glossary: C

Cancelled Nights is similar to the cancellation rate, cancelled nights are the flat number of nights for check-ins during a given period that is cancelled prior to arrival. Cancelled nights can be tracked to determine if specific properties or time frames or even specific segments are more problematic.

Channel Management (CM) is the process of managing online distribution channels in order to sell your hotel inventory to various agents across the globe. These distribution channels can be the Global Distribution Service (GDS), Expedia, Mobile Web, etc. Provides a way for hotels to control the allocation of inventory and rates across all distribution channels … Continued

Complimentary Room (Comp) is another service that hotels provide to demonstrate goodwill and attract guests is the offering of complimentary stays, hence it is free occupied guest room which no price is charged provided by the hotel to any guest, often for marketing purposes, but not related to an existing contractual relationship. Not classified as complimentary … Continued

A competitive set consists of a direct group of competitors hotels that compete with your property for business and is selected with the purpose of benchmarking your performance against the competition, by which a property can compare itself to the group’s aggregate performance in terms of Occupancy, ADR, and Revpar . There must be a … Continued

Cost of Walk (COW) is the cost of turning away a guest is a situation when a guest arriving at a hotel is unable to be accommodated and has to be “walked” /turn away to another property. This condition arises as a result of many factors from overbooking to emergency services. The cost of compensating … Continued

Continental Plan (CP) is an Indication to show that the quoted room rate includes a daily continental breakfast. The hotel can either affix a breakfast menu of its choice or provision for a buffet breakfast in the dining area. Again, whether the breakfast is served by the room service or in a common dining area … Continued

Cost Per Gross Booking (CPGB) is the average cost incurred for each reservation booked, regardless of the number of room nights generated at the time of booking. CPGB  (Cost Per gross Booking) Calculation CPGB is calculated by dividing total operating expenses by total number of booked rooms. Formula: CPGB = Total Rooms Departments Cost ÷ … Continued

Cost Per Net Booking (CPNB) is the average cost incurred for each reservation booked other online or on hotel via the reservation or the front office less cancellations, regardless of the number of room nights generated at the time of booking. CPNB   (Cost Per Net Booking) Calculation CPNB is calculated by dividing total operating expenses … Continued

Cost per occupied room (CPOR) is a formula used to calculate the average cost of a guest occupying a room for a given time period. It is a key performance indicator that helps hotels measure and analyse if the operating cost for each room is reasonable or not and understand profitability. As a hotel lowers … Continued

Cost of sales ratio is used to examine food and beverage operations in a hotel. It applies directly to the cost of goods sold. It provides a metric for comparing a hotel’s expenses from sales activity against total revenue, usually calculated on a monthly basis. By measuring the relationship between selling costs and the end … Continued