"Knowledge is Power, Let us Share it"

Best Available Rate is the lowest rate of the day offer by the hotel that is available for guests to book. The BAR rates are available to the general public guest, does not require pre-payment and does not impose additional cancellation fees or change penalties and/or fees, other than those imposed as a result of a hotel property’s normal cancellation policy, it is flexible rate that varies on a day-to-day basis depending on the demand.
The BAR pricing strategy is an attempt by hotels to remove the confusion among guests caused by the complex pricing strategy including various clauses with many different prices, it’s also commonly used for comparison between hotels/ comp set.
There are 2 ways to find the BAR price: either by setting a fixed price or by going dynamic following the price ceiling and price floor concept. The price ceiling is the highest rate for the room and the floor price is the lowest possible rate for the same room.
It is the basis of setting the room rates and includes the price of only the room. It does not include corporate discounts or breakfast charges or anything. It is exclusively the best rate guaranteed for a particular room type on a particular day. The best practice to set the BAR rate is via a percentage or a fixed markup above/ below the floor price and ceiling price.
The BAR price depends on the following 3 factors:

• Occupancy rate
• Season or day of the week
• Events

Business-to-business (B2B) describes a transaction where one company sells a product or service to another company.
In the hospitality industry, Business to Business (B2B) distribution is referred to the sale of rooms of a hotel to another business party like OTA, travel agent etc. , Examples of B2B bookings are those that arrive from Tour Operators, Travel Agencies, and Wholesalers.
Business to Business also used by the hotels to outsourcing hotel staff from a company, wholesale food purchasing, hotel maintenance performed by an outside company and company hotel bookings.

Business to Customer this describes the sale of products or services from a company to an individual customer or consumer.
In the hospitality industry Business to Customer most common way that hotel sales are made, which is why it is important to target this demographic when advertising and promoting a hotel.
B2C consumers are independent and/or leisure guests and are more likely to stay for longer periods of time, spend more on extra services and pay for room upgrades.

There is two different meaning for BB, one as a type of accommodation and the other as meal plan.
Bed and breakfast (typically shortened to B&B or BnB) is a small lodging establishment that offers overnight accommodation and breakfast. Bed and breakfasts are often private family homes and typically have between four and eleven rooms, with six being the average In addition, a B&B usually has the hosts living in the house.
Bed and Breakfast are also used to describe the level of catering included in a hotel’s room prices, as opposed to room only. it is an overnight accommodation type which provides an overnight stay as well as the first meal of the day (Breakfast), where only breakfast is served included in the price., Other meals are usually not offered Also known as Continental Plan.

Banquet Check is a check that is presented by the hotel to a meeting planner at the conclusion of the event. in reference to a group booking/event It will include all event-related charges i.e., Food, Beverages, rental. Etc

Booking engine is an online application on hotel websites and social media pages that provides supplier availability of hotel rates, descriptions and reservations to the end user to capture and process direct online reservations, and to optimize hotel sales strategy and maximize profit.
An OBE displays rates and allocations in real time and shows the customer an immediate confirmation of the product / service booked. The engine shows its maximum potential if used together with a CRS / PMS or a GDS. It serves as an interface.
Online booking engines can combine multiple services (like hotels, flights, rental cars etc.) and may be integrated from a 3rd party vendor (like Expedia, Bookings.com etc.) into the website. They can also be a standalone application (booking possibility on a hoteliers’ website), in which case, it is mostly directly connected to the hotels system (CRS / PMS).
The main advantage of a booking engine is that it provides an easy access to payment processes and purchase systems. The guest can finalise a booking easily, without any help or need of a travel agent or a hotel.

Booking.com is an online travel agency that is a part of Booking Holdings. Includes: Booking.com, Priceline.com, Kayak, Agoda.

A BEO is a contract to a group booking/event that lists all of the important details of an event. BEOs are used at most hotels and event facilities to help ensure everything is outlined and agreed on by both the venue and the event planner, includes details such as menus, audio visual equipment, room set up, time, function, room, etc. This helps ensure event planner expectations are met and helps the venue avoid costly room resets or concessions.
Since BEOs are created for each individual event, a full or multi-day booking may include multiple events and therefore multiple BEOs. The BEO packet is typically distributed to the concern hotel operational department a few days before the event and is reviewed and updated as necessary based on any last-minute changes.

Back of House are the areas of a hotel that have little or no direct guest contact, such as kitchen areas, engineering and maintenance, and the accounting department.

Bottom rate represents the price below which a property can never afford to sell its rooms. It is the minimum possible rate a property can set without losing revenue.

Best Rate Guaranteed (BRG) programs are used by hotels chains around the world to guarantee that a hotel guest is given the lowest available rate for a night or a multiple-night stay. If means that if guest find a better, publicly available rate on another third-party website i.e. OTA, travel agent or wholesalers, than the official hotel website, guest can submit an online BRG claim. If your claim is approved, not only will the lower price be matched, but guest will also receive an additional 10 to 25% discount (depending upon the hotel chain). Important: a BRG will only be approved for a booking of an identical room type, date and length of stay, and reservations must be made directly on the official hotel website (not on third-party websites)

Booking Window is the period of time between the reservation is made by the guests or a group and the actual arrival date to the hotel for their stay, is similar to Lead Time. Or more simply, the booking window describes how far in advance guests book their stays.
A booking window is an important metric of a hotel’s revenue management. Knowing its average value and predicting customer demand, revenue managers can set optimal prices to drive maximum profit.
Different market segments can have different booking windows. It is important to consider the booking window make proper pricing decisions. For example, prices can be raised for high-demand periods at the moment when guests are likely to book their stay.

Benchmarking uses a number of hotels KPIs to make comparisons against competing hotels. Examples of KPIs used in hotel benchmarking include prices, level of service, product offerings, location, and distribution channels.
Benchmarking is a technique for hotel revenue management. It allows a hotel to compare itself against competitors. Specific comparisons can be made based on hotel rates, products and services, and more. Benchmarking can be used to make specific changes that help a hotel or property compete better with other hotels. The most obvious use for benchmarking is to make rate comparisons, but revenue managers can also compare overall value offered by competitors versus the value offered by their hotel or property.

Blackout Dates are dates in which no discounts, conventions and promotions of any kind are active. They coincide with periods of high demand during peak season or, occasionally, when large-scale events attract higher-than-expected occupancy rates during the year.
Blackout Dates also referred to pricing and policies that exist during certain high-demand periods. Hotel rooms are still sold during blackout dates, but usually at high prices and with strict booking policies attached

Booker is the person, who regularly makes the booking/ reservations for himself or for others , the person who book on behalf of others might be an administrative assistant or individual travel agent.

Booking Curve is graph that helps hotel revenue managers to show how hotel bookings materialise over a certain period in time. These curves are usually displayed in graph form and can include several data items It includes data like room pickup, bookings, number of bookings, days before arrival, yielding capacity and availability. By converting those data from pick-up reports into graph form, revenue managers can make better decisions to improve hotel operations and increase revenue.
The data that is compiled to create a booking curves graph is usually calculated using a hotel’s Property Management System (PMS).
Booking Curve Calculation: A booking curves graph typically has ‘Days Before’ on the horizontal axis and ‘Rooms Sold’ on the vertical axis. Data from your Property Management System (PMS) is used to plot points on the graph and a connecting line helps managers see larger trends in the data.

Booking Pace is a key metric for revenue manager and reservation department that indicates how frequently bookings are made on a specific date over time. This booking “rhythm” reveals whether the current offer (i.e. rates) is suitable for the current demand. It is therefore a useful tool for monitoring and optimizing dynamic pricing.
Booking Pace also refer to  the rate at which reservations are made for a particular future date. Usually, it is represented by an upward-sloping exponential curve.
It is important to monitor even the slightest variations in the curve as they may indicate potentially important information about the future demand. For example, if 30 days before arrival a normal booking pace is a pickup of 10 rooms a day – a pickup of 15 rooms (few days in a row) can indicate that the demand at the current price is 50% higher than anticipated. In this case price should be adjusted immediately (ceteris paribus). Booking pace also helps hotels forecast labor needs more accurately.

A business mix usually refers to the ratio of different types of guests a hotel caters to / different market segments that occupy a hotel, e.g., leisure travelers, business travelers, families with kids, luxury lovers, adventure seekers, etc. Depending on their location and amenities, some properties choose to focus mainly on one clientele type, while others have a more diversified business mix of several categories.

A Boutique Hotel is a small Intimate, luxurious, Historical, and classic buildings hotels offering personalized accommodation and services, remodelled into boutique hotels with usually have less than 30 rooms. It has a unique character and distinguishes itself from other hotel brands. It true to its heritage, it provides guests with great and ultra-personalized service and is typically situated in a fashionable urban location.

A property’s budget defines its revenue targets. Annual Financial Plan – A budget is prepared for a hotel’s management and ownership team to estimate the hotel’s income and expenses over a set period of time. The budget is built based on a hypothetical “simulation” of likely market scenarios combined with the property’s expected strategies and resources. To be reliable, the budget must be estimated using models and values from real historical market scenarios.

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 including OTAs, wholesalers and GDS. Channel Management (also Multi-Channel-Management) refers to the techniques and systems used by hotels in line with their distribution policy. This management method includes content management as well as data reconciliation in various distribution channels. It means the updating of the hotel information, of room rates and availabilities across all distribution channels, such as hotels website, third parties (OTAs, IDS, ADS) and the CRS/GDS.

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 rooms are rooms provided due to a trade–out arrangement, rooms provided in connection with a promotion (e.g., stay two nights, get one free) or rooms provided as part of a group contract (e.g., book 50 rooms, get one free).”

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 minimum of three hotels in any competitive set, excluding the subject hotel.
Competitive sets are used for benchmarking purposes, market penetration analyses and to help develop positioning strategies. Many hotels use rate shopping tools to compare their current pricing with the ones of their competitors in order to make proper pricing decisions.

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 the guest for this inconvenience is called cost of walking. The cost usually covers the overnight lodging expenses, taxi fare and a couple of phone calls for the guest. Most hotels also include a small complimentary gift presented to the guest. Walking a customer has implications beyond the single transaction. Customer satisfaction suffers, so does the retention, and repeat business. It might cost exponentially more if you have to relocate a person who reserved a premium product (suite, penthouse, etc.)

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 i.e. hotel main restaurant, depends on hotel to hotel. The plan is ideal for those who stay overnight but have other engagements all day out. Under Continental or CP Meal Plan, room rent and complimentary free breakfast are included in the room rate. And in case guest decide to have dinner and lunch at the hotel, guest always have the option to pay extra.
Continental Plan is supposed to include a continental breakfast. However, hotel nowadays use the term for any kind of breakfast. Most of the hotels have breakfast buffet (for all meal plans) with tea, coffee, milk, juices, eggs, pancakes, local dishes, breads, and corn flakes etc.

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 ÷ number of total booked Rooms
Example: Hotel total cost was $10,000 and you booked 50 booked rooms, your CPGB would be $200
$10,000 (cost) ÷ 50 total booked rooms) = $200 (CPNB)

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 by total number of metallize net booked rooms.
Formula: CPNB = Total Rooms Departments Cost ÷ number of total booked / occupied Rooms
Example: Hotel total cost was $10,000 and you sold 50 booked occupied rooms, your CPNB would be $200
$10,000 (cost) ÷ 50 total (net booked / occupied rooms) = $200 (CPNB)

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 its CPOR, it can increase profits margins per available room and/or become more competitive. Examples of line items used to calculate the cost of an occupied room include housekeeping, laundry, heating and air conditioning, Internet, cleaning supplies, and anything else related to keeping a room ready for guests.
Understanding CPOR helps revenue managers measure costs, evaluate whether those costs are reasonable, and develop strategies to reduce them. And by reducing CPOR, hotels can increase RevPAR and GOPPAR, which are essential hotel KPIs for measuring a property’s overall profitability.
CPOR   (Cost per Occupied Room) Calculation
CPOR is calculated by dividing total operating expenses by total number of occupied rooms.
Formula: CPOR = Total Rooms Departments Cost ÷ number of total Sold / occupied Rooms
Example: Hotel total cost was $10,000 and you sold 50 occupied rooms, your CPOR would be $200
$10,000 (cost) ÷ 50 total (sold / occupied rooms) = $200 (CPOR)

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 value of the sale, revenue managers can see how much actual revenue is gained per sale and make decisions that can improve operational efficiency and increase profitability. It also provides data on how much of the final value from sales goes back to covering costs that a hotel takes on to make a sale.
COSR    (Cost of sales Ratio) Calculation
Cost of sales ratio is calculated by dividing the total costs of goods sold by total sales. The final calculation is typically multiplied by 100 to give revenue managers a percentage ratio. The total cost of goods sold factors in variable costs and fixed overhead expenses.
Formula: COSR = total costs of goods sold ÷ total sales X 100
Example: Total Costs of Goods Sold = $50,000 Total Sales = $150,000 Cost of Sales Ratio = ($50,000 (Cost of Goods Sold) / $150,000 (Total Sales)) x 100 = 33.3%

Conversion Rate is the rate at which visitors to the hotel website complete the predefined goal which is making reservations. It is calculated by dividing the number of goal achievements by the total number of visitors. For example, if 100 people visit hotel website and 10 of them complete the booking process then the conversion rate is 10%.
The average hotel website conversion rate hovers around 1.5-2.5% meaning that for every 100 visitors, 1-2 users will convert into bookings.
we should not only consider the reservations that are created via the website, but all of them! noting that in revenue management, CR is an indicator of price acceptance. The higher the price acceptance, the higher the conversions and vice versa. For this, we need to check how many of hotel guests who start a booking process in the booking engine actually finish it.
CR (Conversion Rate) Calculation
CR is calculated by dividing total hotel website visitors by total number reservations made.
Formula: CR = Total number of website visitors ÷ number of total rooms booked
Example: Hotel website visitors 10,000 and 50 rooms booked; your CR would be 200
10,000 (visitors) ÷ 50 total rooms booked) = 200 (CR)

Central Reservations Office (CRO) is an automated system display availability of hotels and allows reservation agents to receive reservation requests by phone and to handle them immediately, large hotels are typically using central reservation offices to distribute reservations across the entire chain, it allows a chain hotel’s reservation agents to receive reservation/booking requests coming via phone, mail, brand website, travel agents, corporate clients and walk-ins, etc. It works as a real-time booking console for agents to find out room availability across properties, it is capable of booking hotels in different destinations with one single call.  it can also to book several travel components, including air, car, and hotel room…

Central Reservation System (CRS) is a reservation system / platform used to maintain hotel information, rates, and inventory status to processes and manages reservations for one or multiple hotels and to centralize reservations, distribution, rates and inventory in real time. It is a key tool in order to streamline the operational processes behind running a hotel because it connects and centralizes information from the property management system, different distribution channels, and call centers all in one platform.
CRS help hotels to manage online and offline bookings. With the help of the channel manager, A CRS provides hotel room rates and availability for many different distribution channels such as the GDS, IBE, OTA, 3rd party websites etc.

Closed to Arrival is a room inventory control function or yield management restriction that prevents new reservations from arriving to the hotel on that date, in case a guest checks the hotel website with such a day as check-in date, it will show as not available. However, guest can book rooms arriving before the CTA date and stay through such date.

A room inventory control function or yield management restriction applied to a rate plan for specific set of days where guests cannot make their reservation for with this date as check-out.

Corporate travel management sometimes it refers to TMC (Travel Management Company) is an internal company’s structure to facilitate business travel and all business trips for the entire corporate organization. This includes planning a business trip, organising a corporate event, or any other necessary task for the corporate traveller, even negotiations with all vendors including hotels for the accommodations, day-today operation of the corporate travel program, traveller safety & security, credit-card management and Ensuring the process is handled properly and according to compliance where all this must be done without jeopardising business productivity., Few examples of the CTM is BCD Travel, CWT, FCM Travel, Travel CTM and Corporate Traveler.

Cancellation is The CRS transaction generated by a request to cancel an existing confirmation Number(s) and/or segment(s) of a reservation.
Hotel cancellation policies offer hotel guests the opportunity to cancel their booking up until a certain number of days before check-in. Once this date has passed, the hotel might charge the guest a set cancellation fee, a percentage of the booking, or the full amount.

Cancellation rates are calculated as the percentage of reservations that are canceled by the guest prior to arrival. hotel might track cancellation rates by those that are a full refund or that incur a penalty fee. Tracking the cancellation rate is important to track trends that may be an indicator of the policy and the need to adjust. Cancellation rates are also included in the revenue trends for forecasting which even can be traced by segment wise.

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.

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

Capacity is the set number of rooms in the hotel has: i.e., the maximum capacity.

Chain Code is a two-letter identification code which is used mainly by the GDS to identify chain operated hotels.

A hotel channel manager is a technology software solution that will automatically update hotel availability and rates in real-time on all business sites which sell the hotel and allow the hotel allow hotel to sell rooms on several online booking sites (channels) simultaneously (Examples of these businesses are Online Travel Agents (OTAs – booking.com, Trip Advisor, Expedia), Standard Tour Operators (STOs – Flight Centre, Bob’s Travel), Travel Agents (Intrepid Travel, Ker & Downey), the Global Distribution System (GDS – Galileo, Amadeus) Channel manager is the technological equivalent of having a global sales team and a 24/7 reservations department and can assist hotels to:

• Supplying OTAs, STO’s and the GDS with rates, availability and room types
• Receiving all guest booking information from OTAs, STO’s and the GDS
• Updating availability and rates on the PMS and the Channel Manager in real-time
• Automatically inserting confirmed reservations into the Property Management System

Channels are the various methods that customers use to make hotel reservations also refers to which way of distribution a hotel reservation is acquired. There are two types of channels – Electronic and traditional/off line.

Electronic Channels refers to anything acquired without the direct need for human intervention, e.g. OTA business (through a Channel Manager interface), GDS, travel agents and hotel branded website.

Traditional Channels refers to other channels such as over the phone, email and face to face.

Consortia and Travel Management Companies (TMCs) are Associations or Marketing organisations or groups of companies’, mostly can be groups of independent travel agencies that engage in common activities to achieve joint objectives which link together small to medium sized independent travel agencies to leverage purchasing power and marketing opportunities, they often negotiate preferred rates with hotels for the benefits of their corporate clients. Eg. American Express, Carlson Wagonlit, BCD Travel or HRG.

Component Room is a configured room type comprised of two or more room types is called a Component Room. The Component Room is made up of multiple inter-connecting rooms (two or more room types) that define the new Component Room type. When a reservation is made for a Component Room, PMS deducts one room from the Component Room room type, as well as one room from each of the component room’s physical rooms. Component Room functionality can be used in a PMS-only environment or with PMS and ORS combined (in ORS, Component Rooms are sometimes called Component Room Suites or Virtual Suites), although the configuration and operation differs in the two environments.

Commission is the percentage of charge or flat fee that a hotel pays to third parties or intermediary (travel agents, OTAs) for each room reservation they facilitate. It is usually a fix percentage of the room rate, that must also be added to the cost of distribution.
Commissions are typically levied by OTAs. They typically range between 5% and 20%, also levied to a travel agent receives from the supplier for selling transportation, accommodations, or other services on behalf of the hotel.

Commissionable is the rates for rooms that are booked by retail or wholesale travel agents for which the hotel agrees to pay the booking agent a booking commission (usually 10 percent) Travel agents and tour operators have the option of choosing between commissionable rates & Static/Net rates from hotels. The Commissionable rate applies to scenarios where hotels provide the travel agents with the option to sell their rooms for a fixed sum decided by the hotels, for which the travel agents receive a set percentage as commission.

Constrained demand can mean that the property’s capacity doesn’t meet the real demand (e.g., in peak season). It can also mean restricted demand due to setting various constraints (e.g., increasing prices or implementing yield management restrictions such as Minimum Length of Stay or Closed to Arrival). Revenue managers sometimes intentionally constrain demand to maximize profit.
Constrained demand, is the demand you get when adapting factors such as price. By increases in price, you are changing the demand, in a way constraining it, thereby allowing less customers to book your hotel.

Condominium hotels, also known as condo hotels or condotels, are basically buildings that serve as both condominium & hotel that have space inside, such as a room or suite, that can be purchased the condominium units by investors so that it can either be used as a full-service vacation home or owners can earn high profits while turning over most supervision issues to the hotel management. When people stay in their unit, which is inside of a high-end hotel, the owner receives a portion of the profit while the hotel handles all guest services and interactions. The unit owners may then earn through revenue-sharing arrangement There is an agreement between the owner and hotel management that spells out the responsibilities of each.

Confirmation numbers are unique numbers generated for a reservation once the reservation has been completed and saved assigned to each reservation made through the CRS or PMS provided to the guest. Hotel reservation or front office staff   can use conformation numbers to quickly search for reservations, to reference reservations, and to confirm reservations with guests.

Consortia and Travel Management Companies (TMCs) are large groups of Travel Agencies often driven by multinational companies that have joined together to form a Consortia, Examples of Consortia are American Express, Carlson Wagonlit, BCD Travel or HRG.. Originally started to assist smaller Travel Agencies, Consortia have grown to become major players in the travel industry. By joining Consortia and TMCs, Travel Agencies can increase the effectiveness of marketing to their customers by offering competitive rates at hotels worldwide.
The consortia rate is negotiated between the hotels and travel agencies and is only available to contracted consortia. By participating in Consortia and RFP Services, your RFP process becomes more streamlined and effective because you won’t spend valuable time responding to bids, worrying about missed deadlines, or dealing with incomplete RFPs.

Consumed revenue is the amount of revenue actually generated from reservation activities in which the guest has completed the stay that recorded once a customer has checked out and paid for their hotel room. In other words, consumed revenue depends on when the customer actually completes their stay, rather than when the hotel is booked. This has important implications for accounting purposes. Since this revenue is not recorded until after the customer completes his/her stay, consumed revenue also takes into account any cancellations that may occur after the room has been booked. This is an important internal metric that hoteliers view as their true source of actualized and recordable revenue.

Consumed Room Nights is the total number of room nights actually sold in which the guest has completed the stay, where room nights are the number of rooms that are sold or occupied for a given period of time.

Consumed Stay is a stay in which the guest has actually checked out of the hotel, where stay is the period of time that a customer stays in a guest room of a hotel.

A continental breakfast is a small light morning meal typically consisting of pastries and baked goods, fruits, toast, and coffee. The term “continental breakfast” refers to the continent of Europe and the style of breakfast enjoyed in European cultures.
Serving a continental breakfast in your hotel or bed and breakfast can be a great way to bring in new customers while staying within your budget. Be sure to explore other breakfast variations to accommodate for the needs of your customer base.

