Function Space Evaluation Results

The results of an evaluation show you the recommended pricing and the potential revenue and profit for the group. Color-coding helps you quickly interpret the results and find the best option if you have evaluated multiple arrival dates. If you evaluated multiple properties, the color-coding also helps you find the most profitable one.

Review Steps

Evaluation Results display immediately after you run an evaluation. Follow these steps to view the results of a saved evaluation.

For multi-property evaluations, open the Property Group view.
Click and then Evaluations.
Click the Action menu for the saved evaluation that you want to view.
Click Show Details.
Use the Evaluation Details tab to re-evaluate the group based on new parameters. See Function Space Evaluations for the steps to re-evaluating a group.
Click the Evaluation Results tab. Results from the most current evaluation display.
To view results from a previous evaluation, when applicable, select a new date in the Evaluated On menu.
For multi-property evaluations, select a View by option to view results by Arrival Date or by Property. The Arrival Dates or Properties display in separate tabs, depending on your selection.

Data Details

Evaluation Results includes the following details for each evaluated date, sorted by the most profitable date first:

Data	Description
Arrival Date	The preferred and alternate arrival dates (or properties) that you entered into the evaluation. The group's preferred arrival date is flagged with a checked icon . The color codes for the arrival dates indicate the following: Acceptable Rate: The recommended Rate is profitable for this arrival date. Not Profitable: No rate is recommended for this arrival date because it is not profitable. In most cases, a higher rate may be profitable, but the Ceiling value in Ceiling/Floor keeps the system from recommending it. Recommended Rate is constrained by Average MAR: The recommended rate is profitable, but G3 RMS could achieve a more profitable result if the rate was not constrained by the Floor value in Ceiling/Floor configuration. Recommended Rate is constrained by Ceiling: The recommended rate is profitable, but G3 RMS could achieve a more profitable result if the rate was not constrained by the Ceiling value in Ceiling/Floor configuration. Rooms revenue is not profitable: The profit for the room revenue is negative, but the total profit from the group is positive. Rate has been adjusted to meet the minimum profit threshold: G3 RMS adjusted the recommended rate to meet the Minimum Profit Percentage. The adjusted rate can exceed the Ceiling value configured in Ceiling/Floor configuration. Recommended Rate may not follow price ranking due to offset configuration. Due to the values configured in Offsets, the recommended rate might not follow your configured price ranking for Room Classes.
Break Even	The Break Even Rate is the lowest guest room rate to charge the group per room to at least generate the same profit as the profit expected to be displaced by the group. It's at least equal to the Per Room Servicing Cost, when displaced profit is zero (for example when no transient demand exists). The higher the displaced profit, the higher you can expect the Break Even Rate to be, keeping all else in the request the same. Ancillary revenues impact the Break Even Rate. A group with higher ancillary profit may result in a lower required Break Even Rate, even to the point where it is below the Per Room Servicing Cost. That is because the Break Even Rate is not constrained by your pricing setup, and the more ancillary profit the group generates, the less room revenue profit it needs to offset the displaced profits. When displaced profit is zero (no transient demand exists for the requested dates) or when the group only contributes room revenue, you can expect the Break Even Rate to be at least equal to the Per Room Servicing Cost. Similarly, the higher the displaced profit, the higher you can expect the Break Even Rate to be, keeping all else in the request the same. In a Room Class Evaluation, this rate represents an aggregate value of all the selected Room Classes. Because of this, it is possible that a specific Room Class rate could be below the Break Even Rate.
Average MAR	The Average Minimum Acceptable Rate (MAR) is the lowest price that you are willing to sell to any group for the group dates. For Run-of-House evaluations, the system calculates this using the configured Floor values of the lowest priced Room Class that is set up as Include in ROH evaluation. For Room Class Evaluations, it is the weighted average of the Floor values for the selected Room Classes. For setup questions, see Ceiling/Floor.
Guest Room Rate	The optimal guest room rate, considering both maximizing profits and the probability of the group accepting a specific rate. If you Adjust the Evaluation Results, the system's recommended rate and your changed rate display. What data does the system consider for the Recommended Rate? Room revenue Ancillary revenue (but not Conference & Banquet revenue) Costs. These costs can be those that you specified in the evaluation, like commission, but also the configured Per Room Servicing Cost Ceiling/Floor Configuration The probability of the group accepting a specific rate. To calculate this probability, G3 RMS models the group's willingness to pay based on actual group business patterns using ADR by market segment and group size, similar to price sensitivity calculations for unqualified demand. For example, a $300 group rate is more profitable than a $250 rate. However, based on its price sensitivity calculations and expected demand for selected dates, G3 RMS may know that a group is more likely to decline at $300 than at the $250 rate. After discounting the $300 by this higher likelihood of a loss, the $250 is recommended as the better option. Displaced revenue Difference between Run-of-House and Room Class evaluations For a Room Class level evaluation, G3 RMS provides an optimal rate for each requested Room Class and the requested room types within the Room Class. The room type values include the offsets that you configured in Offsets Configuration, based on the offset for the group's arrival date.
Recommended Rental	The optimal function room rental rate calculated by G3 RMS. This amount is the total for all days and for all the function rooms utilized. It is constrained by your Function Rooms Rate Configuration. In the case of combination rooms, the rate combines values from the MAR of the room's indivisible pieces. In the case of multiple rooms, G3 RMS calculates a weighted average based off the length of usage and the MAR for each function room used.If you Adjust the Evaluation Results, the system's recommended and your changed rental values display.
Recommended Package Rates	If you use Package Pricing, the optimal rate to charge each attendee for single and double occupancy. The package price considers the recommended Guest Room Rate and Rental (optimized by the system) and the values of each element included in the package (defined by you in package setup).
Contractual Revenue	The total revenue that would be contracted if you sell to the group at the recommended rate. This value is the sum of the Rooms and Function Space Gross Revenues, excluding Ancillary revenues. To view the revenue streams separately, click the link to the Evaluation Details. The system’s calculation for this value is based on highest achievable profit. If you use the Adjust Evaluation Results feature to select only one revenue stream and decrease it, this value becomes sub-optimal and the group’s profit may turn negative.
Net Profit	The total gross profit minus the total displaced profit and, if applicable, Cost of Walk. Click View Details to see if Cost of Walk applies. A thumbs-up displays for the date with the highest Net Profit above zero.
Net Profit %	Total Net Profit divided by Gross Revenue.
Actions	Click View Details to drill down into the Evaluation Details. Click Adjust Evaluation Results to review or adjust the evaluation results.

