Group Pricing - Servicing Cost

In the Servicing Cost tab, enter your property's per room servicing cost by Room Class.

What is Servicing Cost?

The Servicing Cost represents the minimum amount to service an occupied room. The value differs by property and the Finance team can usually provide it.

  • Hourly labor cost.
  • Utilities – the increase in cost compared to when the room is empty.
  • Housekeeping supplies and toiletries.
  • Food and beverage items, for example, an arrival platter.
  • Technology fees that apply when the room is occupied.

You set up this cost at the Room Class level. Higher-priced Room Classes may have a higher Servicing Cost associated with them (for example, additional cleaning time or more amenities).

 

How Does G3 RMS Use the Servicing Cost?

G3 RMS uses the Servicing Cost as one of the inputs for calculating the Gross Profit and Displaced Profit values for guest rooms. For evaluations at the Room Class level, the system calculates these values per Room Class, for Run-of-House, it uses a weighted average.

See Group Evaluation Details for more information.

Setup Steps

During the initial setup, if G3 RMS automatically configured the Servicing Costs, they equal 14% of your historical ADR for each Room Class. Review and, if needed, change the values.

  1. Click , then Decisions, and then Group Pricing Configuration.
  2. Click the Servicing Cost tab.
  3. Enter the Servicing Cost for each Room Class. This value is per room for one night.
  4. Click Save.