Hotel Corporate ID / codes is a unique booking numeric identifier assigned by the hotel chain to corporate companies that allow companies to book rooms for their employees, contractors, or other associates (like corporate guests or on-site interviewees) at a discounted rate , normally hotel provide discounts rates of 10–15% on the best available rate for a hotel stay if guest book via the hotel website, or all booking request send to the hotel reservation office, and apply the special discounted contract rates, in all means corporate rates should be lower than the best available rates either online or offline  .

The average cost incurred for each room night reserved through advance bookings.

The average cost incurred for each room night occupied.

Refers to an amount, fees or commission paid to the credit card companies on the basis of a contracted percentage of credit card charges accepted, Typically, hotel payment processing fees on transactions range from about 0.7% to 3.5%, and that eats into profits.

Cut-off date (which are very similar to release dates), is the date hotel set a time limit when room or group block / allotment reservations must be made, and the guest actual arrival. By “made,” we mean either the date rooming list is due to the hotel or, payment methods to guaranteed the booking, otherwise the rooms will be released back into the hotel inventory for the hotel to sell via other channels.

Days before arrival or Days to Arrival (DBA) is  the number of days remaining before the guest expected arrival date to the hotel, it is used to measure information such as a booking pace, hotel performance and forecast performance, also used in booking policies for corporate, individuals and group booking in regards to cancelation or prepayment to identify from which point in time on a specific rule applies. For instance, full payment needs to be made 20 days before the guest arrives to the hotel.

Direct connect availability (DCA) is a Sabre’s seamless connectivity product that allows users to check rates, availability and other property information drawn directly from hotel CRS.

Day Delegate Rate (DDR) is the rate quoted/charged by a hotel for a rented venue/meeting room per delegate/guest for a full day/half day meeting including room rent, lunch and coffee breaks. Rate may also include basic audio-visual equipment and other meeting materials.

A ’24-hour’ DDR will also include dinner, overnight accommodation and breakfast.

Demand-based pricing is a pricing strategy, in which rates depend on market demand. Basically, many hotels alter their rates based on demand to maximize revenue. For example, when there is an event in a city, there is a surplus of demand for rooms, which leads to an increase in hotel prices in that city, and since revenue management is based on the supply and demand theory, which allows hoteliers to set pricing based on demand. For example, if a customer searches for the earliest dates available for reservations, the price for those days will be greater than the price for a later date. Hoteliers can increase their profits by increasing the price for those soon-coming dates, as the demand is higher for those dates

Demand Generators is a specific strategies or programs that attract or drive demand to the area or a specific hotel. When there is not sufficient hotel demand to reach a level of occupancy and revenue  the hotel can take action to generate more demand (shift demand to his hotel) those action can be

• Promotions (think via flash sales websites)
• Packages (sold directly via the hotel, ota or other channels)
• Discounts (stay 4 pay 3, stay 2 20% off)

Hotel demand is the level of consumer interest and need: demand for accommodations, demand for family rooms, demand for conferencing, event space, in simple it is the hotel business anticipated for future days.

The demand for hotel rooms depends on various factors, such as the income level, preferences, and travel behavior of potential customers, To analyze the demand for hotel rooms, revenue manager need to identify and quantify the different segments of customers, such as leisure travelers, business travelers, domestic tourists, international tourists, etc., and their characteristics, such as price sensitivity, loyalty, seasonality, etc. revenue manager  also need to monitor the external factors that affect the demand, such as the economic situation, the political stability, the health and safety regulations, the environmental issues, the cultural events, etc.

A demand calendar is a revenue management tools use to show past and future demand mapped together, based on historic and future events that could impact business. Positive and negative demand generators and exceptions must be mapped and updated regularly on the calendar. When you are assessing a forecast some of the variables to review are competitor activity, seasonality, reservations on the books, events, economic situation and occupancy.
Revenue manager should aim at 5% maximum (+/-) variance for the next month, variance between your forecast and the actual results. Take the time to analyse the variances to understand, learn and improve your hotel forecast.
A basic version of a demand calendar should contain the following information;

• RevPAR last year (Revenue per available room)
• Meeting room bookings
• Demand level indicator last year (High, Medium, Low, Distressed) by month
• Demand level indicator this year
• Public holidays
• School holidays
• Exceptional demand indicators

Demand Forecast for hotels is the act of Anticipating, estimating, calculating and predicting the future guest demand for hotels uses historical data and predictive data analytics to predict demand over a defined period. This helps hotels in managing inventory in a much more effective fashion. There are three types of demand forecasting for hotels, revenue forecasting, financial forecasting and operations forecasting.

Denials is a notification that the hotel has been shopped on the hotel’s direct booking engine / website and a rate was not given because the hotel was sold out or a restriction was placed on the shopped date, or it is a reservation request by a guest and it is not booked due to lack of availability of inventory or due to price issue .

Direct channels are any booking and revenue generated through the hotel owned channels i.e., receiving booking through hotel phone number, hotel email address, hotel website, hotel social media accounts.
Direct channels are usually a combination of a few critical blocks, the most important to increase hotel direct booking are: a good website, a booking engine, a payment gateway, and the marketing tools and strategies that support these.

Direct Connect is a commonly used standard interface is the so-called XML between the SynXis CRS and a third-party travel partner, which enables real-time, two-way communication link between a hotels reservation system and a third party (for direct rate and availability updates). meaning a kind of technologic interchanges and synchronises data across multiple distribution channels, such as between a Hotel CRS (or PMS) and OTAs. It means that the OTA reservations are then automatically sent to the hotel via the CRS / PMS where direct connect  enables hotels to better differentiate their products by providing information such as channel specific rates and inventory directly to retail points of sale.

Displacement analysis is a calculated decision to ensure hotel can take the correct piece of business or not. The business analysis (primarily group) based upon the total number of room nights and revenue generated of the business versus the value of the transient business that would be displaced if the business were accepted. The group value includes all food and beverage spending, meeting room rental and any additional outlet spending minus any costs involved. Sometimes it would be prudent to deny a group booking in favour of leaving rooms available to transient customers and walk-in guests, however revenue displacement calculations should include the following:

• Pick up trend for the hotel
• Length of stay
• Length of stay impact on housekeeping costs
• Shoulder nights
• Food & beverage sales
• Commission
• Be aware of pickup trends

Distressed Inventory is the number of hotel rooms that are not expected to be sold at full price specially in the same day of arrival , for these rooms, hotels often significantly reduce prices to encourage consumers to book last-minute and to avoid their rooms going unoccupied following the concept of “Empty Rooms doesn’t Generate Revenue” . Hotel inventory can become distressed for a number of reasons, but the most common is last minute cancellations and expected no-show.

Distribution Channel is basically anywhere a hotel or hotel chain can sell rooms to potential customers, whether that’s online or offline to show the original method in which reservations are booked so it is a mix of direct channels, such as a hotel’s website, and indirect channels such as online travel agents (OTAs), Global Distribution Systems (GDS), Metasearch sites and wholesalers are typically used.

Distribution Strategy is a hotel plan of action for selling hotel rooms profitably through a variety of channels, determining when and through what channels to sell rooms based upon the cost of acquisition of the individual channel. The goal is to increase visibility with consumers to drive occupancy by driving business to lower cost acquisition channels during high demand periods, hotels can maximize their profitability using a mix of direct channels, such as a hotel’s website, and indirect channels such as online travel agents (OTAs), Global Distribution Systems (GDS) and wholesalers are typically used.

Double Room is a room accommodating 2 guests. May include a double or queen size bed.

Double Deluxe Room is a larger room with a lounge area.

Double Occupancy Rate  is based on a per-person charge for 2 people in a room.

Dynamic packaging is a method used in package holiday bookings to enable consumers combines inventory (rates and allocation/availability) from multiple sources, e.g., hotels, rental cars and flights in an online one application instead of purchasing a pre-defined package i.e Expedia.com. It allows the customers to create and book a customized itinerary resulting in a higher flexibility compared to pre-packaged holidays.

Dynamic Pricing is a revenue management strategy used to improve hotel revenue and ensure maximum occupancy for the hotel based on supply and demand. It is also known as “time-based pricing” due to the fact that these prices are manipulated in real time based on algorithms, these algorithms take into account the fluctuations in data of consumer demands, competitor pricing, seasonality, current occupancy, and other external factors to increase hotel revenue. it is always depended on flexibility for rooms within the same category at a hotel can be sold at different prices at different times – the price does not always have to remain locked.
When demand is low, room rates are lowered in an attempt to capture their fair share of the minimal demand in the market. When travel demand is high, however, such as during an area-wide special events or during peak season, room rates are raised—reflecting the heightened demand.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is an indicator of a hotel’s profitability, calculated as revenue minus expenses, excluding tax and interest, means the net earnings or profit made by the hotel, after deducting all the expenses from the total revenue. All the expenses include the salary of the hotel’s employees, operational expenses, asset costs, and many others.
Terms of EBITDA are explained as:
Earning: Earnings mean the sales done by the hotel.
Interest: Interest paid by the hotel to any financial firm.
Taxes: Any kind of taxes that are eligible for the hotel industry paid to the government.
Depreciation: Reduction in the price of the asset with the time due to tearing.
Amortization: Amortization means the payment of the loan installments.
EBITDA used to evaluate the profitability of a hotel’s operations. It is specifically used to analyze the profits of the products and/or services sold at a hotel property. It gives revenue managers a useful metric for comparing a hotel property with other properties owned by the same chain. It also allows for comparisons against industry averages. Furthermore, it can provide managers with a shortcut to estimate availability of cash flow to cover long-term debt payments on assets.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) Calculation
EBITDA can be calculated in two ways. The first is by subtracting expenses from revenue. In this case, expenses do NOT include interest, taxes, depreciation, and amortization. The second is by adding net income, interest, tax expenses, and depreciation and amortization together.
Formula: EBITDA = Total Revenue – Expenses (excluding interest, taxes, depreciation, and amortization).
Example1: In this example, we’ll use the latter of the two formulas mentioned above. EBITDA = Net Income + Taxes + Interest Expense + Depreciation and Amortization (D&A) Net Income = $2,000,000 Taxes = $325,000 Interest Expense = $6,000 Depreciation and Amortization (D&A) = $3,000 EBITDA = $2,000,000 (Net Income) + $325,000 (Taxes) + $6,000 (Interest) + $3,000 (D&A) EBITDA = $2,334,000
Example2: Let’s say you and your friends sell lemonade from a stand.
You make $20 selling lemonade, but you spent $5 on lemons, sugar, and cups.
You also spent $5 on flyers to advertise your lemonade stand.
To calculate your EBITDA, you would start with the $20 you made selling lemonade, and subtract the $5 you spent on lemons, sugar, and cups.
This leaves you with $15. Then, you would subtract the $5 you spent on advertising.
This leaves you with an EBITDA of $10.

EBITDAR Like EBITDA, it is a key metric for evaluating a hotel’s profitability and performance. However, EBITDAR is more widely used for hotels or properties that have undergone restructuring within the past year.
EBITDAR can be used alongside with EBIT and EBITDA but should not be confused together. It is also a useful KPI for hotels, restaurants, casinos, and other businesses that have unique rent costs. The purpose of EBITDAR is to measure a hotel’s core operational performance. By removing the costs of rent or restructuring, EBITDAR provides a better analysis of the profitability of a hotel’s ongoing operations to It helps analysts understand the ability of the hotel to generate profits, even after spending huge rent or restructuring costs as a part of its operations.
EBITDAR (Earnings Before Interest, Taxes, Depreciation, and Amortization and Rent) Calculation
EBITDAR is calculated by adding net earnings, interest, taxes, depreciation and amortization, and rent/restructuring costs.
Formula: EBITDAR = EBITDA + Restructuring/Rental Costs.
Remembering that: EBITDA = Earnings before interest, taxes, depreciation, and amortization.
EBITDAR = Earnings + Interest + Tax Expenses + Depreciation and Amortization + Rent/Restructuring Costs Net Earnings
Example: if your hotel earns $1.5 million in a year, and it has $500,000 in total operating expenses, you first need to subtract operating expenses from revenue. This results in $1 million of EBIT (operating income).
Now consider that within the operating expenses there is depreciation of $10,000, amortization of $10,000, and rent of $70,000.
To find the EBITDAR, you need to exclude depreciation, amortization and rent ($10,000 + $10,000 + $70,000). This means adding it back onto your operating income.
EBITDAR = $1 million EBIT + ($10,000 + $10,000 + $70,000) = $1.09 million.

Electronic Distribution Systems (EDS) Also called online distribution). It is a type of distribution that uses purely electronic media. E-distribution is an important component of E-commerce. Encompasses all the electronic channels of distribution, which includes GDS, OTA and Web Booking Engines. These distribution channels can be accessed through the Internet, an intranet or through an interfaced connection.

European Plan or EP will mostly have the lowest tariff in a rate card, simply because it includes only room rent and no meals. means only the stay is included in the rates and you will have to pay extra for using the dining facilities at the hotel. In general terms, it can be called the “Room Only” Plan.

Estimated Time of Arrival (ETA) is the time when a vehicle or person is expected to reach its/their destination. The calculation is based on the planned duration of the route. In logistics, it refers to the transportation of goods and is typically used to inform customers of the time the vehicle carrying their freight will arrive.

Early Arrival is used to describe a guest arrives to the hotel before the specified date or time of their reservation. An early check-in at a hotel is an arrangement which allows a guest to check in earlier than the normal time.

Early Booking is a room booking which are made a long time in advance before the guest arrive to the hotel where it could be months. Many properties encourage early bookings by offering advantageous rates with offers such as percentage of discount , pay 6 get 7 ….etc and to create advance base occupancy.

Early bird discount can be defined as a limited-time offer by hotels that encourages guests to book in advance and enjoy a % of discount, Early bird pricing is best used ahead of busy times, when guest attempting to book beyond 2-6 months in advance, such a rate usually means guest have to pay fully rate before arrival and a fee cancel or change the booking at any time, while paying the regular rate usually allows cancelling or changing the booking for free up to a day or two before..

E-commerce also known as Electronic Commerce (or EC) eCommerce refers to the buying and selling of accommodation and related services over the internet. There is a wide range of online business activities such as online marketing, social media management, hotel online bookings, etc. eCommerce sites include hotel websites and booking engines, online travel agencies (OTAs), metasearch engines, and other online platforms where hotels advertise and sell rooms.

E-marketing is also known as Internet marketing, web marketing, online marketing or digital marketing. E-marketing is the marketing of hotel products and services through the internet. It makes it easy for businesses to reach a wide range of potential customers due to the large number of people using the internet today.
E-marketing can be broken down into eight main categories:

• Search engine optimization (SEO)
• Pay-per-click (PPC)
• Social media marketing
• Content marketing
• Email marketing
• Mobile marketing
• Affiliate marketing
• Influencer marketing

English breakfast is a heavy breakfast. This breakfast service type is usually served in the UK and Ireland. It comes from different regional variants with different names depending on the area.

An executive floor in a hotel is a special floor or section of a hotel that is reserved for premium or luxury guests. These floors typically offer a higher level of service, amenities, and privacy than other parts of the hotel. Some of the features that are commonly found on executive floors in hotels include:

• Exclusive check-in and check-out services
• High-end furnishings and decor
• Spacious and well-appointed rooms or suites
• Access to a private lounge or restaurant with complimentary food and drinks
• Concierge services
• High-speed internet access
• Meeting or conference facilities

Executive floors are often marketed as a way for guests to experience an elevated level of comfort and luxury during their stay. They are typically more expensive than other rooms in the hotel, but offer a range of benefits and services that are designed to make guests feel special and well-cared for.

Executive Room is part of the executive floor focused on providing a top-notch experience. It means that it must have all the facilities needed by business travelers during their stay in any city with a touch of luxury. That’s why many hotels do their utmost to fulfill their executive rooms with high quality equipment in order to deliver an experience that fits the needs of this particular target. In this type of rooms, a traveller can find a comfortably king size bed, coffee facilities, work desk and safe box just to mention a few things available Usually offers exclusive services and amenities.

Extended-stay hotels are also known as long-term stay hotels that offers guest services for long periods of time and often offer weekly rates These are beneficial to people who need to stay for a week or longer, such as businessmen on extended trips, families on long vacations, or people who are searching for more permanent accommodations.

or Extended Stay is about a guest check out date is due and asked to extend his stay for day or another.

Hotel extranet is hotel reservation system allow travel agents to upload their real-time hotels inventory or their partner or supplier’s hotel inventory and gives them access to put information about the availability, hotels rooms, price and other relevant data of hotel for management of online hotel inventory, booking and payments.
Hotel extranet is also known as a controlled private network that allows hotels to load inventory and rates which can be booked by customers privately or publicly. Each OTA would have their own unique extranet that they allow hotels to load rates and inventory on. Hotels pay each OTA a commission for each booking received via this platform.…….

Full board is a kind of package offer by the hotel to leisure guests who want to stay and relax at the hotel the whole day. Most mid- and upscale beach hotels and secluded resorts offer this option. Full board includes the three main meals: breakfast, lunch, and dinner, which are usually served as buffets. If hotels have multiple restaurants, they’re generally not included, or guests have to pay to dine a-la-carte.

The food and beverage department are responsible for all catering activities. F&B will usually have its own budget, management staff and specific cost and revenue centers that are distinct from the accommodation itself.

Free Independent Traveller is a term given to those persons who travel independently without any assistance of any travel agency or Tour Company and any group sometimes FIT is an Individual travel in which a tour operator has previously arranged blocks of rooms at various destinations in advance for use by individual travellers. These travellers travel independently, not in a group, usually by rental car or public transportation. In this case the guest has prepaid for their travel before arriving at your hotel. The bill (which is an undisclosed rate to the guest) is invoiced back to the agent on departure. The FIT rates are net rates supplied to intermediaries such as tour operators and travel agencies, to which they will add their own markup. This mark-up may be mutually-agreed in advance or be managed privately at the discretion of the intermediary.

Free of charge is often used in the travel industry to describe (additional) services for which the client does not have to pay for, i.e., free room upgrade to suite, free Wi-fi…etc

Full pattern length of stay restriction is an arrival-based restriction on a guest’s stay, so it is A pattern indicating whether a rate is open (available) for the arrival date and length of stay.

Fair Market Share is a metric measuring a hotel’s performance against its immediate competitors, regardless large or small the comp set, a hotel trying to make itself more competitive can use a FMS tool to compare its individual percentage to their comp set, the metric assumes an even distribution of supply, demand and revenue among all properties in a selected group and can be used during peak times, a hotel can gather important info about the performance of the other hotels in their comp set. Then, using a Fair Market Share tool, it can discover how it compared to other hotels during those busy times. This can help when planning ahead.
 (Fair Market Share) Calculation
The fair market share for a hotel is the percentage of rooms that it contributes to the market.
Formula: Calculated by dividing the number of rooms at the hotel by the total number of rooms in the competitive set (inclusive of the subject hotel). The fair share is your hotel’s number of rooms divided by the total number of rooms in the market / comp set multiply by 100
Example: If your hotel total number of available rooms is 300, your comp set total number of available rooms is 1500 rooms, so your hotel market share would be  20%
300 ÷ 1500 = 20% FMS.

Family & Friends Rate is a special rate given to family members and friends of employees or managers working at hotels, most hotel chains offer their associates either completely free (12 nights with Hyatt) or deeply discounted rates for personal stays (like what Hilton does, this is done as a benefit for employees allowing them to show their friends and family members the experiences they daily create for others.

A FAM trip stands for “familiarization trip” and are exclusive educational trips for travel agents, media personnel, and resellers. These familiarization trips provided by travel businesses such as travel operators, tour operators, and hotels with the purpose of educating about their products and services and promoting them. Those Familiarization Tour received a complimentary or reduced-rate by the hotels.

Five Star rating is a hotel rating representing the most expensive and luxury hotels/resorts of the world. These hotels/resorts may offer numerous extras like, golf course or private airport, just to enhance the quality of client’s stay,
While Five-star hotels are properties that offer their guests the highest levels of luxury through personalized services, a vast range of amenities, and sophisticated accommodations.
A five-star hotel is a hotel that provides a luxurious experience and high-end accommodations. Five-star hotels are known to be some of the most glamorous hospitality locations in the world due to the level of service they provide. Some of the services guests may find at a five-star hotel include a personal butler, doorman, designated concierge, around-the-clock room service, valet parking, spas with trained masseuses, gyms with personal trainers, live entertainment, and even child care.
Guests can choose from an assortment of heated pools and hot tubs, saunas and steam rooms, dance halls, golf courses, and game rooms for their entertainment. These locations may also feature various on-site gourmet restaurant and bar options with top-rated chefs. Five-star hotels boast their attention to detail, catering the experience to each guest, whether that be with personalized menus or by accommodating special room requests.
Five-star hotels are usually architecturally beautiful and located in state-of-the-art facilities. The hotel building and rooms typically have a theme and lean heavily into a particular architectural style, with extravagant lobbies and rooms crafted by interior designers. Each room is spacious, potentially featuring a separate living room, patio, kitchen, and minibar. Guests may have a personal jacuzzi tub, designer bathrobes, and high-end toiletries in their rooms as well. With a five-star hotel, guests are pampered during their stay, with their needs and desires are taken care of.

Four-star hotels are Luxury class hotels which may be expensive by middle class standards offer loads of special services and amenities, including concierge services, fine dining, multiple pools, and hot tubs, high-class fitness centers, bellhops, room service, valet parking, day spas, limousine services, and an array of special suites.
A 4 Star hotel has a larger range of facilities available and the design is high quality, Besides the basic amenities, these may have luxury services like; health spa and massage.
All service standards offered are aimed towards pleasing the guest. These hotels are usually located near city centres and are equipped with dining areas, exclusive facilities such as in-house gyms and swimming pools. The term 4-star can be used for various hotel types including boutique hotels, resorts, and aparthotels.
A 4-star hotel is an upscale hotel that provides amenities, activities, and extras to create a full experience for multi-night stays. These facilities are often large and located in touristic areas, such as near beaches or major cities. The lobbies are noticeably elegant, and the buildings are fully staffed with reception desk, valets, concierges, housekeeping, and kitchen employees.
Four-star hotels may also have indoor and outdoor pools, spas, tennis and basketball courts, workout classes led by instructors, movie nights, and live music. Hilton Grand Vacation Resorts, Omni Hotels and Resorts, and Westin by Marriott are well-known examples of 4 star hotels.
Rooms in 4-star hotels are spacious and comfortable, with king-sized soft mattresses and lavish hotel bedding. Along with a desk and premium furnishings, they may also include a safe, bathrobes, and slippers. Most rooms will have large flat-screen TVs with DVD rentals available in the lobby. A 4 star hotel may also be gated and feature multiple buildings on its premises, with golf-cart shuttling available from building to building.

