Good question!
Our Groups Quotation tool supports four distinct types of budget input:
Total Budget- The total amount a group is wanting to spend for all components of the quote (e.g. room rate and any ancillaries).Accommodation Budget per Room- The total amount a group is wanting to spend per room per night on the room rate only.Total Budget per Room- The total amount a group is wanting to spend for all components of the quote per room per night.Total Budget per Guest- The total amount a group is wanting to spend for all components of the quote per guest
On the KPI screen, your Group Budget metric displays immediately below your Avg. Recommended Price. To create a helpful comparison, we have normalized all budget inputs into an equivalent room rate only budget.
This means if you have input your budget as one of Total Budget, Total Budget per Room, or Total Budget per Guest, our system will remove any ancillary revenues from the input budget total before dividing to provide a room rate budget. If the total ancillary revenues exceed the budget input, the result will be a negative figure in the Group Budget KPI.
A budget input of Accommodation Budget per Room will directly translate to this KPI and will not be impacted by ancillary revenues.
Example #1 (Positive Budget Output):
Total Budget = €50,000
Requested Ancillary = €30,000
Requested Rooms = 150
In the above scenario, this group will have €15,000 left of their budget to spend on rooms. Their budgeted room rate is therefor (€50,000 - €30,000) / 150 = €100.
Example #2 (Negative Budget Output):
Total Budget = €50,000
Requested Ancillary = €55,000
Requested Rooms = 150
In the above scenario, this group will have -€5,000 left of their budget to spend on rooms. Their budgeted room rate is therefor (€50,000 - €55,000) / 150 = -€33.