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Siebel Hospitality Guide > Applying Quote and Order Pricing > About Function Space Pricing > Profit and Revenue ThresholdsThresholds are predetermined amounts that indicate how much profit must be made by the hospitality property to complete the booking. Some hospitality companies only accept function space business if a predetermined profit threshold amount is met for a property event. This mechanism is used to qualify event opportunities at a property according to the revenue and profit potential of the event. The Revenue Manager can override the threshold and approve a quote even if it does not meet the threshold or has a negative threshold profit variance. Thresholds are defined by revenue managers for function space by days and day parts. For more information, see Administering Function Space Pricing. When thresholds are calculated, the following rules are applied:
Example of a Threshold Calculation with Applied RulesThis example explains the threshold calculation that occurs when three functions take place in the same function space called FSC 1. Table 101 shows the functions and time intervals. To calculate the required threshold for each function, Siebel Hospitality determines the number of day parts the function covers. The day part is included even if the function only uses a few minutes of the day part. Siebel Hospitality then determines the threshold associated with each of the day parts listed for the function. Table 102 shows how day parts are set up for the property.
Table 103 shows the thresholds that are in effect. The assumption is that function space category (FSC) 1 and 2 have the same threshold amount.
Table 104 shows how the required threshold calculation occurs, assuming the turntimes are zero. As can be seem from Table 104, the thresholds are calculated as follows:
The following exceptions can be applied when the required threshold is calculated:
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