Background One of the major revenue management decisions is the choice to accept transient room demand vs. group demand. The displacement decision analysis involves many variables that compares expected hotel revenues from the usually higher Average Daily Rates (ADR) generated from transient demand vs. lower ADR's generated from group room demand.[ CITATION Mario \\| 3081 ] However, group room demand has the potential to generate additional ancillary nonroom revenue such as catering, food and beverage sale, meeting room rental, audio/visual services and other activities. Case Study Hotel Mount View is a four-star hotel with 200 rooms, a barcum-dining room facility and a conference hall for 250 guests with courtyard dining facility for conference delegates. 0TB demand for the Easter weekend in 2018 as on 15 March 2018 is as follows: FrI-ay, 30 Marc 201' Saturay, 31 Marc 201' Sun-ay, 1 Aprl 201- e rooms are . co . - t e tranSIent mar et segment at a rac rate 0 $ :0 per room night on each of the three Easter weekend nights. Forecasted transient demand (as of 15 March 2018} is for 100% rooms occupancy on each of those three nights at rack rate. The revenue manager has received a proposal from the local Rotary club for booking the remaining 40 rooms on Saturday at a contracted rate of $ 120 on single occupancy basis. The rate includes breakfast vouchers worth $20 per room (food cost is 35%}. The Rotary Club also wants to book the conference hall (and the audio-visual facilities) on Saturday for a rate of $1000 and also organize a courtyard dinner for 100 delegates at $40 per delegate for food only at cost of sales of 35%. Based on historical data, each transientoccupied room usually spends $40 on average for food (breakfast, lunch and dinner) at an average cost of sales of 35% and beverages worth $25 with a beverage cost of sales of 20%. Approximately 70% of transient bookings are made on the hotel website which has a channel cost of $5 per room. The remaining 30% of transient bookings are made via the OTA channel attracting a commission of 20%. Room cleaning and variable wage costs are $30 per occupied room. The revenue manager is debating whether to displace the transients in favour of accepting the group. Do a displacement to advise the RM