Fenced Rates are a rate that involves certain benefits for bookers offered by the hotel under some conditions requirements and restrictions in order to make the reservation, types of fenced rates can include such as non-refundable and non-cancellable reservations, or advanced purchase reservations, Length of stay requirement and staying over a specific day of the week etc. In return, these rates are usually discounted or value-added therefore becoming attractive to the guest. Fenced rates are more easily segmented.

Flash sales is a kind of selling strategy where hotels usually use this way of discounted sales to sell distressed inventory or off-season periods with highly discounted and limited time offer/sale promotions, this kind of promotion typically lasts anywhere from a few hours to one or two days. The limited-time nature of flash sales creates a sense of urgency that encourages customers to make a purchase now instead of putting it off for later.  Flash sales can be emailing campaigns to the hotel guest contact database or through existing distribution channels such as Travelzoo, Voyage Privé, Groupon, Travel Bird, Secret Escapes.

Forecasting is statistical patterns used by the hotel revenue managers to predict demand, occupancy and revenue, based on analysis, also to predict a number of key market indicators and customer behaviors, and is done using models that range from basic to very complex. these predictions can then be used to set room rates, schedule promotions, and manage group bookings. Depending on the design of your forecasting model, hotels can predict arrivals, departures, number of nightly guests for a specified date range, and more. Forecasting in the hotel industry is used for everything from anticipating room bookings to predicted housekeeping costs.
One major benefit of forecasting is identifying potential periods of low demand in advance. When a hotel knows that it might have challenges filling rooms during a particular period, it can adapt new strategies and identify proactive solutions to meet those challenges.
Forecasting models can account for a number of factors. In a basic forecasting model, commonly used metrics include the number of rooms on the books, occupancy rate on the books, and expected pick up (number of anticipated bookings between current date and forecasted date). These metrics can be used to anticipate the number of room bookings and forecast occupancy rate for that date range. A more advanced forecasting model will provide a more detailed breakdown of the metrics mentioned above. For example, rooms on the books will be broken down by guest demographic, and room pickups will include forecasting room nights and the average room rate.

Force majeure is a contractual term that defines unforeseeable events preventing one of the parties to fulfill the terms of a contract. In other words: it is an unavoidable circumstance beyond the control of both parties of a contract, that frees one or both from liabilities and obligations.

Free sell is a practise of opening up hotel full inventory to a specific booking channel or Agent (such as wholesale). A free sell is the provision of rooms to a wholesaler outside of the original block, those rooms are considered to be sold subject to free space, hence a “free sell”. A wholesaler may also enter into a special free-sell agreement with a hotel, such agreements typically state that any time rooms are available, and the hotel is interested in taking a reservation at the wholesale rate, the reservation will be accepted, without such an agreement, no rooms are specifically reserved, or blocked, for the wholesaler. They are simply purchased freely, based upon availability.

Franchise is a common practice prevalent in the fast-food industry, this refers to the right to use the brand and the business model of a specific parent company for a prescribed period of time. It is a method for expanding a business and distributing products and services through a licensing relationship and agreements between the franchisor and the franchisee.
A Franchisor: is a company that ‘gives’ the license to a third party for the conducting of a business under their trademark. They specify the products and services that should be offered.
A Franchisee: is a company who ‘uses’ the license of the franchisor to do business under his trade name, according to terms and conditions of the contract.
Hotel franchising is an arrangement between a business owner in which hotel property is operated under a hotel chain franchise agreement.  The franchisor’s brand, distribution channels and intellectual property are used by the business owner – freeholder (property owner) or tenant – to operate the property while retaining the risks, liabilities and control of the property.
A Hotel Franchise can be vaguely compared to a chain, since it is a management agreement, that provides certain services (brand, reservation system, support, etc.) in return to follow specific regulations and procedures. In other words, the hotel brand is shared by other proprietors.
Franchise Fees – Annual fees collected by hotel brands from hotel owners for the use of their name and services, including sales, marketing and technology.

Group booking pace (GBP) is the speed at which group bookings materialize over a period of time from the group booking date to the arrival date. Booking pace is expressed as a fraction of bookings received on certain days in advance.

Gross Booked Rate (GBR) is the average rate theoretically booked for the total number of room nights reserved through advanced bookings for a specific stay by a particular agent.

Gross Booking Revenue (GBR) is a financial metric used in the vacation rental and hotel industry to measure the total revenue generated by room or property rentals before any costs or expenses are subtracted, simply it is the amount of revenue theoretically generated from the total number of room nights reserved through advanced bookings.
This metric is calculated by considering the total amount of money received from guests for room or property rentals, including base rates, add-ons, and other additional fees or charges. GBR can measure the performance of individual properties or the overall performance of a vacation rental or hotel company.

Comprehensive travel shopping and reservation platforms that pass hotel inventory and rates to travel agents and allow them to make bookings, where the main revenue drivers for hotels are the travel agency consortia using the GDSs mainly for corporate travel bookings. Generally, travel agents use to book airline, car, hotel and other travel arrangements for their customers, GDS is facilitated with older technology, not connected through the Internet it is formerly used as international reservation systems of the airline industry in collaboration with travel agencies. Besides flights, hotels, rental cars or train tickets can nowadays also be booked via the GDS.
The market is shared among 4 main global suppliers: Amadeus, Galileo, Worldspan and Sabre.

1. Amadeus: A comprehensive travel technology platform that provides booking, reservation, and ticketing services for airlines, hotels, and car rental companies.
2. Sabre: A travel technology company that offers a range of services, including booking and ticketing, as well as marketing and distribution solutions for the travel industry.
3. Travelport: A global travel technology company that provides booking, ticketing, and other travel services to travel agencies, corporations, and online travel websites.
4. Galileo: A GDS owned by Travelport that offers a range of travel technology solutions, including booking, ticketing, and marketing services.
5. Worldspan: A travel technology company that provides booking, ticketing, and other travel services to travel agencies and corporations.
6. Orbitz: An online travel company that provides booking and other travel services to consumers and businesses.
   The benefits of GDS for the hotels are:

• Worldwide exposure and Increased visibility to the hotel.
• B2B and B2C distribution.
• GDS distribution is the entry door to corporate bookers.
• Targeting all Travel Agencies independently of the GDS (distribution platform they may use).
• 24/7 travel agent access to your inventory.
• 24/7 travel agent access to your full descriptive and multimedia content.

Gross Operating Profit, or GOP, is a hotel KPI that signals the property’s profits after subtracting operating expenses. It is a useful indicator of the profitability of a hotel’s operations and should be calculated regularly for comparisons to the previous year’s to evaluate year-to-year operational performance. GOP is used to calculate a hotel’s profits before accounting for the indirect costs associated with the production of those profits. Examples of those costs include interest payments and tax. Some examples of expenses included in a calculation of gross operating expenses include costs of goods sold, costs of raw materials, rent, housekeeping costs, food and beverage costs, and other overhead expenses — which other hotel KPIs such as GOPPAR do account for.
 GOP (Gross Operating Profit) Calculation
GOP is the net income for the hotel after deducting Operating Expenses
Formula: GOP is calculated by subtracting Gross Operating Expenses from Gross Operating Revenue. GOP = Hotel Revenue – Operating Expenses
Example: if Hotel revenue achieved was $10,000 and hotel operating expenses was S2000, your GOP would be $8000
$10,000 (revenue) – $2000 (Operating Expenses) = $8000 (GOP)

Gross Operating Profit per Available Room (GOPPAR) is a hotel KPI that helps hotels adjust revenue against the costs incurred in generating that revenue.
It is used in hotel revenue management to maximize a property’s profitability for available rooms during a given time period by factoring operational costs into its forecasting. Some examples of operation costs taken into account when calculating GOPPAR include energy consumption, housekeeping, Internet, laundry, and food and beverage. By factoring in these operational costs, GOPPAR provides a more complete picture of operating costs per room, allowing hotel operators to more accurately calculate overall profitability.
While GOPPAR and RevPAR (revenue per available room) are both measured using available rooms, but GOPPAR Unlike RevPAR, GOPPAR provides a bigger picture of a hotel’s financial success. Where RevPAR measures a hotel’s ability to fill available rooms at a profitable rate, GOPPAR focuses on the overall revenue trajectory of a property in relation to the number of available rooms.
Analyzing GOPPAR highlights how effectively we are converting revenues across all departments into profit. While we might outperform our competitors or market in the top-line indicators (occupancy, ADR, RevPAR), there could be areas in which we are operating with higher expenses that are pressuring our bottom line.
Overall, with a better grasp on how our revenue and expense balance compares, we can identify strengths, weaknesses and opportunities to make our hotels or particular departments more profitable.
GOPPAR (Gross Operating Profit per Available Room) Calculation
GOPPAR is calculated by dividing annual Gross Operating Profit (GOP) by the total number of rooms available per year. It also involves prior calculations, such as subtracting total operating costs from total revenue to get GOP and multiplying the number of rooms in the property by 365 (number of days in a year).

• Gross Operating Profit = Total Revenue – (total departmental expenses + total undistributed expenses)
• Total departmental expenses = Rooms Expense + Food and Beverage Expenses + Other Operated Department Expenses.
• Total undistributed expenses = Administrative & General + Information & Telecommunication Systems + Sales and Marketing + Utilities + Property Operations and Maintenance.

Formula: GOPPAR is calculated by dividing annual Gross Operating Profit (GOP) by the total number of rooms available per year.
GOPPAR = gross operating profit / Total number of Available Room
Example: first step calculates your hotel available rooms, i.e., a hotel of 100 rooms x 365 days in a year = 36500 available rooms in the year.
If a hotel annual revenue achieved, including room revenue, food and beverage etc = $10 million
If hotel operating costs and expenses including supplies and salaries etc = $2 million
GOP = $10 million (revenue) – $2 million (Operating Expenses) = $8 million (GOP)
GOPPAR = $8 million (GOP) / 36,500 (# of available rooms/year) = $219.18.

Gross Operating Revenue is a hotel’s total operating revenue. This includes all revenue from all outlets that relate to the hotel directly or indirectly.

Gross profit ratio is a profitability ratio used for comparing a hotel’s gross profits and its net sales revenue. In general, a higher ratio signals better profitability. The Gross Profit Ratio can be compared to last year’s ratio to determine hotel performance year-to-year. It is useful metric to help revenue managers understand how it can increase or decrease prices on a hotel’s products or services without incurring a loss. Gross Profit Ratio also gives revenue managers the benefit of making annual comparisons. An annual improvement in Gross Profit Ratio is a good indicator of a hotel’s financial improvement.
Gross Profit Ratio Calculation
Gross Profit Ratio is calculated by dividing gross profit by net sales. Some managers prefer this ratio expressed as a percentage; in which case the result of the above division is then multiplied by 100.
Formula: Gross Profit Ratio = gross hotel profit / net sales x100 Gross Profit
Example: Gross Profit = $2,300,000 Net Sales = $9,550,000 Gross Profit Ratio = ($2,300,000 (GP) / $9,550,000 (NS)) x 100 = 24.08%

Galileo GDS is a global distribution system based in Atlanta, Georgia, in the United States. It is owned by Travelport, forming one part of their collective offering, including the Apollo and Worldspan systems. Galileo can book hotel rooms, airline tickets, train tickets, cruises, and car rentals. GDS serving users in Canada, Europe, South America, Asia, and Africa.

Gross Booked Room Nights is the total number of room nights theoretically reserved through advanced bookings excluding waitlisted nights.

Gross Bookings is the total number of advanced reservations theoretically reserved through advanced bookings.

Gross Conversion Rate is a variable measurement of the ability to convert sales opportunities to reservations.

Gross Revenue per FTE is a macro measurement used to calculate the revenue produced per Full-Time Equivalent.  This measurement can be used on an hourly, daily, monthly, etc., basis depending on the availability of data.

Gross Room Nights per Booking is a macro measurement used to calculate the average number of room nights booked per reservation.

Gross Upsell Revenue is the total income generated through room upgrades. Keep in mind, the upsell revenue only shows the difference between an upgraded room rate and a base room rate available for a guest, per the dynamic upsell setup.

Gross Web Reservations is the total number of reservations created through Passkey booking websites, including cancelled and waitlisted ones.

The total number of room nights reserved through Passkey booking websites, including cancelled and waitlisted ones.

Gross Web Revenue is the total income from reservations created through Passkey booking websites, including cancelled and waitlisted ones.

The group business expected for an occupancy date, there are some factors might affect the group demand such as: .

• Vents in the area including concert dates, sports events and other events that generate demand for hotel rooms.
• Seasonality is also a factor with the summer months being busiest.
• Midweek is generally a quieter time for hotels unless they are a corporate hotel.
• Economic conditions including FX rates.
• Convention centre venues also help induce demand in cities.
• Tourism board activity such as advertising campaigns.
• An increase or decrease in the level of corporate clients

Group displacement analysis is a costs and profit analysis, measuring profitability with and without a proposed group, that can also be used to calculate the minimum acceptable rate (lose, walk away) and to measure the hotel inventory that will be unavailable to other segments (such as transient business) due to a group booking request.
Group bookings can help increase profits for hotels, but sometimes not !! as there might have been more profitability in refusing a group request
Before accepting or declining any group reservation, the following data must be considered when calculating the overall profitability, the revenue displacement calculations should include the following:

• Number of rooms requested by the group?
• Room type requested by the group i.e., suites or executive rooms
• How much revenue will also be generated from food and beverage and other services?
• Will the group need a meeting room (or maybe even more than one)?
• Length of stay for the group
• Length of stay impact on housekeeping costs
• Shoulder nights
• Food & beverage sales
• Commission
• Be aware of pickup trends

Group pricing evaluation is an excel sheet tool or a software that allows users to enter details about a potential group booking, generate an analysis, and use the resulting data to select the best arrival date and rate that will provide the highest benefit to the hotel.

Group rate is negotiated and discounted hotel rate offered for convention, trade show, meeting, tour or incentive group. The minimum number of rooms to receive those special rates are 10 rooms with a signed contract guaranteeing the hotel 10 rooms or more per night for an agreed upon date or dates.

Group wash is the difference between the contracted and blocked rooms for a group, it represents the number of rooms that the hotel DOES NOT believe the client will use.
Also known as “Wash,” which is the difference between the actualized group reservations with its final occupancy from a group and the maximum number of blocks booked as the value of the block pace or the pickup pace.

A guaranteed reservation is an agreement between the hotel and the guest that a room will be available, secured by supplying the hotel with a guarantee of payment such as cash prepayment, credit card, corporate account or contract regardless of what time the guest arrives. Guests who utilize this option authorize the hotel to charge the account associated with the reservation, even if the guest does not check in for the dates reserved, the hotel may charge the guest (usually one nights’ room and tax)

In short, a guaranteed reservation is an agreement between both parties that, no matter what circumstances occur and no matter what standing policies or usual limitations might apply, the guest will have a room and the hotel will receive payment.

Guest Account is the record of financial transactions between the guests and the hotel, it is created at the time of reservation or registration or check in to the hotel, the guest account includes al record of a guest’s charges and credits, which is maintained in the front office. Items may include: drinks at the bar, food purchases, movie rentals etc. The bill is maintained by the hotel front office until check-out. It is also referred to as a guest bill, guest folio, and/or guest statement.

Guest Amenities or hotel amenities are those additional items and services in a hotel room that can transform a guest’s stay from a pleasant rest to an outstanding experience. Amenities are things provided at no additional charge to make a guest’s stay more convenient and comfortable. Most hotels provide things like toiletries, hair dryers, shaving supplies, sewing kits, etc, also this term is used for the range of disposable items provided in guest room bathrooms, this includes: shampoo, conditioner, lotion, soap, toothpaste, toothbrush, shower caps, etc. The costs of these items are built into room rate.

A guest check is a detailed summary of all the menu items ordered by the customer at any of the hotel outlets i.e. restaurant, coffee shop …etc .  Guest Checks are always printed prior to settlement, guest checks are always printed prior to settlement they never include information on payment tendered but they always detail all the menu items ordered by the customer. Also referred to as a waiter’s check or restaurant check.

Guest History is a permanent record stores every reservation, folio, and transaction forever, limited only by available disk space maintained for each guest who has stayed at the hotel with a separate entry for each visit and details of pertinent preferences and can be used When a repeat guest makes a new reservation, the information from past reservations is displayed and can be automatically loaded into the new reservation.
Guest History is a valuable reference tool for reservations, marketing, and credit departments. Guest histories are now more readily available through the increased utilization of computers and technology.

Guest directories in hotels is a package of documents and listings of hotel features & services as well as useful information about the surrounding area used as an information folder or room folder, that is displayed in the hotel room and informs the guest about the hotel, its offers and its surroundings, with the digital tools that information can be displayed in a digital way like smart TV.

Guest Nights is the total nights reserved by guests for a given period. Also referred to as Properties Sold or Nights Sold. The is a cumulative tracking figure that can be calculated annually, quarterly, monthly, or by seasons or peak event times. Sharing guest nights with owners is a great data point for monthly reporting.

Half board is a meal package offered by hotels specially in resorts includes two meals. One of these meals is breakfast while the other is lunch or dinner. The decision between lunch or dinner would depend on the hotel policy or, sometimes, the guests’ preference. However, most hotels and resorts offer breakfast and dinner. The meals are usually served as buffets.

High (Peak) Season is a time lag between high & low seasons in the travel market, during which average room rates, optimum revenues and room/suite occupancy rates are generated.

A hotel management system is a set of hotel software solutions that streamline and keep operations flowing and manage all hotel operations seamlessly.

hotel is a managed building or establishment which provides guests with a place to stay overnight – on a short-term basis – in exchange for a paid basis. The rooms are provided with most modern facilities like, AC, bathrooms, TV, hairdryer, iron board, etc. Most of the hotels have provision for food & beverage all through the day but, some hotels may have it only for a specific period of the day. Besides these basic amenities, the hotels may also provide for a range of outdoor recreations. Includes motor hotel, resort hotel or resort, and commercial hotel.

Type of hotels may include:

• Hotels
• Boutique Hotels
• B&Bs
• Inns
• Guesthouses
• Resorts
• Hostels
• Motels
• Campings & Vacation Parks
• Aparthotels
• Hybrid Hotels

Hotels are classified according to the hotel size, location, target markets, levels of service, facilities provided, number of rooms, ownership and affiliation etc.
Besides these classifications hotels are often classified with the Star, Diamond or Crown system, depending on geographic location (In fact, most organisations that provide star ratings in each country are independent agencies and not government authorities.)
Classifications system help guests to get an overview of the hotel services, standard and facilities, Hotel categorization is based on a scale from 1-5 stars, one star being the most basic type of accommodation and five stars being the highest standard on the luxury end of the scale.  The classification system can be used for various hotel types including boutique hotels, resorts, B&Bs and aparthotels

The hospitality industry refers to various businesses and services linked to leisure and customer satisfaction. A defining aspect of the hospitality industry is that it focuses on ideas of luxury, pleasure, enjoyment, and experiences instead of catering to necessities and essentials.
Hospitality industry may include:

• Food & Beverage services (restaurants, cafés, bars, clubs etc.)
• Hotel / Lodging Industry (as mentioned above)
• Travel & Tourism (planes, ferries, cruise ships, trains, cabs, buses)
• Recreation / Entertainment (attractions parks, movie theatres, zoos, museums, sport events).

Hotel Market Intelligence is the gathering, analysis and dissemination of information relevant to hotel markets. This information’s purpose is to help you make effective decisions concerning the distribution of your hotel’s room nights. Is your hotel’s pricing competitive Is your hotel performing well across channels? How are you doing head-to-head versus your nearby competitors? Those information gives you insight about:

1. Getting an accurate market overview(with real-time changes)
2. Highlighting parity violations(on the channels you rely on most)
3. Knowing where you stand(among the competition)

The next sequential process step is information dissemination, where statistics and other relevant and useful info is distributed to various departments of a hotel, or even to several hotels that form part of a national or international chain.

Hotelligence reports is a very helpful tools for the revenue management that provide historical electronic booking data from the Global Distribution Systems (GDS), including information on business sources, rates and length-of-stay patterns, for both individual subscriber properties and their local competitive sets.
The report represents a partnership between TravelClick and three of the largest global distribution systems, Galileo, Sabre, and Worldspan. The information is an accurate consolidation of 100% of reservations made through these booking channels which represent 85% of all GDS activity for your hotel and competitive set.

Hotelligence Future Pace report is another helpful tool for the revenue management that provides a forward-looking snapshot competitive booking data from GDS channels of room nights, revenues, average daily rates and market penetrations for future dates within the current month and next two months. The report is a supplement to TravelClick’s popular Hotelligence report highlighting opportunities to increase market share and revenues. With FuturePACE hoteliers can see their position in the market in enough time to change the future.

IATA is the world trade association of airlines representing some 300 airlines or 83% of total air traffic which operates domestic and international services and acts as a supranational organization proposing rates, conditions or services, safety standards, etc.  IATA appoints retail travel agents for international ticketing through its IATAN subsidiary.

IATA supports many areas of aviation activity and helps formulate industry policy on critical aviation issues. It is the prime vehicle for inter-airline co-operation in promoting safe, reliable, secure and economical air services for the benefit of the world’s consumers. IATA aims to be the force for value creation and innovation driving a safe, secure and profitable air transport industry that sustainably connects and enriches the world. IATA’s mission is to represent, lead, and serve the airline industry.

IATAN is a department within IATA serving the US Travel and Tourism industry responsible about the issuer of the IATA/IATAN Card for travel agents in the United States. This card is an industry credential recognized worldwide as the mark of an agent who meets a set of standards valued by airlines, the travel agent community, and travel consumers, IATAN requires travel agents to meet some conditions to be eligible for this card such as Be an owner, employee, or independent contractor of an IATAN accredited location, be registered with IATAN, Be at least 18 years of age …etc.

