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Group & displacement

Protect transient. Capture the right group business. Model the trade-off every time.

Group displacement analysis is the discipline of comparing the revenue a group block will produce against the transient revenue it will displace on the same dates. Barnhill models this for every group inquiry above a threshold you set with us during onboarding — with a written approval recommendation to the GM within one business day.
Who this is for

Properties with recurring group demand.

Group displacement matters most for hotels with 20%+ group mix or unpredictable group inquiry cycles. We make the math visible — and reversible — so groups become a deliberate revenue choice, not a default acceptance.

What’s included
  • Property-level displacement model installed during onboarding
  • Per-inquiry written displacement memo (within 1 business day)
  • Weekly group pickup call (Premier & Signature)
  • Block-level pace tracking against displaced transient
  • Group rate floors set against the transient demand curve
  • Quarterly group-mix review against budget
  • Citywide compression modeling for known city events
Sample deliverable

The single-page displacement memo.

For every qualifying inquiry, Barnhill produces a one-page memo: the group block, the transient pace on the displaced dates, the projected displaced revenue, the projected group revenue (rooms + ancillary), and the net delta. Approve, counter, or decline — the math is on one page.

How we measure success
KPITarget range
Group mix vs. budgetWithin 3 points
Displaced transient ADR vs. accepted group ADRGroup ≥ 92% of transient ADR
Block pickup vs. block contract≥ 90% pickup
Wash factor accuracyWithin 5%
Group ancillary revenue (where tracked)≥ 8% of rooms revenue
FAQ

Questions about this service.

What revenue threshold triggers a displacement memo?

We set the threshold during onboarding based on your property’s typical group mix and your GM’s capacity. A common starting point is any inquiry of 15+ peak-night rooms on dates falling inside your 60-day transient pace horizon, but the threshold is property-specific.

Do you handle catering and F&B in the displacement model?

Yes — when the property tracks F&B and catering per group. The model accepts a per-group ancillary contribution line and includes it in the net-delta calculation. If your PMS or sales-and-catering system does not isolate per-group F&B, we use a property-average contribution rate from the trailing 12 months.

What about wash factor — how do you handle no-shows and cancellations?

We pull the property’s historical wash by group type (corporate, association, social, sports, government) from the trailing 24 months and apply it inside the displacement model. The memo always shows the gross and washed group revenue side by side.

Will you push back on the sales team?

Routinely. The displacement memo is meant to be the third voice in the room — the sales lead, the GM, and an independent analysis with no commission on the booking. Where Barnhill recommends declining a block, we write it; the GM still decides.

Does this apply to corporate negotiated accounts too?

Indirectly. Negotiated-account RFPs are governed by a separate cadence (annual rate-setting + quarterly volume review) but the same displacement logic informs LNR ceilings.

Want to see this discipline run on your hotel?

Schedule a 30-minute discovery call — we’ll walk you through how this would look on your property in the first 30 days.

Schedule a Strategy Call