In periods of high occupancy, what should the decision to accept a large booking group include?

The decision to accept a large booking group during periods of high occupancy should include displacement analysis because it assesses the potential opportunity cost associated with reserving space for the large group. Displacement analysis evaluates the revenue or profit that might be lost by not accepting smaller, potentially higher-paying bookings that could fill the available space during that time.

By conducting a displacement analysis, management can determine if the financial benefits of accepting the large group outweigh the potential losses from turning away smaller groups or individual bookings that could have generated more revenue. This analysis is critical in ensuring that the business optimizes its occupancy rates and overall profitability, especially during peak times when demand is high.

Other options, while important in their contexts, do not directly address the immediate financial implications that come with booking decisions in high-occupancy scenarios.