Internet Booking Engine (IBE) is an online application or IBE is an online application or search engine on any travel website which allows to search or book any kind of travel services on the Internet such as hotels, vacation rental, flights and so on. Hotel rates and allocations are displayed in real time and allow to display an instant confirmation to the customer of the service or product booked. IBEs exist as standalone applications, e.g., to book only hotel rooms on a hoteliers’ Web site. In this instance, the IBE is in most cases directly connected to the hotel CRS or PMS (see also CRS and PMS). Other IBEs combine multiple services, e.g., hotels, flights and rental cars and may be integrated from a 3d party vendor into the Web site upon selecting any of the offered services, an IBE or Online Booking Engine (OBE) allows you to book that service using your preferred payment method. In the hotel or vacation rental industry, one could say that it is basically just an online shop for accommodations.

IDS is generally used to express the hotel sales over the Internet. It is also known as a synonym for distribution via 3rd party Web sites and ADS and refer to internet portals that offer hotel reservations. It is a collection of internet reservation systems, travel websites and portals that concentrate on online marketing of travel, hotel and related services directly to users.
The technology provided with an IDS allows travellers to build whole packages and trips, combining flights, hotels, transportation and more that help facilitate transactions through a GDS which passes on hotel inventory and rates to travel agents and travel sites that request it and also accepts reservations

Incidental Charges is the cost or the extra charges of hotel amenities and services that are not included in room rates or the room package and taxes such as: phone calls, food, drinks, movies, restaurant and bar charges. Room service etc.
Usually, hotels hold certain amount of money either cash or by credit card upon the guest check-in to cover potential Food & Beverage charges to the room, phone calls, parking, movies, etc. if nothing is charge to the room, the hold will be release upon check out.

An index measures a hotel’s performance relative to an aggregated grouping of hotels competitive set, indexes to measure performance in three key areas: Occupancy index = MPI, ADR index = ARI and RevPAR index = RGI .
An index of 100 means a hotel is capturing a fair share compared to the aggregated group of hotels. An index greater than 100 represents more than a fair share of the aggregated group’s performance. Conversely, an index below 100 reflects less than a fair share of the aggregated group’s performance.

Interface is the direct communication/ connection between two (or more) networks/ applications/ systems that can be interlinked together without any intermediary such as a connection between a PMS/ CRS and an OTA.
Some key interfaces for PMS include:

• Booking Engines enabling seamless, two-way connections to the world’s leading booking engines. This helps hoteliers manage inventory and gain visibility.
• Easy Inventory Management Channel Manager, to optimize online exposure and easily and efficiently manage inventory.
• Link to major CRS (Central Reservation System) connections. This enables the PMS to receive reservations from leading booking engines.

• Connectivity to sales and catering systems for full-service hotels to the cloud-based PMS to keep better track of group spend.

Inventory when it relative to hotel distribution it is the number of rooms available for a hotel to sell or distribution across all channels.

Itinerary is the travel schedule or route of a journey for a customer or tour or the proposed outline provided by a travel agent which details hotel names, flight numbers, departure times, etc.

Key Performance Indicator is a set or ratios and formulas that help measure , calculate and evaluate the success of a hotel performance and progress of a hotel accordingly to their plans and actions for a particular area of hotel operations – or the property as a whole. They ensure clear visibility on the functionality and sustainability of hotel business within the hospitality landscape.

KPIs allow hotels to analyze and develop significant improvements that will help to boost hotel’s performance, A KPI often demonstrates how the targets are achieved using data and calculations that guide owners and managers to know how their business is performing. for example: Average Daily Rate (ADR), Revenue per Available Room (RevPAR), Gross Operating Profit Per Available Room (GOPPAR), Occupancy rate, Profits per Available Space Time (ProPAST), Profits per Occupied Space Time (ProPOST) and Function Space Utilization Percentage.

located Negotiated Rate (LNR)  is an agreement between a hotel with a corporate group or organization that is interested in more competitive rates for rooms, meeting and event spaces over a period of time. The negotiated rate is typically made flexible between companies and organizations with no fixed permanent rate. These local negotiated rates are commonly not offered to the public (ie: transient business) who are booking vacations or regular hotel stays. LNR contracts offer a lower-than-average rate to motivate companies and organizations to continuously stay at a particular hotel, year after year.

Length of stay (LOS) is the number of nights a guest stays at a hotel during one stay. This value is also the difference between the departure date and the arrival date from the hotel.
Length of stay usually fluctuates between weekends and weekdays, around holidays, also, there are seasonal patterns, revenue management team forecast sales and expected revenue based on the length of stay calculation guides

Last room availability (LRA) is a pre-negotiated corporate contract between a business company and a hotel at the room rate level (for example, if the specific room type is no longer available, then the negotiated rate will not be available either). In other meaning LRA is all rooms in the category for which a client rate has been negotiated and agreed should be made available to the client at that agreed rate up to and including the last room in that category, usually used in conjunction with negotiated or consortia rates.  It allows agents to book the last room a hotel has available at the contracted rate. With this clause, a company is entitled to book a hotel’s last vacant room at the previously contracted rate even if the rest of the hotel’s rooms are otherwise booked (as long as it is the negotiated room type).

Last Room Value is the maximum amount of room revenue a hotel can expect to make from the last room available for sale, LRV used to avoid selling the last room below a certain rate – as when market demand is high, the last room may be sold at a higher rate than normal to control prices and inventory efficiently while making a profit.
A revenue management system uses the Last Room Value as a restriction control for low value rates, during busy periods. While it opens all rates during slow times.

Last Year refers to the year prior to the current operating year

last Year Month to Date refers to the year prior to the current operating month.

Last Year on The Books refers to business booked with a hotel for the previous year, before applied forecasts and wash factors. Generally referred to all deducted business.

Last Year Same Date refers to the exact same date as today, but 1 year prior

Last Year to Date refers to the period up until today, but for the previous year

A limited-service hotel is a brand hotel with franchise memberships of recognized hotels refers to budget-friendly accommodations that sometimes don’t have a food and beverage component like an onsite restaurant. These hotels may have typical amenities like a conference room, business center, gym, pool, and laundry facilities. These hotels are located near business areas such as industrial parks, cities, and airport terminals and typically located closer to other restaurants and grocery stores and have communal kitchens or outdoor BBQ areas where guests can cook their own food. You’ll recognize these hotels as they often sit in a cluster. Some popular brands are Holiday Inn, Comfort Inn, Radisson, Hampton Inn, and La Quinta Inn.

Low season is the time of year when a place receives the fewest visitors, and fares and holiday accommodation are often cheaper.” Low season is characterized by the consecutive months during which lowest room/suite occupancy, revenues and average room rates are generated due to low occupancy rates and lower prices for hotel rooms. Revenue management team should set high goals for the low season either having or not a budget.

Lose-it-Rate is the minimum price below which a group booking should no longer be accepted for certain rooms and dates, where sometimes it is an unprofitable rate at which the hotel would be better off leaving a room unsold than selling at this rate.

Modified American Plan (MAP) means the quoted room rates include two meals a day, namely breakfast and either lunch or dinner. In Europe and some other countries, the Modified American Plan is also referred to as Half Pension or Half Board Plan.
Modified American Plan is a slightly altered version of the American Plan, and includes a room stay with breakfast and a choice between lunch and dinner. Some hotels may have a fixed lunch or dinner policy where guest cannot switch between the two, but generally it is for the convenience and cost benefit of those guests who are expected to be away (for work etc.) during noon or evening hours.
The tourists mostly prefer this plan, as it is comparatively more flexible. It is offered in most of the good hotels and is normally by arrangement. It includes hotel accommodation, breakfast and either lunch or dinner in the price of the room. Thus, in this type of accommodation bed and breakfast and along with it one principal meal, lunch, or dinner at the discretion of the guest is also included. It generally includes continental breakfast and either ‘table d’hôte lunch or dinner in the room rates.

The Minimum Acceptable Rate (MAR) is a method that calculates the minimum acceptable hotel group room rate based on total transient and total group revenue contributions, where the lowest acceptable rate the hotel will accept from a group, determined by a displacement analysis. The displacement analysis is a series of formulas used to analyze the total value lost by guaranteeing rooms to a group that might otherwise be booked by transient business.

Minimum Length of Stay (MinLOS)  is a room inventory control or a restriction function that limits the number of nights a reservation can stay when arriving on a certain date hotel put in place that requires a reservation to meet or exceed a certain length of stay in order to complete the reservation, this happened when hotels want to require a guest to stay a specific number of nights. For example, a hotel will require a 2 Night MLOS on a Friday night over a busy weekend to ensure that guests are staying both Friday and Saturday. They will do this for operational purposes as well as to make sure that their occupancies over busy times are even.
Those kinds of restrictions set by the revenue management team to helps hotels maximize profits and occupancy during the low-demand periods either side of a high-demand period by ensuring that peak demand nights aren’t filled with one-night stays.

Maximum Length of Stay (MaxLOS) is a room inventory control or a restriction function that limits the number of nights a reservation can stay when arriving on a certain date hotel put in place that requires a reservation to meet or exceed a certain length of stay in order to complete the reservation, this happened when hotels want to require a guest to stay a specific number of nights. For example, a hotel will require a 2 Night MLOS on a Friday night over a busy weekend to ensure that guests are staying both Friday and Saturday. They will do this for operational purposes as well as to make sure that their occupancies over busy times are even.
Those kinds of restrictions set by the revenue management team when they anticipate more room sales at higher rates. Also, during periods of peak demand and especially when discounts are offered to guests, the Max LOS is used to helps hotels maximize profits and occupancy during high-demand period by ensuring that peak demand nights aren’t filled with one-night stays.

Market segmentation (MS)  is a way of grouping your hotel guests into several segments based on a set of shared characteristics. The purpose of using hotel market segmentation lies in catering to each guest’s needs better and maximising revenue through personalised experiences and combination of unique purchasing (e.g., advance purchase vs. walk-in) and usage patterns (e.g., single night vs. weekly).
Regardless of the type of hotel, guests are placed into market segments based on behavioural patterns and price sensitivity.
Market Segmentation is used for more accurately creating marketing campaigns and materials for different customer demographics. It allows revenue managers to create offers that are more accurately matched to the needs and budgets of varying consumer groups. Market segmentation is also used to identify individual bookings from group bookings
Market Segmentation is very important to understanding booking trends for hotels. Some examples of factors used in market segmentation include length of stay, no show ratio, booking lead time, booking value, cancellation rate, seasonality, and specific days of the week of stays. The most common categories for market segmentation are price, product, and distribution channel.
There are three primary hotel market segments: transient, corporate, and group travel. Each of the three major segments can be broken down into smaller, more specific market segments that further detail customer travel patterns. Some of the typical customer segmentations are:

• Transient – the transient segment comprises people who travel individually and do not belong to any group or company. They make bookings based on their own choices, aiming to catch the best available rates (BAR).
• Corporate Negotiated Rates (CNRs) – this segment refers to companies or corporates that house their employees in the hotel. Companies usually get discounted rates and other perks at the hotel.
• Local Negotiated Rates (LNRs) – this segment involves local businesses hotel general managers and revenue managers have agreements with
• Group – As per its name, this segment refers to a group of people who have travelled together to the hotel. Many hoteliers often give groups reduced rates
• Wholesale – The wholesale segment includes booking agents and tour operators. They usually make bookings in bulk at discounted rates.
• Other – This segment usually includes complimentary rates, industry rates, rates available to the staff and walk-in guests or guests staying through bartering (e.g., influencers).

Manager on Duty (MOD ) is the manager in charge of the hotel operations and/or guest relations in a particular shift i.e., night shift or afternoon shift.

Market Penetration Index (MPI) Also referred to as an Occupancy Index is a competitive metric developed by the Smith Travel Accommodations Report also known as the “STAR Report” to compares hotel’s occupancy percentage to the average occupancy percentage of hotel competitors during a specific given time i.e., day, week, month or year, also to determine whether the hotel is achieving its fair share of occupancy as compared to a specific group of hotels competitive set. This metric is useful in assessing how attractive of an offering your hotel is bringing to the market by calculating the percentage of p the ratio between the Total Rooms Occupied in a hotel against the Total Rooms Occupied by the comp set “collectively attributed to the hotel’s Market Set.
MPI (Market Penetration Index) Calculation
MPI is calculated by dividing a hotel’s occupancy rate percentage by the average market occupancy percentage during a specific given period. Many revenue managers then multiply the resulting number by 100 to obtain a whole number percentage. An MPI of 100% means that a hotel is receiving an appropriate (or full) market share of bookings. And while an MPI below 100 means that a hotel is receiving less than its expected market share, an MPI above 100 signals that a hotel is receiving more than its expected market share (based on the competitive set the hotel is comparing itself against).
Formula: MPI = Hotel Occupancy % ÷ Market Occupancy %) x 100
Example: If Hotel Occupancy % = 66% and Market Occupancy % = 74% MPI = 89%
66% (Hotel Occupancy) ÷ 74% (Market Occupancy) = 89% (MPI)

Month to Date (MTD) is a time frame starting at the beginning of the current month and ending at the current date very useful in reporting interim monthly performance i.e. ADR, Occ. Or revenue.

Market Share is the actual percentage of the room nights sold or revenue captured during a particular timeframe compared to the overall competitive market, for example: Easter, Christmas, the summer season, or the peak skiing season, e.g. divided by the total room nights or revenue sold within the competitive set (inclusive of the subject hotel), It is calculated by taking your hotel room nights sold and dividing that by the total market room nights sold noting high market share means the hotel has more control over Rates.

Mark-up is the difference between the hotel’s selling and the merchant’s price offered to the consumer, it could be calculated on percentage or amount. It is also used to refer to the amount an any third party that sell the hotel services such as travel agents, tour operator, or OTA, those third parties increase hotel net room rate, to set the sell rate.
Some of them work with a merchant model work with hotels on the basis of Net Rate. This means a hotel gives a rate, and they will mark it up (increase) to set a sell rate. For instance, the hotel gives the OTA a rate of US$100, and the OTA marks it up with US$25, to sell at US$125. In this case the mark-up % is 25%.

Merchandising is the processing of arranging the right products at the right price presented where the consumer is buying. It involves promoting your hotel in all channels where consumers shop, presenting graphical and informative information, and packaging your hotel and its amenities to satisfy a unique guest experience.

Merchant Model is a 3rd party Web sites, such as Expedia, offer so called merchant contracts where usually the hotel obtains a preference rank in the result displayed on the Web site through special rate and allocation agreements. Thus, the hotels provide net rates and merchants add a mark-up.

A metasearch engine is searching engine that queries other search engines and then combines the results that are received from all. In effect, the user is not using just one search engine but a combination of many search engines at once to optimize Web searching.
A metasearch engine is a type of search engine or tool that aggregates and collects all rates and inventory available for your hotel online, through multiple online channels, other websites and other several sources and presents the result  as a list to the guests in one place . They include your own website’s rates. This creates a faster and easier process for guests to find and compare hotel prices and ultimately make their booking decision. Examples include Google Hotel Ads, TripAdvisor, HotelsCombined, Trivago, Skyscanner, Kayak, and WeGo.

A meta-search travel engine is specialized in travel content and filters e.g. flight and hotel availability according to search criteria defined by the user. It compiles rates from multiple 3rd party Web sites and displays the result on one single site. The user is transferred to the selected 3d party site for booking the service/price she/he has selected on the result site.
A travel metasearch engine is a price comparison website that compares hotel rates from different sources across the internet, OTAs (online travel agents) or directly from hotels. It must be noted that these metasearch engines are not a booking channel. They are merely a platform through which booking channels can market themselves. The business model of travel metasearch engines is similar to most digital advertising platforms. They earn money through CPC (cost per click), CPI (cost per impression), CPA (cost per acquisition) and hybrid ads (a combination of CPC and CPA).

The minibar / mini fridge is a small refrigerator   filled with drinks and snacks located in guest rooms containing a variety of beverages and snacks, this amenity serves as a more credible and profitable substitute for room service.
As a rule, for the mini bar, there are alcoholic and non-alcoholic drinks in small bottles. Cookies, chocolate, sweets, snacks and other small snacks are also placed in the minibar. The filling of the minibar depends on the category of hotel and rooms. Guests at the best 5-star hotels will receive local fruits or a selection of sweets as a compliment. In most cases, using the minibar is a paid service. Hotel staffs usually leave the price list directly on the minibar. In some hotels, the basic set (bottled sparkling and still water, chocolate and chips) is provided free of charge.

MICE is an acronym that stands for Meetings, Incentives, Conference & Exhibitions, which  used in sales & catering and function space. MICE is an important source of business for many hotels, as it refers to a group of tourism that plans, books and organises conferences, seminars and other events.
The MICE industry is one of the most profitable sectors, as MICE guests spend large amount of their budget on-site. MICE groups use the hotels banquet facilities the most, making them highly important for many hotels.

Meetings refers to any kind of occasion that typically held in hotel conference rooms or at convention centers. They are single-day or multiple day’s events that bring together a group of people to address a key challenge or set goals often for business.
Incentives: Incentives are travel rewards a company may provide in return for excellent professional performance from individual employees, groups or partners exceeding on goals set, they are therefore rewarded with a stay at a hotel to incentivize further work A few days in a resort, hotel or popular hospitality venue at the company’s expense does wonders for employee loyalty.
Conferences: Conferences are similar to meetings but it takes meetings to the next level and often are spread over multiple days and are designed for a large corporate group to share knowledge across several days. They often include not only key members of the organization, but also guest speakers and the general public.
Exhibitions: Exhibitions are essentially any planned public or social occasion or trade shows where an organization promotes its key products and services to the public. They are hyper-focused events that drum up business and help employees to network and build lasting professional relationships. Examples of such are range from Weddings, Company Parties, Graduation Celebrations etc.

A motel is a small hotel on a major highway that offers ample parking area and hotel services for long-distance travellers. Motels may have a one or two-floor layout. This makes it easier for customers to access its rooms from the car park. Motels offer short-term accommodation to travellers, hence fewer services. They are primarily ideal for anyone looking for one- or two-days’ accommodation while on transit to another destination.

Next Generation Seamless (NGS) is a hotel reservation systems technology or an interface or connection that integrates data sharing across the web between the hotel CRS and/or PMS information directly into the four major GDS channels, Meaning the user (travel agent) can recall hotel data (rates and availability) in real time which is identical to the hotel’s own data thus avoiding delays and errors and providing real time information to the travel agents exactly matching the information in the hotel’s own systems. That way the information is submitted quickly, without delays and errors, resulting an increased confidence and usability by agents.

Non-last room availability (NLRA) is an agreement between a hotel and a client whereby the negotiated rate is only made available to travellers at the discretion of the hotel. Even if rooms are available in the category for which a negotiated rate has been agreed, the hotel can choose not to honour that rate for that booking and to charge a higher rate or offer a higher room type such as suites to maximize revenue.
Essentially NLRA is the same concept of last room availability with one extra caveat, where the agreed-upon rate falls to the hotel’s discretion, meaning they can make the rate unavailable based on hotel availability.

Net Revenue Per Available Room (NRevPAR) is a comparison metric similar to RevPAR, but whereas RevPAR looks only at a property’s room revenue, NRevPAR takes into account all net revenues for a hotel or property. Looking at net revenue, moreover, means that NRevPAR also takes costs into account, such as travel agency commissions, transaction fees, and distribution and operating costs.
NRevPAR offers more transparency into hotel performance than other KPIs because it accounts for net revenues, rather than looking only at revenue as a percentage of sales (such as with RevPAR)., where NRevPAR allows revenue managers to make more accurate comparisons of past revenue management strategies by allowing for “apples to apples” comparisons by accounting for fluctuating costs that RevPAR does not and better analyze the hotel ability to generate revenue through room sales, and the costs that those rooms incur. At the same time, it also accounts for the number of rooms actually available, and the distribution costs associated with those rooms.
NRevPAR (Net Revenue Per Available Room) Calculation
The Net Revenue Per Available Room calculated by first subtracting direct customer acquisition costs such as distribution costs, commissions, transaction fees and loyalty expenses from room revenue then the resulting number is then divided by the total number of available rooms to achieve the final result.
Formula: NRevPAR = (Room Revenue – Distribution Costs) ÷ Available Rooms
Example: Hotel Room Revenue = $2,250,000, hotel Distribution Costs = $1,350,000, hotel Available Rooms = 300, your Net Revenue Per Available Room would be $3,000
NRevPAR = ($2,250,000 (Room Revenue) – $1,350,000 (Distribution Costs)) / 300 (Available Rooms) = $3,000

Negotiated rate is a commercial rate that has been offered to a corporate company, travel agency or a consortium of travel agencies to be used for any of heir clients in return for volume business.  These are sometimes called Preferred Rates which is suitable for large-budget corporates who value rate certainty. Negotiated rate are typically for certain room classes, e.g. a standard room with LRA, or inclusive of specific extras such as Wi-Fi or parking.

Net Non-Commissionable is a special rate that have no commissions attached to them offered by hotels to travel agents or wholesaler, that does not allow a commission to be paid to them.

Net Profit Ratio is a profitability ratio used by hotels to understand profitability after certain costs. It is a KPI that removes taxes to provide a more accurate picture of the relationship between net profits and net sales. A higher net profit ratio signals a more efficient hotel management. A lower ratio means that hotels should look for opportunities to improve hotel efficiency. Net Profit Ratio is often reported on a trend line so that hotels can compare a hotel’s performance over time.
The main benefit of using Net Profit Ratio as a KPI is that it reveals the amount of remaining profit after factoring in operational costs such as production, administration, financing, and income taxes. In conjunction with an analysis of how a hotel is efficiently utilizing its working capital, Net Profit Ratio is one of the most useful KPIs for revenue managers to evaluate a hotel’s overall performance.
(Net Profit Ratio) Calculation
The Net Profit Ratio is calculated by dividing net profit after tax by net sales. The final ratio is expressed as a percentage by multiplying the result by 100.
Formula: Net Profit Ratio = (Net hotel Profit After Tax ÷ Hotel Net Sales) x 100
Example: Hotel Net Profit After Tax $4,350,000 and hotel Net Sales = $46,750,000, your Net Profit Ratio would be 9.31%
$4,350,000 (Net Profit) ÷ $46,750,000 (Net Sales) x 100 = 9.31 % (Net Profit Ratio)

Net Rate is the price or the sell rate of a room or function space minus / not including the travel agent commission, for a booking facilitated by a distribution partner, such as an OTA or travel agent. transaction costs or before being marked up by third party.
Revenue management team, can calculate a Net Rate when subtracting the commission from a gross or sell rate to determine the real revenue contribution distribution channels. For instance, if the rate paid was $100 (excl VAT) and the commission is 25%, the Net Rate would be $75. And with a commission of 15% the Net Rate would be $85.

