Commissions and channel costs are two important factors to include in any displacement analysis when pricing group rooms, and FLYR Hospitality considers them both.

Commissions are a cost that reduces the overall revenue contribution by a group. This input can be easily added to any group quotation in Step 3 of your workflow.

Commissions can be calculated against total group revenue, as seen above, or calculated as separate commission amounts against accommodation and/or ancillary revenue.

If commissions have been included in your group inquiry, the resulting rate recommendation should be considered as inclusive of commission.

Channel costs are a cost that reduces the overall revenue contribution by displaced transient business. These are an important consideration when pricing group rooms, as impact of displaced transient business can be higher or lower depending upon which channels are expected to book this forecasted business.

Channel cost configuration can be accessed in your Data Enrichment settings here.

Example:

FLYR forecasts that there are 150 more units of transient demand for the dates of the group request, and expects 40 of these rooms to come in via OTAs at an average sell rate of $200, or $8000 in gross revenue.

However, we understand through your channel cost configuration that you will pay roughly ~20% of that room rate in margin and fees.

The displacement that our groups pricing calculation will consider is $6,400 in displaced revenue, not the full $8,000.