Profit and Revenue Thresholds

Thresholds 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:

• Any time a function touches a day part, even for a few minutes, the function space category threshold value for the day part is applicable.

• The functions for threshold calculation are considered along with established turntimes.