No Show is a case where some customers with a reservation at a restaurant, hotel, etc. who fails to show up to use the room(s) reserved for them at the time of check-in without explicit cancellation and no explanatory contact or having warned or modified his reservation.
No show is usually determined somewhere between midnight and 2 AM for all the rooms that have not received checked-ins. These guests receive a no-show update and their bookings get cancelled. This of course does not apply if the guest pre-booked the room for early arrival and notified the hotel. This is only for guests who did not turn up until 2 AM, before the night audit was processed, where a No-Show fee is charged (generally to the value of the first night of the reservation including taxes but no meals if it is attached to the room booking), it is usually because the person who made the initial booking failed to notify the hotel of their cancellation in enough time prior to the agreed date.
Hence and based on the booking terms and conditions stipulated with the customer, can apply a penalty by credit card (the application and the manner of the penalty are obviously at the discretion of the hotel).

Online Booking Engine (OBE) is a hotel booking engine is an online application on hotel websites and social media pages that provides supplier availability of hotel rates, descriptions and reservations to the end user to capture and process direct online reservations, and to optimize hotel sales strategy and maximize profit.
An OBE displays rates and allocations in real time and shows the customer an immediate confirmation of the product / service booked. The engine shows its maximum potential if used together with a CRS / PMS or a GDS. It serves as an interface.
Online booking engines can combine multiple services (like hotels, flights, rental cars etc.) and may be integrated from a 3rd party vendor (like Expedia, Bookings.com etc.) into the website. They can also be a standalone application (booking possibility on a hoteliers’ website), in which case, it is mostly directly connected to the hotels system (CRS / PMS).
The main advantage of a booking engine is that it provides an easy access to payment processes and purchase systems. The guest can finalize a booking easily, without any help or need of a travel agent or a hotel.

Hotel occupancy (OCC) is the number of occupied rooms at any given time compared to the total number of available rooms at a given time. It can be examined by day, week, month or yearly, hence Occupancy is a hotel KPI that determine a hotel’s performance that measures the number of rooms occupied in a hotel, and compares that to the total number of rooms available on the property. It is displayed as a percentage. Occupancy highlights how much of the available space in a hotel is actually being utilized by guests. It gives a broad overview of how a hotel is performing and allows revenue management team to place other key hotel KPIs in appropriate context.
By tracking occupancy rate, hotels can more accurately determine the Average Daily Rate of rooms, forecast future trends for low and peak seasons, and apply other revenue management practices such as comparing occupancy rate with average daily rate and costs of room operations allows revenue managers to make decisions that increase a hotel’s overall profitability.
It is important and highly recommended for hotels to keep track of this data on a daily basis to identify the average daily rate, forecast and apply revenue management strategy.
Occ.  (Occupancy / Occupancy Rate) Calculation
Occupancy rate is calculated by dividing the number of rooms sold by the number of rooms available. As a KPI, it can be calculated for any given period revenue managers are interested in, such as weekly, monthly, and annually. The final ratio is expressed as a percentage by multiplying the result by 100.
Formula: Hotel Occ % = (Total Hotel Sold rooms ÷ Total Hotel Rooms Available) x 100
Example: Total Number of hotel Rooms Sold = 180 and Total Number of Rooms Available = 300, your occupancy rate would be 60%
180 ((# of Rooms Sold) ÷ 300 (# of Rooms Available) = 0.6x 100 = 60 % (Occupancy Rate)

OCC Occupancy (Penetration) Index is the same as MPI (market Penetration Index ) an index measurement determines a hotel’s market share performance relative to an aggregated grouping of hotels, competitive set or market.
designed for hotel’s share of their comp set. For example, if the hotel comp set has 5 hotels and the total rooms available is 1,000 rooms in the competitive set and the subject hotel has 100 rooms, the subject hotel’s fair share is 10.00 percent. If the subject hotel accounts for 10.00 percent of the room nights generated within the competitive set-in a given time period, the subject hotel’s actual share equals its fair share, giving it an occupancy index of 100 percent.
OCC / Occupancy (Penetration) Index Calculation
OCC / Occupancy (Penetration) Index is calculated by dividing a hotel’s occupancy rate percentage by its competitive set occupancy or  the average market occupancy percentage during a specific given period. Many revenue managers then multiply the resulting number by 100 to obtain a whole number percentage. An MPI of 100% means that a hotel is receiving an appropriate (or full) market share of bookings. And while an MPI below 100 means that a hotel is receiving less than its expected market share, an MPI above 100 signals that a hotel is receiving more than its expected market share (based on the competitive set the hotel is comparing itself against).
Formula: OCC / Occupancy (Penetration) Index = Hotel Occupancy % ÷ Market Occupancy %) x 100
Example: If Hotel Occupancy % = 66% and Market Occupancy % = 74% OCC / Occupancy (Penetration) Index = 89%
66% (Hotel Occupancy) ÷ 74% (Market Occupancy) = 89% (OCC / Occupancy (Penetration) Index)

Online Distribution Database (ODD) is a content database service offered by Pegasus. It is the former term for Hotel Content Database (HCD) It holds text, images, geocodes, contact information, etc. from hotels in up to 16 languages. The ODD service can be booked/purchased as a stand-alone application. However, it is most commonly used together with the Pegus Ultradirect switch, which delivers rates and availability for hotel rooms. The ODD is typically used in form of regular downloads and its content is integrated into the Web site of the affiliate in a customized way with the main purpose to enhance the content of the hotel offered on the 3rd party Web site.

An online travel agency (OTA) is a web-based marketplace that arranges and sells accommodations, tours, transportation and trips on an online platform for travelers. It enables customers to make hotel and travel reservations from one single platform. They’re the digital equivalent of a travel agent. They are third parties who sell services on behalf of hotels.
Usually, these OTAs offer many benefits with added convenience with more of a self-service approach. They also include a built-in booking system which allows instant bookings in exchange for a commission paid by the hotels.
Online travel agencies make reaching potential guests easier than traditional hotel marketing and provide insight into the market and tools to help hotels to get more bookings. These platforms also help to enable secure bookings, manage reviews, and communicate directly with guests.
An OTA signs up hundreds or thousands of hotels, vacation rentals, and vacation homes for users to book on its website. The Online Travel Agency takes care of the marketing, the booking process, the payment processing and, if necessary, supports the smooth processing on site. Similar to a classic travel agency, OTAs source most of their inventory and rates either directly from end suppliers/hotels (via APIs or an extranet) or through such middlemen as GDSs, air consolidators, bed banks, hospitality marketplaces, other OTAs, channel managers, etc. (typically, via API integration).
On the customer side, OTAs have an online search and booking interface for travelers to make reservations and often a set of APIs for efficient B2B connection with distributors.  Examples of online travel agencies include Expedia, Booking.com, and Agoda. Some OTAs—such as Kiwi.com—specialize in one single service. Others—like Skyscanner—do it all.

On the Books (OTB) or business on the books (BOTB) is reservations and overnight stays already booked for advance dates, it is one of the most commonly used acronyms in hotel revenue management. Hoteliers use it when looking ahead to see how many rooms are booked at which rates for a given period. In short, it shows the current confirmed occupancy and revenue for the future, this information can be found in hotel Property Management System (PMS), where you can run a report that show that August has a total of 300 room nights and $75,000 in room revenue OTB.

On the Books last month (OTBLM) or business on the books last month (BOTBLM) is reservations and overnight stays already booked for previous month. Hoteliers use it when looking ahead to see how many rooms are booked at which rates for a given period and compare the same with the previous month.

On the Books last year (OTBLY) or business on the books last year (BOTBLY) is reservations and overnight stays already booked for previous year. Hoteliers use it when looking ahead to see how many rooms are booked at which rates for a given period and compare the same with the previous year.

Occupancy Forecast is a written/reported comprehensive revenue management tool estimate  the number of rooms which will be sold/occupied on an identified day and/or for a specified period of time to help predict future performance. Thus, it’s the perfect way to prepare for uncertainty, utilize performance data, consider industry trends, and make education predictions about occupancy. Examples would be a daily occupancy forecast, a monthly occupancy forecast, quarterly, and even a full annual occupancy forecast. This value may be expressed either as a specific number of rooms or as a percentage of available rooms. In other words, the occupancy percentage that the hotel predicts will eventuate.
Occupancy forecasting enables managers to plan the number of staff on-shift and understand what tasks are required in order to keep the hotel running efficiently and profitably. It also helps hotels predict times throughout the year that will bring them higher or lower than normal demand, occupancy, and revenue.

A One Star Hotel is a hotel that only provides the bare necessities for a night’s stay, such as a bed and a bathroom, the single-star rating is just an indication of their basic accommodations and does not reflect cleanliness or safety. Most one-star hotels are situated close to restaurants and fast-food locations, but will not have food options available on-site beyond a vending machine. Reception desk hours will also be limited and housekeeping services are generally only performed between guests.

Onward distribution is the conveyance of hotel content such as rates, inventory, and content to various distributors channels through the GDS or through the Internet via switching mechanisms.

Opaque is a booking channel where the property name remains hidden until after the purchase is complete. Opaque is the opposite of transparent. In transparent pricing, the customer sees the brand or product he is buying. In opaque pricing, the customer does not see this branding and hotel’s branding remains hidden throughout the entire booking process until the reservation is made.
Opaque pricing is useful to a hotel because the hotel can offer considerable discounts to prospective guests without affecting the hotel’s published price position, also helps hotels to sell empty rooms without damaging their brand integrity and price positioning. It allows the hotel to reach out to a price conscious audience in addition to their usual target group. An advantage is the guaranteed revenue the hotel has, as the reservation can’t be modified after purchase.
Opaque pricing is a good strategy to use if the hotel wants to reach more price-conscious customers who are less interested in the specifics of the booking and more concerned about the cost. Websites such as Hotwire are a classic example where price is the first thing that is sold, and the hotel comes second.
The best-known Opaque Travel Websites are Priceline and Hotwire although many OTAs have also introduced their own version of Opaque Pricing i.e. Travelocity / Lastminute – Top Secret Hotels, Getaroom.com – Unpublished Rates, Booking.com – Hidden Hotel, GTAHotels.com – Mystery Hotel, Hotel.de – Hotel Roulette ….etc.

Opaque rate or pricing is A non-transparent value offer, or pricing opacity, basically means that you can’t see the brand of the product type you are buying. It allows hotels to offer discounts, varying with great range from their public prices, without affecting their price positioning.
Opaque Rates most commonly seen in the hotel/travel industry, where travel inventory (hotel rooms, airline tickets, etc.) is sold at discounted prices while hiding the supplier’s identity until the completion of the purchase. Opaque pricing is a useful pricing technique for hotels looking to dispose of unsold inventory without resorting to clearance sales or cannibalizing their existing pricing position. these are hidden hotel bedroom rates that are bundled and sold as part of a package, i.e. customer books hotel, flights and car hire combined.

Operating Profit Ratio is a hotel KPI that measures the relationship between operating profit earned and the net revenue generated by a property which is also labelled net sales. Net sales should include both cash and credit sales. Operating profit should be accounted for before interest and taxes. The ratio is a profitability ratio that is expressed as a percentage of sales, hence operating Profit Ratio is used to evaluate the efficiency of a hotel in managing the costs and expenses associated with business operations.it is also used as analysis tools between two different accounting periods on how a hotel’s operational efficiency has improved or deteriorated to shows how much profit a property makes after paying all variable operating and production costs.
Operating Profit Ratio Calculation
Operating Profit Ratio is calculated by dividing operating profit by revenue from operations (net sales). The result is then multiplied by 100 to be expressed as a whole number percentage. Operating Profit includes gross profit and other operating income minus other operating expenses. It can also be calculated by adding net profit before taxes and non-operating expenses minus non-operating incomes. Revenue from operations, or net sales, should include cash and credit sales minus sales returns.
Formula: Operating Profit Ratio = (Operating Profit ÷ Revenue from operations) x 100
Example: Total hotel Operating Profit = $1,000,000 and Total Revenue from operations (net sales) = $5,000,000, your Operating Profit Ratio would be 20%.
$1,000,000 hotel Operating Profit) ÷ $5,000,000 Hotel Revenue from operations (net sales)) = 0.20 x 100 = 20 % (Operating Profit)

Open pricing is a revenue management strategy that gives the ability to price each of the hotel room types, channels and dates independently of each other rather than relative to each other to maximize revenue without having to make rooms unavailable for sale in other channels, such as OTAs, where the adjusted room rates should be based on demand and factors that influence it such as the day of the week, seasonality, and competitor pricing.
Open pricing is a dynamic tool used by revenue management team Instead of basing room rates on a specific amount, rooms can be priced based on demand. As with BAR strategies and discounted rates, many hotels use a strategy of pricing rooms relative to the rate for a basic room type. Thus, a suite might always be priced at the rate for a basic room plus a certain amount. Instead, it might be more useful to price the different room types independently to capture more revenue from travellers who will value the amenities of a suite more highly.

Operational Forecast is the hotel management tools using the occupancy forecast data to anticipate staffing levels in all areas of the hotel business (reception, housekeeping, restaurant, etc.)
The Operational Forecast method focuses on operations areas across the hotel such as hotel staff allocation per department and with seasonal peaks and troughs taken into consideration i.e., Reception, with peak times front of mind, Restaurants and banquet operation, including the number of covers for breakfast, lunch and dinner, and average spend per cover. It also scrutinizes the purchasing obligations for both perishable and non-perishable restaurant produce, products, and equipment.

Optimization or revenue optimisation means setting the best possible price for your hotel rooms based on the information available. It means determining not just a good price, but the best price. Also, it is the use of forecast, inventory, rate, configuration, and user interaction to calculate the best pricing and inventory control decisions that maximizes quality revenues for a hotel. Optimal pricing, LRV, forecasts and overbooking are the end result of the optimization process.

Overbooking is a practice of selling more rooms or confirming reservations beyond the hotel capacity than there are available for a given night. This practice has originated with the airlines and not is common in the hotel business as well. Many hotels do this deliberately to offset last-minute cancellations or no-shows and avoid losing revenue and occupancy, sometimes for some hotels overbooking is necessary and a kind of revenue management strategy to achieve a perfect or a near perfect sell-out (100% occupancy).
Example: Imagine you are running a 300-room hotel and you know that you can expect a 5 % no-show. You sell 315 rooms. 15 guests do not show up as expected and you closed out with a perfect occupancy, Of course, sometimes things do not go as planned – rate of no-shows change, rooms get out of order, etc.  To optimize your overbooking strategy Below statistical and historical data should be stored and processed by the reservation manager or revenue manager to calculate optimum overbooking levels to consider:

• The total number of rooms available.
• Rate of a no-show by business segment
• Is front desk properly trained/equipped in walking guests
• Confirmed reservations vs no-shows based on historical data.
• Credit Card / Guaranteed reservations vs no-shows based on historical data.
• Expected last minute cancellations.
• Predicted stay overs / extended in house booking and predicted under stays / guest in house early departure.
• Predicted Walk-in guests.
• Room types wise overbooking levels.
• Cost of a walking / turn away a customer

The Pseudo City Code (PCC) or Office ID (OID) is an alpha-numeric identification code, usually 3-5 characters long) alpha-numeric (or combination of both) code identifier for a corporate user of the GDS, typically a travel agency to differentiate between different travel agency offices. Example of a PCC/OID: “AMSX1234P”. The code is unique to each travel agency which identifies the location of the terminal of a travel agency which makes reservations for a designated company.

Hotel property management systems (PMS) is a software or set of solutions that enabled a hotel or group of hotels to manage their day-to-day hotel operations activities, such as booking reservations, guest check-in/checkout, room assignment, managing room rates, housekeeping, maintenance and billing, it is also contains information about available and occupied guest rooms, future reservations, and guest charges.
Nowadays PMS capabilities have expanded beyond core functions like room inventory, reservations, housekeeping and room assignments, to include all areas of hotel operations. Now you can also schedule preventive maintenance, draw up room attendant sheets for housekeeping and even manage your meeting, conference and banqueting rooms, The interface to a CRS (also see CRS) is an additional option in order to transfer availability information. Additionally, various interfaces are available to create further links to external systems such as restaurant and banquet cash registers, minibar, and telephone or call centres.

Passenger Name Record (PNR) is a booking record for a passenger, or a group of passengers travelling together in the GDS. A PNR can include all segments of the client’s itinerary such as air flights, rental cars, and hotel reservations.  A PNR is crated and “owned” by the travel agent and remains in the GDS database.  CROs and individual hotels may not view or change a guest’s PNR.
Also, PNR called a booking file, is a digital document with details of the itinerary for a passenger or a group of passengers traveling together. It’s an essential part of the flight booking process that precedes and enables ticketing.

A point-of-sale system (POS) is primarily tool that allows your hotel to accept payments from the hotel customers in return of products or services used by the customers, and used for processing and managing transactions within a hotel’s various revenue-generating outlets, such as restaurants, bars, gift shops, spa facilities, and other amenities. It acts as a centralized platform to handle sales and payment transactions efficiently.

Profit Per Available Room (ProPAR) is a calculation of hotel profit earnings for each available room on the property. The calculation is made using operating profit as a base calculation, which accounts for movements in both changes in room revenue and operating expenses. For hotel owners, PROFPAR is a good metric for evaluating sales growth and management’s ability to control operating expenses, in some cases, it can be used to assess whether to accept a group booking based on average ancillary spend on other hotel features, services, or amenities, to determine whether or not to sacrifice their Average Daily Rate (ADR) for a more lucrative group booking at a lower daily rate.
ProPAR (Profits Per Available Room) Calculation
PROFPAR is calculated by dividing a hotel’s operating profit per year by the number of daily available rooms per year, simply splits the profit into the number of rooms that were available for the period.  Out of service rooms will be taken out of the calculation.
Formula: Profits Per Available Room = (Operating Profit Per Year ÷ Daily Available Rooms Per Year)
Example: Total Hotel Operating Profit Per Year = $1,000,000 and Daily Available Rooms Per Year = 2,500, your Profits Per Available Room would be $400
$1,000,000 (Hotel Operating Profit Per Year) ÷ 2,500 Daily Available Rooms Per Year = $400 Profits Per Available Room.

Pay-Per-Click (PPC) is an online marketing or advertising campaign in which a hotel targets a keyword to promote their website to a specific set of online searchers and pay a fee every time their ad is clicked on. With this method, hotels can essentially “buy” visitors to their booking site through strategically placed ads, to reach more potential customers than organic traffic may be able to bring you.
The amount of money you spend on this type of advertising depends directly on how many users click on the ad when they see it. Depending on the type of PPC campaign hotel choose, a user might see the hotel ad while strolling through social media, browsing Amazon, using the Google search bar and more.
PPC ads show up on the top and the right side of a search engine results page (in green in photo below) after a user has entered the query into the search engine. The ad will enter an auction for the position, and the winning ad will be shown.
Hotels are constantly battling dependency on OTAs, like Expedia, Booking.com and Travelocity, which collect a hefty margin for each booking. PPC efforts allow hotels to capture some of the market that would have gone straight to an OTA, and encourages guests to book accommodations on the hotel website. Hotels can direct traffic to their specific property. This ensures that the conversion (and revenue!) stays with your property, not on a different property in the same area.

Predictive analytics is a branch of advanced analytics that makes predictions/forecast about unknown future outcomes using historical data and forward-looking data combined with statistical modeling, data mining techniques and machine learning. Revenue management team employ predictive analytics to find patterns in this data to identify risks and opportunities. Predictive analytics is often associated with big data and data science.

Price sensitivity is how demand changes with the change in the cost of a hotel products or services to measure the impact of price points on consumer purchasing behaviors. In other words, price sensitivity measures the percentage of sales you will lose or gain at any particular price point relative to another lower or higher price point. This means a thorough understanding of your product’s price sensitivity will help you uncover your revenue maximizing price band as well as the impact of pricing changes on your sales numbers.

A hotel package is a set of products or services that are bundled together and offered at a discounted rate. These packages are typically aimed at the tourist market, with the hope that they will generate more revenue than if each component were sold separately.
A hotel package includes many different things. It can include transportation from the airport to the hotel, or it can include breakfast in the morning, dinner at night. It might also include a tour, such as a visit to an art gallery or historical site.
The most common time of package rate is in an all-inclusive hotel where in the purchase of a room also includes a certain number of drinks, meals and activities during a stay. This option is popular amongst price-conscious travellers and families who are looking for a budget-friendly vacations.

Pace or pickup Reports refers to bookings activity that have been made since the last report, most commonly is the daily one with detail breakdown of the hotel’s monthly pick up by day in terms of Room Nights, ADR, Occupancy and RevPar.  The Daily Pick up or Daily Pace Report tells you how many bookings have been made since yesterday. Usually designed to give the reader a quick snapshot of future rooms revenue versus the previous day, previous month and previous year. It also provides the booking pace by comparing figures with the previous year.
Since this type of report is typically widely distributed to many functions (i.e Sales, Marketing, Executives), the data tends to be aggregated to focus on total rooms performance by market taking into consideration few things to focus on in the Pick-up report include Room nights, Revenue and Bookings.

Penetration Pricing is used most frequently in newer hotels with the process of offering initially low rates to grow occupancy and then raising room rates as availability dwindles. It is a strategy to set prices among the most affordable in the market. As its name suggests, it is used for new hotels and properties to penetrate the market and drive hotel occupancy to reach a certain level and can be effective, after meeting the desired occupancy threshold, hotels introduce higher rack rates and begin to restrict discounts, optimizing the revenue potential of remaining available rooms.
If penetration pricing doesn’t drive down market rates overall. Equal pricing sets hotel rates at values comparable to the competition. When using this strategy, other factors in a hotel’s value proposition are often used to further attract consumers.

Preferred Rates are a hotel corporate rates usually negotiated beforehand between the hotel or hotel chain and a business company that are discounted based on volume, Once the company’s special rate has been negotiated, the company rates called preferred rate, other terms referring to preferred rates are: contracted negotiated, multi-level, tiered and secured rates depending on the GDSs.

