Operations Decision Support Tool

Hotel group pricing

Each property profile supplies the public rate, the minimum acceptable rate, expected occupancy, the room count, and a competitor set. The inquiry supplies the dates, the requested nightly rate, and the rooms asked for. Optional fields cover expected drop-off, events, and extra revenue such as parking and food and beverage. The five profiles are modeled defaults for Niagara Falls properties. Choosing a hotel and a date fills the public rate, the floor, and the occupancy from that profile. They are not a live extract from a hotel system.

• Property defaults

  Public rate, minimum acceptable rate, expected occupancy, room count, competitor set, and expected drop-off. Choosing a property fills these in.

• Stay dates

  Check-in and check-out. Nights are calculated and drive the room-night total.

• Requested rate and rooms

  The nightly rate the group is asking for, plus room types and quantities. Group size is calculated from the rows.

• Optional adjustments

  Wash, major events, room-type mix, or ancillary revenue. These refine the net picture. They do not change the order of the decision.

The review follows one order. Displacement is counted before the answer is treated as final. Unless the property details are overridden, the check uses total rooms and one group rate, not each room type on its own.

1. 01

   Below the floor

   If the requested rate sits under the minimum acceptable rate, recommend a counter.

2. 02

   Negative net impact

   If taking the group would reduce overall revenue after displacement, decline.

3. 03

   Strong versus the market

   If the rate clears the floor and looks strong versus the competitor set, accept and flag it as high versus market.

4. 04

   Otherwise

   If the ask clears the floor and net impact stays positive, accept.

Displacement is the transient demand you may lose when the group takes rooms that would otherwise sell at a higher public rate.

This is the built-in Sheraton Fallsview sample. The figures are what the decision panel shows for these inputs. They are not a result from a hotel that adopted the tool.

• The rate clears the floor and still sits below the public rate

  The group asked for $259. The floor is $229 and the public rate is $319, so the first check does not force a counter.

• Displacement is counted before the answer

  At 85% expected occupancy, transient demand is 569.5 rooms in a 670-room hotel. The group asks for 75 rooms a night. Those rooms fit, so none are displaced and the displacement cost is $0, against $58,275 of group revenue.

• The net figure supports Accept

  Net impact is +$58,275. The recommendation is Accept at $259, with that reason attached.

The value is a repeatable recommendation, not a new booking system.

• The rate is not the decision

  An ask can clear the floor and still be a poor choice if those rooms would have sold to other guests at a higher public rate.

• Displacement comes before the answer

  The net impact is group revenue after the rooms that may be turned away. Calling the answer before that count skips the check that can change it.

• The reason has to travel with the number

  Accept, Counter, or Decline is usable when the short explanation is attached. Otherwise the next person rebuilds the arithmetic.

• Optional fields do not reorder the checks

  Wash, events, and extra revenue refine the net figure. They do not change the order: floor, then displacement, then the recommendation.

After the inquiry is evaluated, the result is a recommendation someone can read out loud, with the figures that produced it.

• Accept, Counter, or Decline.
• Recommended rate.
• Net impact.
• Rooms displaced.
• Risk, marked Low, Medium, or High.
• A market flag when the rate looks high versus the competitor set.
• A short explanation of why that answer was reached.

Screens from the working example. The Sheraton Fallsview sample. Not a system a hotel has adopted.

• Operational decision-making
• Revenue evaluation
• Recommendation logic
• Business reasoning