In a data-driven world, going with your gut on revenue decisions is risky - whether you manage an independent property, a multi-hotel group, or a franchise. 

Group business can be a profit driver or a silent drain on your RevPAR and TrevPAR. The difference? Knowing when to accept and when to walk away. 

Here’s how to evaluate group vs. transient bookings so you can make every booking count. 

Why consider group bookings? 

• Predictable revenue: Groups book in advance, locking in occupancy and creating a stable base. 

• Filling low-demand gaps: Many groups book during off-peak midweeks or low seasons, filling beds when you need it most. 

• Ancillary spend: Groups often spend on meeting spaces, catering, and events - driving revenue beyond the room. 

• Lower distribution costs: Direct bookings mean fewer OTA commissions. 

• Operational efficiency: Pre-set schedules make planning easier for your team. 

Why prioritize transient business? 

• Higher ADR potential: Transient guests often pay more, especially during high-demand periods. 

• Flexibility: Dynamic pricing lets you adapt to market changes in real time. 

• Better control: You can prioritize high-value guests, loyal members, and VIPs. 

• Ancillary revenue: Leisure guests often spend on spa, F&B, and upgrades. 

The tool to decide: Displacement analysis 

Wondering whether to take a group booking or hold out for transient business?
Run a displacement analysis: 

Step 1: Estimate group revenue 

Rooms requested x Nights x Group rate 
Example: 12 rooms x 3 nights x $140 = $5,040 

Step 2: Estimate displaced transient revenue 

Rooms x Nights x Forecasted ADR 
Example: 12 rooms x 3 nights x $180 = $6,480 

Step 3: Add ancillary revenue 

Example: Group spends $1,800 on catering and meeting space. 

Step 4: Compare totals 

Group revenue: $5,040 (rooms) + $1,800 (ancillary) = $6,840 
Displaced revenue: $6,480 

You’d earn $360 more by accepting the group. 

Factors to consider beyond numbers 

• Profit margins: Are ancillary sales profitable after costs? 

• Booking window: Can you sell rooms at higher rates if you reject the group? 

• Stay pattern: Does the group’s stay create low-occupancy gaps? 

• Room type mix: Will you be left with harder-to-sell inventory? 

• Group wash: Might the group reduce room count last minute? 

Tip: If the group appears unprofitable, consider negotiating rates, shifting dates, or offering meal packages to improve profitability. 

Good news: Atomize can help 

You don’t have to calculate this manually. The Group Module in Atomize helps you evaluate group requests quickly and confidently, factoring in forecasts, pricing, and demand patterns so you can say yes to the right groups and no to the wrong ones - without second-guessing. 

Final thought 

Groups can be a powerful revenue lever, but only if you evaluate them correctly. Use displacement analysis and your tools to support smart, confident decisions - and keep your revenue strong. 

Need help using the Group Module for your next request? Reach out to support anytime.