Price fencing is the revenue management practice of setting up rules and restrictions such as advance booking cut-offs or non-refundable payments that allow customers to segment themselves into appropriate rate categories based on their needs, behavior, or willingness to pay for a products and services at a specific price, the purpose is to prohibit customers from leaping from one segment to another in an attempt to receive a lower rate and to optimize hoel revenue results, Meaning that if a customer needs to book a certain rate, there will be specific conditions that will apply. By placing restrictions on these offers, hotels create a barrier, or fence, around these uniquely flexible travelers.
For example, if a hotel discounts a standard rack rate for a specific time period (i.e. flash sale) it usually aims to attract new clients who maybe would not be willing to pay a standard rate. However, the hotel doesn’t want to offer the same discounted rates to a customer who is willing to pay the standard rate. Therefore, what the hotel can do is to put so called Fences ‘around the special offer rates’ to protect/ justify the non-discounted rates against existing clients (guests who have already booked at a normal rate can´t ask for a discount anymore).

Price Elasticity is the positive or negative correlation between how a change in price affects the demand. The higher the number, the more a price change reduces demand to measures the responsiveness of demand for a product or service to changes in its price. The lower the number, the more a price change increases demand.
Price elasticity is a critical tool in revenue management as it helps hoteliers optimize their pricing strategies and achieve higher profitability and helps hoteliers understand how much their customers are willing to pay for their rooms and services. Understanding the factors that affect price elasticity and utilizing the right tools to manage it can help hoteliers stay competitive in a highly dynamic and constantly evolving industry.
Price elasticity calculation is   by dividing the change in demand over the change in price. (Price Elasticity = (percentage change in quantity)/(percentage price change) This formula empowers revenue managers to understand how a particular change in price affects demand.

Price Positioning is a determination of where a hotel’s prices stand in comparison agonist the hotel comp set. Price positioning can be used to evaluate daily room rates, holiday rate promotions, spa and food and beverage prices, and more. Some of the most common strategies for price positioning include penetration pricing, skimming pricing, equal pricing, and surrounding pricing.
Price Positioning is used to evaluate whether changes to a hotel’s daily rates are needed. The decisions made after determining if price positioning can help a hotel or property keep its rates competitive. The goal of successful price positioning is to make consumers recognize your product and/or service as unique and clearly distinct from the competition.
Hotel revenue managers typically use a matrix to display price positioning. There are several strategies a hotel can take with its price positioning.
Knowing you are positioning, there are many different strategies that will allow you to position your products and services according to your chosen position. Some of which are market led pricing strategy, price lining strategy, undercut strategy, skim strategy, surround strategy and flexible pricing etc.

Qualified Rate is a rate the guest must qualify for and requires the customer to be associated with a particular organization or to have a specific affiliation in order to book, also Identification is required upon check-in to apply the rate. The qualified rate might apply for customers such as a corporate rate for the guest’s company, a rate available due to an affiliation such as AARP, Senior Citizen, AAA, Government, Employee Rate, a promotional package rate with specific booking conditions, etc.

Quarter is a three-month period and always refers to the same months every year. The first calendar quarter is January through March. The second is April through June, the third is July through September, and the fourth is October through December. Fiscal quarters can be either 13 or 14 weeks long and their start and end dates vary from year to year.

Quarter is Often used to summarize accounting data. Used, for example; in, “What is our sales forecast for the first quarter of next year?” When a hotel reports its financial results for each quarter, it’s important to note whether the quarters are sequential or not?

Quad or quadruple room means that comfortably and/or legally up to 4 guests can be accommodated in that room. Depending on your needs if it is suitable. The quad room may be configured with different bed sizes to ensure four hotel guests can be accommodated comfortably.
Common configurations of hotel quad rooms might include, two single beds and a double bed, A bunk bed and a double bed, two bunk beds, Two double beds.

Queen Room is a room with queen-size bed; may be occupied by one or more people, (Size: 153 x 203 cm).

Queen bed is a bed usually measures approximately 60 inches wide by 80 inches long—5 feet by 8 and 2/3 feet. (150×200 cm), where there are three type of queen bed Standard queen-sized bed, Olympic or expanded-size queen bed, and The California queen bed.

 A quad room is set up for four people to stay comfortably. This means the room will have two double beds. Some, however, may be set up dormitory-style with bunks or twins, so check with the property to make sure.

A computerized system usually located in the hotel lobby, which allows the guest with credit cards to check-in while keeping-off the Front Desk.

Registration Card (RC) is a form provide by the front office team to the arriving guests to record their information for official purposes such as names, addresses, contact number, purpose of stay at the hotel (usually business or pleasure), and passport and visa details in case of foreign guest and other details including mode of transportation used, nationality, purpose of visit, method of payment, and length of stay.
It is the responsibility of the front office staff not to reveal the guest information to unauthorized persons.
The RC includes a space provided for signature, room rate and room number. Additional questions may be included as a part of the hotel’s market research platform.

Revenue per available Square Meters (RevPAM)  is a hotel KPI that measures a hotel’s ability to generate revenue from its banquet and conference spaces, meaning it is the average amount of revenue a hotel generates per available square meter when it rents rooms for a banquet or conference or revenue received by restaurant or function space per square meters representing the capacity available for sale per meters.
RevPAM is a good metric of how well a hotel is utilizing its banquet and conference space. RevPAM can be used in conjunction with other hotel revenue KPIs (such as RevPAR) to better understand the pros and cons of accepting group bookings. Because RevPAM does not include revenue from room charges or breakfast, it can be used to evaluate in-hour conference and banquet guests, as well as guests that aren’t staying at a hotel.
Most often RevPAM used to measure the effectiveness with which revenue management activity balances price and volume to generate customer’s revenue per available meters and if the available space consumed VS number of covers in order to maximizing revenue from banquet and conference sales, where the revenue management team can always think to utilize many spaces in the hotel to maximizing revenue such as, Restaurants and bars, Conference or meeting rooms, Car parks and entrances, Lobby and front desk and Amenities such as gyms, spas, or pools.
RevPAM (Revenue per Available Square Meters) Calculation
RevPAM is a metric that takes the entire space of the property into the equation, as opposed to simply looking at RevPAR or TrevPAR. This means hoteliers can get even more granular with their revenue management strategies.
Other metrics that take into account revenue outside of room charges include RevPOM (revenue per occupied metre) and RevPEC (revenue per event customer)
RevPAM is calculated by dividing hotel revenue by a hotel’s available square meters of banquet space at any giving period. For this metric, revenue should not include room charges or revenue from breakfast F&B.
Formula: RevPAM = Hotel Revenue ÷ Available Square Meters of Banquet Space (m²).
Example: Total Hotel Revenue = $1,000,000 and Available Square Meters of Banquet Space = 2,000 (m²), your Revenue per available Square Meters $50
$1,000,000 (Total Hotel Revenue) ÷ 2,000 (m²) Available Square Meters of Hotel Banquet Space = $50 Revenue per available Square Meters.

Revenue per Available Room (RevPAR) is the revenue generated per available room, whether or not they are occupied. RevPAR helps hotels measure their revenue generating performance to accurately price rooms. Since it’s such a widely used metric, RevPAR can help hotels measure themselves against other properties or brands.
RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. It is a critical metric for hotels to plan for high and low seasons. It helps hotels measure the efficiency of their operations by tracking how well they’re filling available rooms at their Average Daily Rate (ADR). And since RevPAR measures revenue made during a certain period of time, it can be used to compare any given time period against previous periods, and measure the long-term performance of a property, however an increase in a property’s RevPAR means that its average room rate or its occupancy rate is improving. However, an increase in RevPAR does not necessarily mean better performance.
RevPAR allows revenue managers to compare revenue for a given period against previous periods. For example, it allows revenue comparisons for the current calendar year against the previous year’s numbers. This helps managers understand long-term performance and forecast future trends., but RevPAR alone is not a good measure of overall performance. A hotel may have a lower RevPAR but still have more rooms that earn higher revenues. In addition, certain larger rooms (i.e., penthouses) may overcompensate for lower quality rooms that are not being checked or are unavailable.
Like other financial metrics, RevPAR is best suited as a comparison tool. A hotel can compare its own RevPAR statistics over time to see whether the metric fluctuates with seasons or changes due to consumer preference. In addition, RevPAR can be used to compare against other hotels in the area to get a better sense of how one hotel may be performing compared to other. Keep in mind that this financial performance is limited to just revenue and does not consider expenses.
RevPAR (Revenue per Available Room) Calculation
There are two ways to calculate RevPAR, either by dividing total room revenue by the total number of rooms available during the period in question or by multiplying the property’s average daily room rate (ADR) by the property’s occupancy rate, it can be calculated daily, weekly, and monthly and compare it vs comp set or previous period.
First, hotel management can take the total amount of room rent revenue and divide it by the total rooms available to have been rented. Note that the total rooms available includes rooms that were available but were not occupied for this calculation.
Formula: RevPAR = Total Hotel Revenue ÷ Total Available Rooms
Example: Total Hotel Revenue = $100,000 and Total Available Rooms = 300, your Revenue per available Room would be $333.33
$100,000 (Total Hotel Revenue) ÷ 300 (Total Available Rooms = $333.33 Revenue per available Rooms
Alternatively, hotel management can calculate RevPAR by taking the average daily rate of revenue and multiply it by the occupancy rate. This method is more appropriate and more accurate for fully-occupied hotels with limited rooms that are unavailable as it is based on total occupancy, not total availability.
Formula: RevPAR = Total Hotel ADR X Occupancy Rate
Example: Total Hotel ADR = $833.33 and Hotel Occupancy rate = 40 %, your Revenue per available Room would be $333.33
$833.33 (Total Hotel ADR) ÷ 300 (Total Hotel Occupancy rate = $0.40 Revenue per available Rooms
Either formula returns a dollar amount that is theoretically lower than the actual daily rate (as a hotel can’t be or at least should not be occupied past 100%).

Revenue per occupied room (RevPOR) is a performance metric that measures the amount of total revenue generated by a hotel for a given period for every room occupied to determine how much profit a hotel earns when a customer enters the hotel.
RevPOR takes into account optional services and items guests can purchase at the hotel, as well as any additional sales made during a stay including ancillary revenues such as room service, dry cleaning, and spa sales to show how successful a hotel is in selling more than just a room to guests.
Revenue per Occupied Room can be measured daily, weekly, monthly, or annually, where it is a useful KPI for evaluating hotel performance during seasonal periods of low demand. While seasonal trends can drive down other KPIs, RevPOR prioritizes an evaluation of how much an average guest spends on hotel products and services. This is a departure from many other KPIs (like RevPAR) that look at the overall number of guests. The choice that a hotel makes largely depends on the types of insights that that hotel is seeking and it is differs from RevPAR because it accounts for all revenue a hotel earns when a room is occupied. It accounts for optional services guests can purchase at the hotel, as well as any additional sales made during a stay.
RevPOR (Revenue per Occupied Room) Calculation
RevPOR is calculated by dividing a hotel’s total revenue by the number of rooms actually sold / occupied to/by guests for a given time period. Total Revenue should account for all guest revenue from accommodations, breakfast, spa services, bar and mini bar sales, and any additional revenue.
Revenue per occupied room is useful for gauging how hotel management is performing. This is because the metric strips out the impact of seasonally influenced occupancy rates to show how much profit a hotelier is making from guests who stay at the hotel.
Formula: RevPOR = Total Hotel Revenue ÷ (Total Hotel Occupied Rooms)
NB. Total Revenue = Room Revenue + Breakfast + Bar + Mini Bar + Spa + Any Additional Revenue
Example: Total Hotel Revenue is $100,000 and Total Hotel Occupied Rooms 250, your Revenue per Occupied Room would be $400
$100,000 ÷ 250 = $400

Revenue Per Available Seat Hour (RevPASH) is a KPI used by food and beverage outlets in a hotel to measures the income/benefit of each seat available per hour. With RevPASH, hotels can determine which seat to assign to each guest during a specific time period that benefits the restaurant best to allows hotels to better plan the food and beverage operations because it states revenue based on both time (hour) and capacity (seats). It is similar to RevPAR, which is used to evaluate room revenue. RevPASH measures revenue generated by a food and beverage (F&B) outlet per hour based on available seats. It can be calculated daily, weekly, and monthly.
There is plenty of discussion about whether RevPASH should be calculated based on the opening time of each check, or the actual duration of the meal but in all cases RevPASH is a useful KPI for food and beverage managers to get a better understanding of how a hotel’s various F&B outlets are performing, and Because all F&B visitors don’t always make advance reservation before their visit, this metric is a useful way for food and beverage managers to evaluate revenue generated by walk-in guests during opening hours. It is used to plan F&B promotions, labour scheduling, food purchasing, marketing tools, and budgeting during periods of lowest hotel occupancy.
REVPASH (Revenue per Available Seats and Hour) Calculation
RevPASH is calculated by first multiplying available seats by opening hours. Then you can divide total outlet revenue by the above result for a final RevPASH calculation. When calculating RevPASH, the number of opening hours you use depends on the time period for which you wish to calculate it.Simply it is one way to calculate RevPASH is to pick a period of reference (shift, day, week, etc.) and divide the revenue for that period by the number of seating hours. Seating hours are the number of available seats multiplied by the number of hours in the chosen period.
Formula: RevPASH = Total Outlet Revenue ÷ (Available Seats x Opening Hours)
Example: (We’ll make this RevPASH calculation for a weekly period based on 82 seats and are open from noon to 11 p.m. seven days a week. That translates to 6,314 available seat hours (ASH) per week (82 seats x 11 hours x 7 days).
Total Hotel Outlet Revenue = $100,000, Total Available Seats = 82 per day, and Opening Hours is 11 hours per day for seven days, your Revenue per Available Seats and Hour would be $3.17
$100,000 (Total Hotel Outlet Revenue) ÷ 6,314 (Total Available Seats = $3.17 Revenue per Seats and Hour.
Obviously, the higher the RevPASH, the more effective your operation, let us take another example for a restaurant has an income of $700 between 8 p.m. and 9 p.m. and has a total of 35 seats on the floor. Following the RevPASH formula, the average income of each diner during that hour is $20.
If the same restaurant earns $2,000 during its lunch shift, between 12 p.m. and 3 p.m. Considering it has 35 seats, the RevPASH is $19.04 per person.
$2,000 / (35 seats x 3 hours x 1 day) = $19.04 Later that day, the restaurant earns $3,500 during its dinner shift, between 5 p.m. and 9 p.m. The RevPASH is $25.
$3,500 / (35 seats x 4 hours x 1 day) = $25
As the manager of this restaurant, the RevPASH calculations show that more money is earned during the dinner shift than the lunch shift. By showing the difference in the sales per seat averages, RevPASH allows you to investigate why there are differences and to start making educated decisions to improve the lunch service. If one shift has significantly lower profits per seats, train your staff on best practices to increase profitability.
In this way, the metric becomes essential to your revenue management, as it exactly pinpoints patterns in sales. As you get accustomed to calculating the RevPASH, you may find that with more restaurant data, you can earn more and perform better.

Revenue per occupied space (RevPOS) is a performance metric that measures the amount of total revenue generated by a hotel for a given period for every space occupied to determine how much profit a hotel earns when a customer use any of the hotel spaces i.e., meeting room, banquet and outlets.
RevPOS takes into account optional services and items guests can purchase at the hotel during the events, as well as any additional sales made during a meeting including ancillary revenues such as room service, lunch, dinner, coffee break to show how successful a hotel is in selling more than just an event to guests.
Revenue per Occupied Space can be measured daily, weekly, monthly, or annually, where it is a useful KPI for evaluating hotel performance during seasonal periods of low demand. While seasonal trends can drive down other KPIs, RevPOS prioritizes an evaluation of how much an average guest spends on hotel products and services. This is a departure from many other KPIs (like REVPASH) that look at the overall number of guests. The choice that a hotel makes largely depends on the types of insights that that hotel is seeking and it is differs from REVPASH because it accounts for all revenue a hotel earns when a space is occupied. It accounts for optional services guests can purchase at the hotel, as well as any additional sales made during an event.
RevPOS (Revenue per Occupied Space) Calculation
RevPOS is calculated by dividing a hotel’s total revenue by the amount of space actually sold / occupied to/by guests for a given time period. Total Revenue should account for all guest revenue from accommodations, breakfast, spa services, bar and mini bar sales, and any additional revenue.
Revenue per occupied space is useful for gauging how hotel management is performing. This is because the metric strips out the impact of seasonally influenced occupancy rates to show how much profit a hotelier is making from guests who use the hotel meeting rooms or banquets space.
Formula: RevPOS = Total Hotel Revenue ÷ (Total Hotel Occupied Space)
NB. Total Revenue = Room Revenue + Breakfast + Bar + Mini Bar + Spa + Any Additional Revenue
Example: Total Hotel Revenue is $100,000 and Total Hotel Occupied Space 250 meter, your Revenue per Occupied space would be $400
$100,000 ÷ 250 = $400

Revenue Per Available Treatment Hour (RevPATH) is used to measure profitability of spa operations in a hotel or resort property. It measures revenue generated by treatments and accounts for the number of rooms available during normal hours of operation. It helps the spa operation to manage time effectively.
RevPATH works similar to how RevPAR measures the efficiency of hotel room bookings to identify the times of the day (or days of the week) where a spa is bringing in the most revenue and identify opportunities to drive increased revenue. This allows hotel to design premium products for upsells during high demand periods, identify hours that achieve a higher yield. It also helps with identifying periods of low demand where a spa can use promotions to drive additional revenue.
RevPATH (Revenue Per Available Treatment Hour) Calculation
RevPATH is calculated by multiplying a spa’s or the treatment room occupancy rate by its average treatment rate. Average treatment rate is calculated by dividing Total Treatment Revenue by the number of Total Treatments sold. Because occupancy rate is usually expressed as a percentage, it can be easier to convert to a decimal and then multiply it by average treatment rate to achieve RevPATH.
related expenditure per person or by dividing the revenue for the time period in question by the number of treatment-hours available during that interval.” this means that a spa with a treatment room occupancy of 70% and an average-related expenditure of $200, has a RevPATH of $240 (70% x 200). Similarly, a twenty-room spa that makes $1600 on Fridays between 6:00 and 7:00 AM, has a RevPATH of $80 (1600 / [20 x 1]).
Different spas calculate their RevPATH according to their goals. While high-end spas may favor higher expenditure per guests, regular spas may prefer high volumes of business. The bottom line is that “the trade-off between occupancy and average expenditure is a strategic one, and one that must be carefully considered when positioning one’s spa”.
Formula: RevPATH = Spa Occupancy x Average Treatment Rate
Example: Spa Occupancy = 70% / 0.7 and Average Treatment Rate (ATR) = $240, your Revenue Per Available Treatment Hour would be $168
70% X $240 = $168

A Revenue Generation Index (RGI) (an alternative definition for RGI in hotels is “RevPar Index”) is used to determine whether or not a hotel is earning its fair share of revenue in its market, it is useful metric for comparing hotel revenue to the average RevPAR of the competition. Because it uses RevPAR as its primary KPI, an RGI also accounts for occupancy rates.
If a hotel is capturing its fair market share, the index will be 100; if capturing less than its fair market share, a hotel’s index will be less than 100; and if capturing more than its fair market share, a hotel’s index will be greater than 100.
Fair share can be thought of as the subject hotel’s “piece of the pie” in the market. For example, if the subject hotel’s RevPAR is $50 and the RevPAR of its competitive set is $50, the subject hotel’s index would total 100. If the subject hotel’s RevPAR totaled $60, its index would be 120, which indicates that the subject hotel has captured more than its fair share. If the subject hotel’s RevPAR totaled $40, its index would be 80, which indicates that the subject hotel has captured less than its fair share.
RGI (Revenue Generated Index) Calculation
Calculating RGI allows revenue managers to determine if a hotel is receiving a good share of market revenue when compared against its competitors. It is a great way to evaluate whether a hotel is falling short of, remaining on target of, or exceeding expected market share.
An RGI is calculated by dividing your hotel’s RevPAR by the average hotel market RevPAR

• When RGI equal 1 The hotel RevPAR is equal to the average RevPAR of their comp set
• When RGI greater than 1 The hotel RevPAR is higher than the average RevPAR of their comp set
• When RGI less than 1 The hotel RevPAR is less than the average RevPAR of their comp set

RevPAR Index is calculated: (Hotel RevPAR / comp set RevPAR) x 100 = RevPAR Index.
Formula: RGI = Your Hotel’s RevPAR ÷ Hotel Market RevPAR X 100
Example: Your Hotel’s RevPAR was $300 and Hotel Market RevPAR = $400, your RGI would be 75%
$300 (Hotel RevPAR) ÷ $300 (Comp set RevPAR) = 0.75 X 100 = 75% (RGI)
From this RGI result, we can infer that the hotel in question is currently earning less than its fair market share of RevPAR.

Revenue management involves the use of analytics and performance data to help those in the hotel industry predict their customers’ behavior. The data is then utilized to make appropriate decisions in regards to pricing and distribution strategies. The ultimate goal of revenue management is to have the right room for the right person at the right time and place. When this occurs, you will be more likely to maximize hotel revenue, and in turn, profit. It is the art and science of predicting real-time customer demand and optimizing the hotel price and availability to match that demand to maximize revenue. Simply put, selling the right product to the right person at the right time on the right channel for the right price.

A revenue management system (RMS) is a software product that assists with, tracks and sometimes even automates many of the revenue management aspects such as KPI tracking, Competitor pricing, Restriction management, Revenue estimates, and Pricing recommendations in order to achieve maximum revenue or profit by managing availability, room types, stay patterns (future and historical), etc.
The system can analyzes a combination of competitor rates, historical rates, market dynamics, and inventory levels to predict demand and provide rate recommendations for each customer segment and room type across each of the major distribution channels to tailor to each channel. A good revenue management system will automate the entire process and generate rates that can maximize revenue and profitability.
New innovations like real time pricing and total revenue management are making revenue management software smarter than ever. Hotels that switch to using a revenue management system experience an average increase in RevPAR increase between 7-20% – the result of optimized automatic price-setting per room type. Sophisticated revenue management tools can offer insightful data and time-saving productivity tools, allowing hoteliers to increase profit, forecast more accurately, and run more efficiently.

