Function Space Minimum Profit Percentage

Use the optional Minimum Profit Percentage if you require that every group exceeds a certain profit when you run an Evaluation. For example, if your property has heavy group demand, you might only want to accept groups that result in a Net Profit of 20% or greater.

If needed, you can vary the profit value by day of week, days to arrival, or by season. For example, with a higher minimum profit percentage than during the rest of the year. Minimum profit percentages apply to both Room Class and Run of House evaluations.

Notes:

  • G3 RMS applies minimum profit percentages only to Run of House evaluations. To meet a minimum profit for Room Class evaluations, use Adjust Evaluation Results.
  • Many clients don't use this functionality because it constrains the system's recommendations, see the next paragraph for details.

How G3 RMS Applies Minimum Profit Percentages

G3 RMS uses your defined minimum profit percentages to calculate a minimum Net Profit threshold against which every Run of House evaluation is measured. In an evaluation, G3 RMS applies the minimum threshold and, if needed, adjusts the recommended rate and revenue to meet the minimum Net Profit. Displacement does not change when G3 RMS adjusts the recommended rate.

For a multiday evaluation with different minimum profit percentages by day of the week, G3 RMS uses a weighted average based on the number of rooms by day.

Note that the adjusted recommended rate can exceed the Ceiling value defined in Ceiling/Floor.

Function Space Results

In the evaluation results you can see the following: 

  • If the recommended rate results in a Net Profit percentage equal to or greater than the minimum profit percentage that you set up, the evaluation results display as: Acceptable Rate.
  • If G3 RMS adjusts the rate to achieve the minimum profit percentage, the results display as:  Rate has been adjusted to meet the minimum profit threshold. The same status displays if the rate exceeds the group pricing Ceiling.

Setup Steps

Accessing Minimum Profit Percentages

  1. Click and then Configuration.
  2. Click the Minimum Profit Percentage tab.

Adding Minimum Profit Percentages

  1. Click Configure Days to Arrival to set the days to arrival ranges.
  2. In the Days to Arrival Configuration window, define the ranges of days to arrival in which you want to enforce specific minimum profit percentages. Select one of two options:
    •  Select Full Forecast Window to enforce the same minimum profit percentages for the entire Forecast Window, and click Apply.
    •  Click Add to add days to arrival ranges. You can define up to four ranges. Enter an End Day value to specify the cut-off day for each range. For example, add the End Days of 30, 60 and 90 for days to arrival ranges of 0-30, 31-60, 61-90 and 91+.
  3. In the Value column, type a minimum profit percentage for each Days to Arrival range. The value must be between 0 and 100. The value displays for each day of the week.
  4. Edit the minimum profit percentage for each day of week, as needed.
  5. Click Save.

Adding Seasons

  1. Click the add icon .
  2. Add a Season Name. You can refer to this name later if you want to copy a season to create another.
  3. Type or select the Start Date for the season.
  4. Type or select the End Date for the season.
  5. Change the minimum profit percentages for each Days to Arrival range and day of the week, as needed. If you already created a season, you can also use the Copy From menu to copy the values from an existing season.
  6. Click Apply.
  7. Repeat the steps as needed to add additional seasons.
  8. Click Save.