How G3 RMS Calculates the Recommended Guest Room Rate

The system's calculations consider revenues and costs. Revenues include room revenue (based on Ceiling/Floor setup), Ancillary revenue, Function Room Rental, and Conference & Banquet revenue. Costs include those that you added in the evaluation, like commission, and the Per Room Servicing Cost.

Additionally, G3 RMS tries to answer two questions:

How much is a group willing to pay?
What business might you displace if you accept the group?

This is similar to BAR Best Available Rate. The lowest non-restricted product with flexible cancellation policy that anyone can book. G3 RMS optimizes the pricing of the BAR product. Other products, like Advanced Purchase or packages, can be linked to the BAR price. pricing, where G3 RMS uses transient price sensitivity and competitor pricing to answer the first question. And the system uses the Last Room Value (LRV) to answer the second question.

Group Price Sensitivity

G3 RMS estimates the probability that the group accepts a guest room price, based on ADR patterns of past group business. Depending on the available data, the system uses patterns by market segment, group size, Room Class, season, day of week, and length of stay. Raising the recommended rate above the Break Even Rate increases the profit, but decreases the chance that the group accepts the rate. The system finds the optimal balance for the Recommended Rate.

For example, a $300 group rate is more profitable than a $250 rate. However, based on its price sensitivity and expected demand for selected dates, G3 RMS might know that a group is more likely to decline at $300 than at the $250 rate. After discounting the $300 by this higher likelihood of a loss, the $250 is recommended as the better option.

Group Displacement Cost

G3 RMS calculates how much the group displaces in guest room, ancillary, and function space revenue. The displacement cost calculation for group pricing is more complicated than LRV, because accepting a group can lead to the following:

Changes in BAR pricing: The group reduces the rooms available for transient, so the BAR price might go up.
Changes in LRV: Similarly, with fewer rooms available for qualified business, the LRV decision can change.
Impact on shoulder days: For example, you accept a one-night group for a Wednesday. The group might prevent bookings that would stay for multiple nights over Wednesday. Therefore, the occupancy and revenue for those surrounding days changes.

Group Occupancy Rate

When a group block is first created and before any rooms pick up, G3 RMS doesn't know the distribution of single and double occupancy. Therefore, the system forecasts the group as single occupancy for Monday through Friday and double occupancy for Saturday through Sunday. Once reservations for the group pick up, G3 RMS uses the reservations details to calculate the distribution of single and double occupancy.