A run of the house room (ROH) is a discounted booking that gives the hotel full discretion over what room a guest will receive. This means that guests can potentially receive any room in the hotel, regardless of price. Rooms are most often chosen based on availability and price by the hotel.
Run of house bookings are generally used for groups and not for transients. When a hotel is working with a group, the group might not care what room type is assigned, as long as a certain number of rooms is reserved. In this case, the hotel can sell the ROH room types to the group. The actual rooms that are given can range from all standard rooms to all luxury rooms, depending on availability.
Run of the house” means that all rooms are the same price, regardless of room type. Reservations for specific rooms or room types are not accepted. The assumption is that guest will be offered the best available room when he arrives at the hotel. Nevertheless, it is advisable to look at other available rooms if the “best” one you are shown first is not to your liking.
A run of house (ROH) room type is the most common or standard room category in a hotel, featuring basic amenities. When you select a run of house room, the actual room is determined by the hotel, according to availability, at the time of check-in. Run of house is a virtual room type that can be any associated, available room type at a hotel. This enables a property to maximize the potential number of rooms being sold
A property can have multiple ROH room types. The property might, for example, have a ROH Standard room type and a ROH Deluxe room type. ROH room type names are user-defined and can be any group of characters. Availability checks take into consideration the number of ROH room types and display the correct room counts.

Return on Investment (ROI) is a core financial performance measure used to evaluate the efficiency of an investment and to compare the efficiency to other investments, so it is an approximate measure of an investment’s profitability.
Most financial and business concepts build upon ROI because its purpose is to tell investors how much money they stand to make in the future if they make an investment right now, ROI is a profitability ratio used to evaluate the gain or loss generated on an investment. In other words, it indicates how much money was earned on an investment, expressed as a percentage of the purchasing price/ initial investment, but • One disadvantage of ROI is that it doesn’t account for how long an investment is held.
ROI      (Return on Investment) Calculation
There are multiple methods for calculating ROI. The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100. it’s a simple calculation that measures how much money you make from an investment minus how much you spent on the investment, it is also adaptable to different kinds of investments such as marketing campaigns or hotel asset acquisitions. However, its flexibility has a downside; this ratio can be manipulated according to one’s perception. The use of the same inputs is essential, to have a good comparison.
ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100.
Formula: ROI = (investment revenue – investment cost) ÷ (investment cost) X 100
Example: Your investment revenue was $300,000 and investment cost = $200,000, your ROI would be 50%
$300,000 (investment revenue) – $200,000 (investment cost) ÷$200,000 (investment cost)   = 0.50 X 100 = 50% (ROI)

Rack rate is the price that a hotel charges for a room before any discounts have been applied. It is sometimes referred to as the published rate and is usually set artificially high, which means that discounts can look extremely generous by comparison, it is the standard price that the hotel assigns to a room type for the year or season.  All other rates that are offered are based on a calculation from the Rack rate.  For example, a group of 20 rooms might be offered at a Group rate of 20% off the Rack rate.  New Years eve might be set at a 100% premium on top of the Rack rate.
Most of the time the rack rate is the approved rate by tourism authority based on many factors like the below such as travel demand, a variety of factors can affect a hotel’s rack rate strategy, including:

• Hotel type or category
• Brand recognition and reputation
• Star rating
• Capacity of service (full-service vs. limited-service)
• Available room types
• Room sizes
• Location
• Hotel amenities and services
  Rack rates are part of the backbone of hotel revenue management. Promotions, discounts, corporate rates, and revenue goals can all be influenced by the rack rate itself, so it’s vital that a hotel’s rack rate strategy is successful.

Rate card is a menu of services or products. Like a menu in a restaurant, at the bare, sometimes rate card is a part of hotel requirement to have rate card on each room includes all rack rates for each room type in the hotel, it will include names and prices of the products or service for restaurant, mini bar, room service, but can also include any number of arbitrary details about the products and the establishment itself.

Rate code is a series of alpha-numeric characters which define a particular rate category at a hotel to the GDS, i.e., WKD is a weekend rate category code.  When used in combination with a room code, the result is a booking code.
Rate codes are used to define the various prices for each room type over a particular date range or rate season. It is possible to identify multiple rate amounts for a single rate code and a separate price per person over a seven-day period (mid-week and weekend).
Rate codes are also used to support property packages that include food, beverage, leisure or other elements. By associating package elements with a rate code, it is possible to build a package of entitlements for a guest staying on the rate.
Rate codes are essential for managing hotel inventory, pricing, and distribution in PMS to define different rates for different market segments, seasons, channels, and promotions.

Rate Parity is a common term in the hospitality industry used to describe a strategy to maintain rate consistency across sales channels, Rate parity is the If the quoted price on hotels’ own websites is higher or lower than the price shown by OTAs and other third-party channels then there is disparity.
Rate Parity usually enforced through contractual agreements between hotel companies and third-party vendors, that the same rate with the same conditions for a particular room type is offered in all distribution channels of a hotel, so it is a practice of maintaining consistent rates across all distribution channels. If the quoted price on hotels’ own websites is the same as the price shown by OTAs and other third-party channels then there is rate parity.
The Internet provides a high price transparency to the customers and hence is an excellent opportunity for comparison. Rate parity strengthens customer loyalty and trust. It encourages customers to book in any direct channel offered by the hotel, based on the idea that they get the same rate regardless of the channel they access.

The process whereby a hotel’s CRS edits the booking segment and returns a rate that is equal to or less than the rate shown in the segment.

Rate Distribution System is the same channel manger system, where it is a system used to distribute a hotel’s rates and inventory to direct and indirect channels, a hotel distribution channel is anywhere — online or offline — that properties can sell rooms to potential customers. Examples of hotel distribution channels include hotel websites, online travel agencies (OTAs), global distribution systems (GDS), metasearch sites, direct phone bookings, and more.

Rate shopper system is an online analysis tool and service used by hotels to automate their rate comparison process with competitor. With the benefit of helping hoteliers make easier and quicker pricing decisions, rate intelligence is essential in revenue management where it can be integrated with hotel PMS data so revenue manager can look at historical data, which can be compared in the same platform as live data to tie together ever-changing rates across various channels through daily live shops that provide a snapshot of what is happening in the market
A good rate shopping system should provide accurate data collected through real-time rate shopping capabilities. Market intelligence software should also provide an excel tool for flexible data analysis as well as an API for easy connectivity with your revenue management system, property management system, channel manager, and even external data sources like OTAs. Rate shoppers should be able to compare rates across room types at different properties to give a more holistic yet granular view of the market.

Rate View provides an accurate, comprehensive, and forward-looking snapshot of rates and availability from more than 130 major travel websites, brand sites, and the GDS. Reports are based on user-defined criteria.

Regret is where a hotel tells a prospective guest that a requested room type is sold out or any other reason besides availability or why a call to CRO does not become a booking.  Regrets indicate turn-away for all other reasons, such as rate, restrictions such as closed-to-arrival and requested room type not available,  this is called a Denial. Denials and Regrets are part and parcel of hotel management, and savvy hoteliers and large hotel chain revenue management teams will factor Regrets and Denials into their pricing and revenue management. However, with Regrets it is impossible to make wholly accurate forecasts, as much of it is still left to guesswork once all gathered statistics and other key data is carefully analyzed.
Many hotels suffer numerous Regrets each year, simply because the prospective customer used a different distribution channel (an OTA, a GDS, or a high street booking agency, etc.) at the last minute, a revenue management team should track this regret to avoid the denial and regret reasons.

Repeat Business is the Business that continues to return to the hotel either individuals or groups in a given period could be weekly, monthly or yearly , thereby generating increased profits, in most cases hotels rely on repeat business to remain profitable. Repeat customers are more likely to book directly with the hotel, which helps to reduce costs associated with third-party booking sites. Additionally, repeat customers are more likely to provide positive reviews, which can help to attract new customers. Finally, repeat customers are more likely to take advantage of loyalty programs, which can help to increase customer loyalty and satisfaction.

Hotel reputation software allows hotels to manage online feedback from a single place, including reviews on industry websites and comments on social networking platforms review sites, and other online sources. It is difficult to overstate how important hotel online reputation can be, as it can make or break the success of your entire business so hotels can stay aware of their brand image from leveraging positive customer feedback to flagging negative remarks and performing damage control, the reputation management platform allows you to react to your audience’s feedback in real-time where Reputation Management System make it easy to invite customers to fill out the reviews that a brand needs to keep its company in the spotlight.
Using hotel reputation management software, hotels can monitor feedback, respond to reviews, amplify positive comments, and even set the record straight on comments you feel are unfair or unwarranted. In a sense, reputation software allows you to take control of your reputation instead of allowing it to be dictated to you.

Reputation Pricing is a kind of software that integrates a hotel’s online reputation, guest reviews and ratings into its revenue management strategy to optimize customer experience, it is a new and exciting way of utilizing hotel reputation data in hotel management. Reputation Pricing aligns hotel’s pricing strategy with guests’ knowledge, expectations, and willingness to pay – at the point of purchase. In the age of big data and the abundance of social channels, user generated content acts as a signaling mechanism by the better-informed party to the less-informed party to communicate the true characteristics of a product or service.

Reservation is defined as ‘blocking or booking a particular room type for a guest, for a definite period of time, for a particular guest’. To ensure a safe and secure place for stay during their visit to another town, guests generally prefer to make advance reservations in hotels and other types of accommodation units.
All hotels will readily accept reservations in order to achieve high occupancy and to maximize their room revenue. When a guest makes a reservation for a definite time period, it is expected that the hotel will accept and honor its commitment by a contract between the hotel and the guest. A reservation is therefore is a bilateral contract between a hotel and a guest, according to which the hotel must provide the specified room type to the guest and the guest must agree to pay all relevant charges. This is also known as contract of booking.

Retailer is Another term for travel agents travel agencies that offer services directly to the end user, the tourist. Therefore, they provide an intermediary service between a wholesaler and the customer. They have the task of preparing, organizing and selling the services to the tourist so that the trip they are going on is tailored to their liking.
There are different forms that a retail business can take in this area of the tourism industry. For example, a retail travel agency can have the following characteristics that differentiate it from other companies such as Outbound, Inbound and OTA’s.

Revenue per attendee is simply the revenue for a given date range divided by the total number of actual attendees for that given time period. This crucial metric helps hotels understand the relationship between how busy M&E space is (utilization) and how much revenue is being generated within that meeting space. As hotels begin to monitor attendee density in relation to revenue per attendee, they can identify where they have maximized their revenue opportunity and find additional opportunity where space utilization is high and revenue is low.
One may ask, why worry about the revenue per attendee if there is a minimum of $10,000 on a ballroom. If the minimum is achieved, there may be little concern if there were two or 200 attendees. While that may be true, how does a hotel establish that $10,000 is the revenue minimum for the given venue?
If hotels can establish their minimum revenues for venues, and their optimal attendee density, they can calculate their minimum revenue per attendee when the venue is occupied at the optimal attendee level. Knowing this, hotels can decide when to flex their pricing based on demand, so that minimums don’t have to be static across different days of week, months or seasons where hoteliers in high demand time periods, you can either strictly enforce the optimal number of attendees or the resulting revenue from the optimal number of attendees. The combination of these metrics allows hotels to be more flexible and thoughtful about their demand-based pricing strategy for meetings & events.

Room Block is a predetermined number of rooms reserved for a specific customer in advance or for groups such as conference, tour. Meetings, weddings for a set period of time based on a contract agreement and shouldn’t be available for sales to other costumers. Hotel revenue managers or reservation managers can also block rooms in case of temporary unavailability: for example, rooms under refurbishment.

Room Class is categories used to group room types with similar values and can be configured to create groupings of room types for easier and more highly controlled room inventory management.  Room classes typically define groups of room types having some characteristic in common. For example, a large property might have room classes that reflect the physical location of the rooms – Tower, Plaza, and Suites, for example.  For each room class, the property might then designate appropriate room types. For example, the Tower and Suites room classes might have Deluxe and Superior type rooms, while the Plaza room class might include the Double room type as well as Deluxe and Superior.  Room classes could also be used to identify spans of room numbers.

Room Code is used to identify each kind of room available in a property which can be configured to reflect the primary characteristic of the room — Deluxe, Superior, Standard. Keep in mind that availability is calculated and displayed by room type; therefore, not only should room codes be meaningful for this purpose, but you should only define those room code that you consider being vital for tracking availability and statistics.
Before revenue management team create Rooms Codes and made the setup[for a property in the PMS Room Classes, Room Types, and Room Features should be defined to enables you to define characteristics for each sellable room in your property for it to be used. For example, for a 2 Bedroom Parlor Suite, you may need to create each of the 2 bedrooms and the Parlor separately if you want sell them separately or create a single suite as one room if you want to sell it as a single entity.
Sometime room code used to identify a particular room type at a hotel to the GDS with series of alpha-numeric characters.

Room nights is a statistical metric means the number of times a hotel room is used or available for use by a guest(s) for an overnight stay of up to 24 hours in a given period.
Room Night Calculation
It is calculated by multiplying one room times one night, for example A guest booking one room for three nights would be said to generate three room nights.
Formula: Room Nights = (room X number of nights stay)
Example: 1 room X 3 nights = 3 room nights

Room rate is the price charged per night for each room category at a hotel, from standard rooms to deluxe suites. Rates are determined by a property’s operational costs, competitors, local market, and season. They are dynamic and can change rapidly based on market conditions which can be fluctuated between the base rate (the lowest possible price you can charge to break even) and the rack rate (the highest possible price before discounts).

Room service or in-room dining is a hotel service enabling guests to choose items of food and drinks for delivery to their hotel room for consumption out of the hotel normal restaurant hours, it is organized as a subdivision within the food and beverage department of high-end hotel and resort properties and consider one of the most important foods and beverage departments of a hotel.
Room service may be provided on a 24-hour basis or limited to late night hours only. Due to the cost of customized orders and delivery of room service, prices charged to the patron are typically sometimes much higher than in the hotel’s restaurant.

Room Type is a collection of rooms sharing a common element at the hotel. A room type might be a suite or a single room with a double bed, poolside or ocean-side. A room may belong to multiple room types.
A room type code set up in hotel PMS is used to identify each kind of room available in your property. You might, for example, configure room types that reflect the primary characteristic of the room — Deluxe, Superior, Standard. Keep in mind that availability is calculated and displayed by room type; therefore, not only should room types be meaningful for this purpose, but you should only define those room types that you consider being vital for tracking availability and statistics.
Different room types can also cater to different price points and the range of options available will give potential guests an idea of the overall standard of hotel, where room type can be categorized based the below factors:

• Room Type by Occupancy (Single, Double, Triple Room or Quadruple)
• Room Type by Bed Type (Queen Bed, King bed, Twin bed, Double-double Room or Studio)
• Room Type by Design & Layout (Standard Room, Deluxe Room, Superior Room, Executive Room, Junior Suite, Executive Suite, Presidential suite.
• Room Type by Amenities or View (Sea view, City view, Garden view, Pool view, smoking, non-smoking

Classifying different hotel rooms helps customers make informed choices and understand exactly what they’re booking when planning their stay. Providing classifications gives a clearer picture of what the hotel offers in terms of accommodation and services, the room size, number and type of beds, amenities, what you can do in the room (for example, smoking or no smoking) and other factors might be used to categorize rooms into a type. Rooms can be categorized using a number of different criteria, including the size of the room, the expected length of stay and the types of services provided, such as hotel breakfasts. Categorization also helps hotels determine the appropriate number of rooms to offer, set room rates, and optimize staffing. The range of room types on offer will depend on the hotel’s location and target customer base.
The type of hotel, the characteristics and layout of the hotel, its location and the guests will help a hotelier determine what combination of hotel room types should be on offer at a particular hotel.

Hotel room status is a sign that is used to make it easier for the operational team to identify what actions should be applied to that room and refers to the current housekeeping cleaning status of the room. During a guest’s stay, the status of the guest room changes several times.
The status of this room will appear in the property management system (PMS) and can be seen by all teams in the hotel such as front office team, housekeeping, maintenance.
Here are some of the common room statuses we encounter when we are on duty in hotels such as Vacant Clean, Vacant Dirty, Occupied Clean, Occupied Dirty, DND (Do Not Disturb), OOS (Out of Service), OOO (Out of Order), Check-in (C/I), Check Out (C/O), DU (Day Use), VIP (Very Important Person), LC – Late Checkout, EC – Early Check-in, L/L – Light Luggage, NS – No Show, …. etc.

Hotel search engine marketing (SEM) is the practice of using paid ads to get your hotel to rank higher in search engine results. With Google averaging 90 billion visits per month, with A strong paid Search Engine Marketing (SEM), strategy and having your hotel rank in the top search results can drive major visibility and traffic to your hotel website to driving bookings directly to hotel website, otherwise your competitors will be, as well as Online Travel Agencies (OTAs) who spend billions bidding on key terms.
Most potential guests today do all of their accommodation research and booking online. Therefore, being near the top of search results is key to ensuring that you make the list of accommodations for consideration
Many properties rely on organic or non-paid digital marketing strategies to get them to the top of search engine results, which can take months or even years to achieve top rankings. SEM campaigns can help you see more instant results. This strategy can be beneficial for new properties that are just starting out, or properties that need to reach specific goals and targets within a shorter period of time.

Search engine optimization (SEO) is the process to optimize and improve the ranking of a hotel website on search engines (like Google, Yahoo, and Bing) result pages (SERP) to boost visibility in search engine rankings, with the aim of drive traffic to hotel website, strengthen online presence, attracting more guests from Google searches and enhance your hotel’s bookings.
SEO is an inseparable part of hotel digital marketing and is one of the assured strategies to win over any hotel competitors with the goal of reaching a high rank in search engines on the search result page the idea behind SEO is to optimize hotel Web site content and to structure it accordingly so that the search criteria of search engine algorithms are fulfilled. This can be done complimentary to SEM or separately as an alternative this can happened by targeting relevant keywords, creating unique content, and improving user experience, hoteliers can enhance their websites’ search engine results page (SERP) rankings and increase organic web traffic.

Social, Military, Educational, Religious and Fraternal (SMERF) is an acronym for Social, Military, Educational, Religious and Fraternal groups, and often also includes sports, entertainment, and recreational groups like high school sports teams, fall into this category too. Common SMERF events include weddings, family reunions, religious seminars, and meetings for organizations.
SMERF groups book event space, room blocks, and F&B like corporate groups do, but there are some key differences. Unlike corporate group travelers, SMERF guests generally foot their own bill (rather than charging the company credit card). However, the SMERF segment is known to be more price-sensitive than corporate travelers since guests pay out of pocket for their expenses.

Settle on Departure is the process of settling guest account upon check out for all charges incurred during the guest stay at the hotel. Traditionally at checkout guest is presented a final copy of his/her account folio for review and settlement. Front Office Assistant should confirm how the guest intends to settle the account. Guest may establish credit by presenting a credit card but may choose to settle his bill by cash or travellers cheque. VIP or special guests or corporate accounts should not be asked for settlement if their account is marked that all charges are to be Direct Billed.
Front Office Assistant should bring the guest account balance to zero, called zeroing out. When guest pays by cash or credit card, hotels assume that the payment is full and close the folio. If the account is to be paid through Direct Billing by the hotel, however the account is not brought to a zero balance because it must be transferred to the city ledger and billed through the account receivable system.

Spa Revenue Per Occupied Room (SRevPOR) is a KPI specific to hotel spa operations for analyzing a hotel’s strategic marketing plan. It allows managers to measure the amount of spa revenue being generated per occupied room in the hotel, as well as identify trends based on seasonal demand, promotions, and other factors. It helps both spa and hotel revenue managers identify the relationship between spa operations and hotel occupancy to optimize time management by allowing them to analyze the differences between internal and external utilization levels. This ultimately helps them make informed changes to a spa’s revenue management strategy. SRevPOR is often used alongside a hotel’s RevPOR calculation.
SRevPOR (Spa Revenue Per Occupied Room) Calculation
SRevPOR is calculated by dividing total spa revenue by the total number of occupied rooms. For the most accurate SRevPOR calculation, spa revenue should only include revenue from treatments, product sales, facility fees, and other ancillary sale, where the data used to calculate SRevPOR is pulled from a hotel’s Spa Management System.
Formula: SRevPOR = Total Hotel SPA Revenue ÷ Total Hotel Occupied Rooms
Example: Total Hotel SPA Revenue = $15,000 and Total hotel Occupied Rooms = 250 your SRevPOR would be $60
SRevPOR = $15,000 (Total SPA Revenue) ÷ 250 (Total Occupied Rooms) = $60
$15,000 ÷ 250 = $60

Smith Travel Research (STR) is a global provider of competitive benchmarking, information services and research to the hotel industry that tracks supply and demand data for the hotel industry to evaluate a hotel’s performance against its competitive set so they can compare their KPIs. STR reports provide participating property performance data compared to its competitive aggregate and general market, allowing you to follow trends in occupancy, ADR, RevPAR and Market Share.
STR collects performance data from hotels globally and delivers monthly, weekly, and daily data to subscribers. It is common industry practice for chain headquarters, management companies, and owners to provide this information directly to STR who, in turn, shares this data in its STAR Report.

Spa Utilization Ratio (SUR) is a hotel spa KPI that signals how effective a spa is in selling its treatment hours to evaluate how efficiently a spa is managing time and utilizing open hours. It is very similar to how Occupancy Rate evaluates how many rooms are filled in a hotel for a given period, where is Spa you need to measure occupancy levels of each treatment room by the hour and full-day.
SUR help the hotel management to identify utilization rates. By analyzing how effectively (or ineffectively) a hotel is selling treatment hours, managers can identify strategies for improving guest usage, as well as plan promotions to maximize utilization during periods of high (or low) demand.
SUR (Spa Utilization Ratio) Calculation
To calculate the utilization ratio of your spa you need to define, Operation time, treatment rooms NO and hours of treatment sold, where SUR may be calculated daily, weekly, monthly, or annually, however SUR is most effective when evaluated / calculated on a daily basis.
SUR is calculated by dividing the hours of treatment sold by the hours of treatment available. That result is then multiplied by 100 so that the final calculation is expressed as a percentage out of 100.
For example, if a spa has 5 treatments rooms and is open from 10.00 am till 06.00 pm 7 days a week (This gives a possible total of 280 hours of treatment available during a given week). And during the week you have sold for 200 hours of treatment. The occupancy will be 71,42%. The utilization ratio is calculated as follows:
Formula: SUR = (Total Treatment Hours Sold ÷ Total Treatment Hours Available) X 100
Example: Total Treatment Hours Sold = 200 and ÷ Total Treatment Hours Available = 280 your SUR would be 71.42%
SUR = 200 (Total Treatment Hours Sold) ÷ 280 (Total Treatment Hours Available) = 0.7142 X 100 = 71.42 %
200 ÷ 280 X100 = 71.42 %

Sabre Global Distribution System, owned by Sabre Corporation, is a travel reservation system used by travel agents and companies to search, price, book, and ticket travel services provided by airlines, hotels, car rental companies, rail providers and tour operators. Originally developed by American Airlines with the assistance of IBM in 1960, the booking service became available for use by external travel agents in 1976 and became independent of the airline in March 2000.
Sabre is regarded as one of the ‘big three’ GDS systems, with a history that can be traced back to the 1960s. The company and network is based out of Southlake, Texas, in the United States, and it is estimated that around 60,000 travel agencies around the world currently utilize the system to sell travel products. Although Sabre technically has a smaller market share than one of its rivals, Amadeus, a larger percentage of bookings made using the Sabre system are hotel-related, unlike airline-based.
Sabre Corporation is the leading technology provider to the global travel industry. Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management

A safe deposit box is a small box, offer by the hotel to their customers for temporary use during their stay in which guest can store valuable objects. These facilities may be located behind the reception desk, or securely anchored within private guest rooms for privacy.

