysrev.com

Core Settings & Displacement Logic

Active Displacement Logic

Group Stay Details — Multi-Date

Summary Analysis

Detailed Day-by-Day Calculations

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