Group 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.
See Data Details for all evaluation results. Or see Group Pricing for an overview of the topic.
Review Results Steps
Evaluation Results display immediately after you run an evaluation. Follow these steps to view the results of a saved evaluation.
- Click
and then Group Pricing.
- 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 Group Evaluations for the steps and best practices for 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 multiproperty 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 include the below details for each evaluated arrival date, sorted by the highest Net Profit.
Note: If you use Group Products and the guest room needs for all nights match the Min and Max Rooms range, the evaluation results only show Arrival Date, Recommended Rate, and Contractual Revenue. Due to the simplified results you also can't View Details or Adjust Evaluation Results.
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-coding doesn't change if you adjust the evaluation results.
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Break Even Rate |
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. |
Recommended 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 ![]()
For details, see how G3 RMS calculates the Recommended Rate. ![]() For Run-of-House evaluations you see one Recommended Rate, for Room Class evaluations you see two:
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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 the values of each element included in the package (defined by you in package setup). |
Contractual Revenue | The total rooms revenue that would be contracted if you sell to the group at the recommended rate. This value equals Gross Revenue for Rooms. To view all revenue streams, click View Details. G3 RMS bases this calculation on highest achievable profit. If you use the Adjust Evaluation Results feature to decrease the recommended guest room rate for a single room type, 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 |
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 Rate
The system's calculations consider revenues and costs. Revenues include room revenue (based on Ceiling/Floor setup) and Ancillary revenue, but not 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 recommended 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
The displacement cost of the group includes the number of displaced rooms (the group size) over the stay dates of the group. 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.
- Impacts on shoulder days: For example, you accept a group that stays one night, on a Wednesday. That group might prevent transient bookings that would stay for multiple nights over Wednesday. Therefore, the occupancy and revenue for those “shoulder” 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.