What is the meaning of Group Displacement in the hotel industry?
Group bookings can assist boost earnings for hotels, but (perhaps surprisingly) not always! Sometimes reserving rooms for a group booking (and therefore making them unavailable for transient customers) can confirm a mistake.
There might have been more productivity in refusing a collection booking, even if it mixed up a group comprising of numerous people who desired to stay for quite a few nights and even over the weekend.
Normally groups get enhanced rates than individual bookers.
For example these same rooms could be sold at a elevated price through OTA or even straightforwardly from your site.
This is the reason why before accommodating a group it is essential to make a displacement examination.
When temporary or walk-in customers (and individual, couple, or family) are prohibited from making a reservation due to a group booking being taken in its place, they are explained as being ‘displaced’ by the group booking.
One or quite a few groups can be dislocated by a exacting group, too, if the hotel so makes a decision.