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Displacement analysis

Displacement analysis asks whether taking a large low-rate booking costs you more in the higher-rate business it blocks than it brings in.

Worked example

  1. A tour operator offers 10 rooms for 3 nights at ₱2,000 — ₱60,000.
  2. Those dates normally sell 7 of those rooms at ₱3,800: 7 × 3 × ₱3,800 = ₱79,800.
  3. The group is worth ₱60,000 and displaces ₱79,800. It costs you ₱19,800 to accept.

Why it matters

It is the arithmetic behind every group and agent decision, and almost nobody at this size does it — the group looks like a full house, so it gets taken.

The answer flips with the season. The same group is excellent in September and expensive in Holy Week.

Do the same arithmetic on long stays. A four-week booking at a discount looks like security in September and costs you Holy Week if the dates run into it — the discount is only cheap when the alternative demand is not there.

In MangoHost

Historical occupancy and ADR per month, per room, are what the comparison needs; the judgement is yours. MangoHost does not decide this for you and should not pretend to.

Analytics & net profit →

Related terms

  • ADR (average daily rate)ADR is the average price a sold room-night actually fetched, across all the nights you sold in a period.
  • RevPAR (revenue per available room)RevPAR is the room revenue you earned per available room, whether that room sold or not — occupancy and rate combined into one number.
  • PickupPickup is how many room-nights were added for a future date since you last looked — the rate at which a month is filling.

MangoHost gives Philippine properties these numbers without a month-end spreadsheet. Book a 30-minute walkthrough and see them on your own rooms.