Work out group booking discount instantly with clear inputs, formula shown and shareable results.
Group pricing usually combines a percentage discount with complimentary places for tour leaders. Both must be netted against the standard rate to find the effective rate per person actually received, which is the number to compare with your displacement cost.
Complimentary places
Comps = floor(Group size / 20) x Comps per twenty
Effective rate
Effective rate = Paying guests x Standard rate x (1 - Discount %) / Group size
When the group fills capacity that would otherwise go empty and does not displace higher-rate individual demand.
Because tour leaders and organisers travel free by industry convention. It is a real cost that must be priced into the group rate.