Anything above the IC Factor and a sales commission, is profit. Therefore, we can structure deals that are compelling to the buyer and highly profitable to the seller.
In the B2B sector, knowledge of the IC Factor can be used to make decisions about how to use a portion of the unused and unsold capacity to positively affect the bottom line, by marketing it to the corporate sector.
The sales model calls for making additional sales, within certain limits, providing a discount large enough to compel the corporate client to come to terms with the hotel.
A typical, OTA-generated, sale might consist of a $200 rack rate room netting the hotel $50.
The hotel costs might be $40, or less, or 20% of the rack rate. The hotel makes the deal because there is, at least, a $10 profit in the sale. The room sells at an 80% discount. The IC Factor for meeting/events space and other services are similar.