A search engine is a software program that helps people find the information they are looking for online using keywords or phrases and return results quickly—even with millions of websites online—by scanning the Internet continuously and indexing every page they find.
When a user enters a search term, the search engine receives a query and looks at the website page database, titles, contents and keywords it has indexed and uses algorithms (step-by-step operations) to produce a list of sites—with the most relevant websites at the top of the list and If there are several results, they are hierarchical according to their importance.
Hotels can use search engine optimization (SEO) to help search engines recognize their websites as highly relevant to particular searches. Popular search engines include Google, Bing and Yahoo.

Search engine rank (search rank) refers to the position a particular Web page holds in the results for a specific query in the search engine results pages (SERPs) for certain keyword phrases. There may be many pages of results depending on the query, so the search rank refers to the specific page on which a given Web page appears as well as its position on that page. Websites want their pages to have a high search rank for a relevant query, ideally the top position on the first page of results.
Web pages that rank well will appear at the top as one of the first few results on the first page. Relevant web pages that don’t rank as well may appear on the bottom of the first page, or on one of the search result’s subsequent pages.
A wide variety of factors determine a website’s ranking. These factors can be influenced by search engine optimization as well as by the purchase of ads. Links are listed from most relevant to least relevant, with the most relevant results being listed at the top of the first search results page.

Segmentation is the process of grouping hotel guests into categories based on their booking patterns and travel habits. By segmenting hotel guests into market groups, hoteliers are able to identify where their business is coming from, spot new business in the area, and drive hotel revenue.

A service charge is fixed percentage of the bill amount that is automatically added to guest bill in a restaurant and hotels to pay for the work of the person who comes and serves the guest during his stay at the hotel mostly it is round from 10-15 %.
Most hotels and restaurants charge a service fee that’s a percentage of the total bill, often in lieu of tipping. The delivery fee charged for ordering room service at a hotel or a gratuity applied to the bill for a large group dining at a restaurant are examples of service charges. If the total bill on an order is $250, and gratuity is stated to be 18%, then the total bill to be paid is $250 + (18% x $250) = $295.

Shoulder Date is the days or dates fall very close next to peak or high demand days. If a Friday and Saturday are forecasted to be sold out, and Sunday is not, then Sunday would be considered a shoulder date.
In PMS when creating a group block Shoulder Dates define a period of time before and/or after the block core dates where reservations can be made against the block during the reservation pickup process. Different rates can be set for the shoulder start period and the shoulder end period.

Shoulder Nights are the nights before and after the peak arrival dates. If you imagine the arrival pattern on a calendar the less busy days are to the left and to the right, forming so-called “shoulders.” If a Friday and Saturday are forecasted to be sold out, and Sunday is not, then Sunday would be considered a shoulder date.
To manage shoulder nights successfully revenue manager should recognize these patterns as early as possible and reflect it in the more aggressive pricing. These days should also be communicated to marketing team so the appropriate promotion strategy is deployed. against those dates.

Shoulder season is the median travel season or period between the peak and off-peak / low season that influences the business and revenue that comes into an entire area. Restaurants, area attractions, and local tourism booms in the area, and then simmers down. Hotels will see a drop in demand, as there is less overall business to be captured in the area during shoulder season where every part of the world has its own shoulder seasons; it varies from hotel to hotel based on the destination.

Single room, also known as a standard room, it is a room that is only guaranteed and/or permitted to accommodate one guest, these rooms are assigned to one person or a couple. It may have one or more beds, but the size of the bed depends on the hotel. A single room may be configured with different bed sizes, such as a twin-sized bed, double bed, or even a queen bed (though that would probably earn it the right to be called a double room).

Semi-Yieldable Rates is a qualified rate plans, often wholesale or corporate negotiated rates, that due to contractual terms can only be closed out when the Best Available Rate is not available for the same combination of room type and length of stay. Also known as last room available accounts.

Skimming Pricing is a strategy that sets rates above the highest rates of a hotel’s competitors. Hotels that charge the highest rates often achieve increased profitability. However, the hotel must clearly offer more value than its competition and consumer reviews must back this up for this strategy to be effective.

Source of Business provides a hotel with a breakdown of how or through which channel the business arrived to the hotel.
There are numerous ways a hotel can learn about the guest’s request for available space to make a future booking. A property receives reservation inquiries in a variety of ways such as in person, over a telephone, in a mail, via facsimile or telex, though the internet or online, social media (Facebook, Twitter, Instagram), mobile apps, instant messaging systems (WhatsApp, Telegram, Facebook Messenger) through a central reservation system, global distribution system , corporate  companies, groups, Embassies/consulate offices , Government Office and Ministries , Travel agent or through an inter sell …etc . Such a source of business tagged with each reservation record for statistical and forecasting purpose.

Special rate plans are the room price that has been discounted by percentage or amount based on the rack rate. This rate is applied for special guests, such as Long-term bookings /staying, Regular guests, who usually use hotel services, Guests from the hotel’s partner companies, or Family with kids (kids under 12 years old) …. etc.

Static Pricing or static rate is when a room rate doesn’t fluctuate based on market trends like occupancy or demand, but instead remain the same rate night after night opposite of the dynamic pricing with no charging one price for a product regardless of the time of year or the demand in the marketplace.
Static pricing occurs when a hotel keeps the same room rates over a period of time. Hotels that use static pricing techniques know their market well, have closely monitored year over year trends, and are confident in the occupancy and rate they will be able to capture.
A traditional static agreement is a paper contract between the hotel and in most cases corporate companies or travel agent that spells out a hotel’s seasons, rates and room allocation (number of rooms it wants to offer per season, per room category). Terms and conditions for the hotel are clearly spelled for cancellations, no shows, how to report bookings, term of the contract, what happens if either party breaches the agreement, etc. The rates are set by season, by room type typically for 12-18 months out. The reason the hotels would want to set pricing that far out is tour operators may publish printed collateral and marketing materials far in advance and the longer shelf life is more cost effective.

Stay Controls are duration rules and restrictions that may apply to arrival dates, departure dates, and minimum length of stay.

used to execute revenue management strategies through restrictions that are commonly used such as closing a hotel, room type or rate; establishing minimum lengths of stay, restricting arrival and/or departure dates, oversell limits, etc hence it can be used to restrict bookings based on a variety of factors and are generally based on a hotel’s booking patterns. Essentially, Stay Controls are restrictions that help a hotel realize higher revenue potential and to achieve full occupancy as possible, for as many weeks as possible during a calendar year, and into the future. There are many ways for a hotel to place controls on a visitor’s stay, but the specific controls that will be most useful for a given hotel will require an in-depth evaluation of that hotel’s booking patterns.
While Stay Controls allow a hotel to maximize revenue potential during seasons of lower demand, but should be implemented carefully as the goal of Stay Controls is to boost hotel revenue. By analyzing booking and stay patterns, a hotel can implement controls that minimize periods of low occupancy. In turn, these controls can help a revenue manager identify changes to a hotel’s reservation policy that will ultimately increase hotel profitability.
Here are some examples of Stay Controls:

• Minimum Length of Stay
  ● Maximum Length of Stay
  ● A Combination of Minimum and Maximum Length of Stay
  ● Dates Closed to Arrival (CTA)
  ● Dates Closed to Departure (CTD)
  ● Stay-Through Restrictions

A stay Pattern Management is a pattern that can cover the individual’s arrival day, number of nights’ stay, and departure day for the guest, stay pattern management can further enable a hotel to maximize revenues. A reservation’s stay pattern is the combination of arrival date and length of stay.
When maximizing revenue, you want to accept the optimal number of reservations for each stay pattern, not the greatest number of reservations for each individual day. The reason for this is because taking as many reservations as possible for one day could preclude a longer length of stay that includes that day, thus losing potential revenue for the surrounding days. This lost revenue may not be made up by shorter lengths of stays running through those surrounding days.
Example:

• Stay Pattern 1 Arrival 10th November, one-night stay
• Stay Pattern 2 Arrival 9th November, three-night stay
  If all available rooms on 10th November were sold to Stay Pattern 1 and then a request was received for Stay Pattern 2, the hotel would have to turn away Stay Pattern 2, thus losing potential revenue for 9th November and 11th.

Stop Sell is the act of stopping the hotel from being booked on distribution channels, used when a hotel is sold out during a certain time period or chooses not to sell any more rooms.

 Surrounding Pricing is a strategy that puts your most affordable room rates among the cheapest on the market. However, your most expensive room rates are then set closer to the same rates offered by your surrounding competitors. When using this strategy, a hotel must offer additional value through facilities, amenities, or services that competitors aren’t offering.

Travel Agent Commission Services or settlement (TACS) is a service in which commissions are centralized and paid to the appropriate individual travel agents.  Each hotel is sent a monthly itemized bill for the total dollar amount that was paid on behalf of that specific hotel.  The program may also service agent payments.
Travel agency commission settlement is an important steppingstone to building profitable relationships between hotels and travel agencies. Intermediaries, like travel agencies and OTAs, are an important part of a hotel’s distribution plan, and intermediary payments have grown to be the second largest expense of rooms departments. Along with a desirable hotel offering and tiered commissions, a streamlined commission payment process can help earn hotels a spot on an agency’s preferred supplier list.

Travel Management Companies (TMCs) and Consortia are large groups of Travel Agencies often driven by multinational companies that have joined together to form a Consortia such as American Express, Carlson Wagonlit, BCD Travel or HRG. Originally started to assist smaller Travel Agencies, Consortia have grown to become major players in the travel industry. By joining Consortia and TMCs, Travel Agencies can increase the effectiveness of marketing to their customers by offering competitive rates at hotels worldwide, where the consortia rate is negotiated between the hotels and travel agencies and is only available to contracted consortia.
By participating in Consortia and RFP Services, your RFP process becomes more streamlined and effective because you won’t spend valuable time responding to bids, worrying about missed deadlines, or dealing with incomplete RFPs.

Total Revenue per Available Room (TrevPAR) is a hotel KPI used as a benchmarking tool for all-inclusive hotels and resorts in most cases that gives a more holistic view of the total revenue generated from all departments and how effectively a hotel is using its space to generate revenue. It differs from RevPAR by accounting for more than the revenue generated by only room sold to measures the contribution of all profit centers in a hotel, expressed as a proportion of the total rooms available and see how a hotel is generating revenue regardless of whether or not rooms are sold.
Total Revenue per Available Room can provide a broader and more generic evaluation of a hotel’s performance. It provides a more comprehensive view of how well a hotel is generating revenue because it includes revenue generated from amenities from room service sales, restaurant sales, bar sales, and more. This bigger picture view allows for more effective pricing adjustments to be made which can be traditionally neglected in a standard performance equation such as RevPAR.
TrevPAR (Total Revenue per Available Room) Calculation
TRevPAR is calculated by dividing a hotel’s total revenue by the total number of available rooms in any given period. Total Revenue should include revenue from accommodations, breakfasts, bar sales, mini bar sales, spa sales, and any ancillary sales, where hotels should work to increase TRevPAR, because it implies that either average revenue or occupancy has increased, or in best case scenarios, both have increased, which is an ideal scenario for any hotel (it is usually measured and tracked either daily, monthly, quarterly, and yearly).
Formula: TREVPAR = Total Hotel Revenue ÷ Total Hotel Available Rooms
Example: Total Hotel Revenue = $3,500,000 and Total hotel Available Rooms = 15,000, your TRevPAR would be $233.33
TRevPAR = $3,500,000 (Total Revenue) / 15,000 (Total Available Rooms) = $233.33

Total Revenue Per Client (TrevPEC) is a hotel KPI that can be used to evaluate how much revenue is generated from each visiting customer/ guest to the hotel. It breaks down double and triple room occupancy, family and group bookings to provide more information on revenue per customer for those bookings, hence and since it accounts for these types of bookings, it is one of the more useful hotels KPIs for evaluating whether or not a hotel should offer family rooms or suites during specific demand periods to make strategic decisions that will help a hotel improve profitability. Understanding TRevPEC and comparing it with visitor demographics can help revenue managers identify market segments that are more profitable than others.
TrevPEC (Total Revenue per Client) Calculation
TRevPEC is calculated by dividing a hotel’s total revenue by its total number of guests and can be calculated for a selected various time period, depending on a hotel revenue manager’s preference, (it is usually measured and tracked either daily, monthly, quarterly, and yearly).
For this KPI, Total Revenue includes revenue from accommodations, breakfast sales, bar sales, spa sales, mini bar sales, and any other ancillary sales.
Formula: TRevPEC = Total Hotel Revenue ÷ Total Number of Guest
Example: Total Hotel Revenue = $3,500,000 and Total Number of Guest = 14,000, your TRevPEC would be $233.33
TRevPEC = $3,500,000 (Total Revenue) ÷ 14,000 (Total Number of Guest) = $250.00

Total Revenue per occupied room (TRevPOR) is a performance metric that measures the amount of total revenue generated by a hotel for a given period for every room occupied to determine how much profit a hotel earns when a customer enters the hotel.
TRevPOR takes into account optional services and items guests can purchase at the hotel, as well as any additional sales made during a stay including ancillary revenues such as room service, dry cleaning, and spa sales to show how successful a hotel is in selling more than just a room to guests.
Revenue per Occupied Room can be measured daily, weekly, monthly, or annually, where it is a useful KPI for evaluating hotel performance during seasonal periods of low demand. While seasonal trends can drive down other KPIs, TRevPOR prioritizes an evaluation of how much an average guest spends on hotel products and services. This is a departure from many other KPIs (like RevPAR) that look at the overall number of guests. The choice that a hotel makes largely depends on the types of insights that that hotel is seeking and it is differs from RevPAR because it accounts for all revenue a hotel earns when a room is occupied. It accounts for optional services guests can purchase at the hotel, as well as any additional sales made during a stay.
TRevPOR (Revenue per Occupied Room) Calculation
TRevPOR is calculated by dividing a hotel’s total revenue by the number of rooms actually sold / occupied to/by guests for a given time period. Total Revenue should account for all guest revenue from accommodations, breakfast, spa services, bar and mini bar sales, and any additional revenue.
Revenue per occupied room is useful for gauging how hotel management is performing. This is because the metric strips out the impact of seasonally influenced occupancy rates to show how much profit a hotelier is making from guests who stay at the hotel.
Formula: TRevPOR = Total Hotel Revenue ÷ (Total Hotel Occupied Rooms)
NB. Total Revenue = Room Revenue + Breakfast + Bar + Mini Bar + Spa + Any Additional Revenue
Example: Total Hotel Revenue is $100,000 and Total Hotel Occupied Rooms 250, your Total Revenue per Occupied Room would be $400
$100,000 ÷ 250 = $400

Taxes is charged in all over the hotels around the world, to travellers when they rent accommodations in a hotel, all guestroom suite rates and all F&B services are subject to taxes .
The price hotel provides to the guest at any of the distribution channels including the hotel website must include the base room rate and all taxes and fees required to book a stay and must be clearly disclosed on hotel final booking page also Taxes and fees must represent all mandatory charges collected by the hotel, regardless of when they’re due.
The taxes and fees hotel must disclose include but aren’t limited to: Occupancy Tax, County Tax, City Tax, Value Added Tax, Tourism Tax, Resort Fees, Registration Fees, Service Fees, Transfer Fees, Cleaning Fees ……etc.

Three Star Hotel is a middle-class hotel and moderately priced offers a balance between affordability and amenities. They are generally the mid-tier option of upscale hotel chains, focusing on style along with comfort. Think Hampton Inn, Hyatt Place, and Courtyard by Marriott Lancaster. Three-star hotels may not be super luxurious but a guest can expect to have their basic needs cared for along with bonus accessories to make their stay more enjoyable.
Rooms are often spacious with a couch or comfy chair, a desk, closet, phone, alarm clock, and flat-screen TV that features extended cable packages. These hotels can also offer on-site amenities, such as free Wi-Fi, a gym, swimming pool, and dining facilities for breakfast, room service, and may have dry-cleaning.
Three-star hotels located near restaurants and local attractions, including amusement parks, theaters, and stadiums. They are geared towards business travelers, so they are strategically placed near major cities. They also offer 24-hour front desk assistance, conference rooms, and room service to accommodate business needs.

A timeshare, also known as a vacation ownership, is a resort property that specializes in providing accommodations to owners who have purchased the right to stay in the resort during a set period of time, this ownership is usually in weekly increments. Timeshare resorts are often located in areas that are traditionally considered popular vacation destinations and are often very similar to a conventional hotel. In fact, timeshares typically offer the same level of amenities, attractions and features of conventional hotels and resorts.
Most shares today are with large corporations like Wyndham, Marriott, or even Disney. These hospitality brands offer owners a travel club membership style, providing flexibility and customization for vacations.
In simple terms, a timeshare is a resort unit that allows owners to have an increment of time in which they can use for vacations every year. They are usually a lifelong product, which owners can use for vacations every year. Essentially, when you become a timeshare owner, you are paying for a lifetime of vacations upfront, which can save you thousands of dollars over a lifetime of travel. Some other perks and benefits come with ownership, such as vacation exchange and loyalty programs. Families would buy a one-week increment at a specific resort, and even a specific unit, that they could use during that time every single year. With a fixed week timeshare, the week number never changes. Usually, weeks have a number that starts in the first week of January and continues through the last week of December. Depending on the resort or developer, the weeks will generally begin with a check-in date on Friday, Saturday, or Sunday.
Some benefits of a fixed-week share include not having to plan ahead to make reservations, and you have a guaranteed time every year. Moreover, you can rent your timeshare out fairly easily if you own a “valuable” week during a popular holiday or high season.

Total Revenue Performance, also known as gross revenue, is the amount of money your hotel business generates from selling hotel products or services during a fixed period, it is a process used to analyze and improve sales and marketing efforts using revenue as a focal point to provides valuable insights into hotel selling strategy, pricing, and business growth.
Total Revenue Performance is a data-driven methodology that considers KPIs that have a direct bearing on revenue generation to shed light on flaws and hitches in sales, marketing, and how the two departments interact, It is the intelligent calibration of demand across all revenue streams to meet overall business objectives. It is the ability to instantly and systematically decide which business to accept across multiple revenue streams at all times based on greatest overall value to the asset.

Tour operator is an organization or individual who actively manages and escorts tours and tour packages to FIT and group visitors. Develops, markets and operates group travel programs that provide a complete travel experience for one price and includes transportation (airline, rail, motorcoach, and/or ship), accommodations, sightseeing, selected meals and an escort. Tour operators market directly to the consumer, through travel agents and are beginning to be listed on computerized reservation systems, they create a package holiday by combining all elements such as hotel, airport transfers, activities, restaurants, tours and such like.
The Difference between a tour operator and a travel agent is that a tour operator makes the package and can sell direct to consumer. A travel agent sells the packages created to the consumer.

Transient guests are one of the major market segments an consist of individuals or groups that are occupying less than 10 rooms per night. Generally, they are Guests who book individually rather than with a group, walk-in guests, last minute or bookers or simply people that require a very short term stay in your hotel. They require very little in terms of services and predominantly are just interested in a clean room and somewhere to sleep.

A travel agency is a private retailer or public service that sell travel and tourism-related services to offer different kinds of travelling packages for each destination. (Such as (hotels, airlines, car rentals, cruise lines, railways, travel insurance, package tours) on behalf of principal suppliers of tourist products and services such as carriers, hotels, and tour operators for a commission between 10% to 15%.
Using a Travel Agent is beneficial for customers who plan multi-destination and/ or international trips. Booking through an agent saves time and ‘headaches. The experience and consultancy come from ‘one hand’ – the agent who combines all the travel components and services for the client/ traveler. Often agents also dispose of unpublished deals and activities which is beneficial for the traveler.

Travel Product Refers to any product or service that is bought by or sold to consumers of trade including accommodations, attractions, events, restaurants, transportation, etc, it is the combination of accommodation, food and beverage, transportation, entertainment, and many other goods and services that are used throughout the trip.

Two Star Hotel offers the basic necessities of a bed and bathroom in each room and may offer some limited amenities, like a television, phone, and closet. Some examples of two-star hotels include Sleep Inn & Suites, Econo Lodge Inn & Suites, and Comfort Inn. There may also be 24-hour front desk services, along with daily housekeeping and a self-serve dining option at the hotel, such as a continental breakfast.
Two-star hotels are often part of a larger chain and can be located in various cities. These hotels are made for travelers passing through and will be located directly off major expressway exits. They may even offer reward points as part of loyalty programs for those who travel often.

Unconstrained demand refers to the number of rooms that could be sold if there were no constraints such as the hotel’s capacity or restrictions on bookings. Unconstrained demand provides a complete picture of all the possible demand, not just the limited demand you accept. Also known as “true demand.”
unconstrained demand will help you calculate your Last Room Value for certain dates, and possible length of stay restrictions that may apply. Once peak periods are detected, you can start regretting low paying business. Historical data capture will help to calculate potential unconstrained demand. It is possible to develop hotel revenue management manual tools that would help to identify those periods, such as with excel.

Unqualified Rates are a kind of rates available by the hotel to guests who do not have an agreed and or contracted rate and that have no booking restrictions or conditions attached.

Virtual credit cards are temporary digital cards that are available online as one time use and don’t have a physical form with validity date and randomly generated 16-digit number associated with the credit card of your guests. CVV is used by travel agent and OTA’s such as Booking.com, Expedia, and Agoda already use VCC’s, to maintain the safety of the bookers’ credit card details. where hotels normally receive VCC details via the extranet. Customers can use them to carry out online transactions. It’s similar to normal conventional credit or debit cards with a card number, CVV, and validity dates. However, all these details are only available online. It guaranteed pay-outs from travel agent. They also save you time since hotels don’t need to pre-authorise or validate them.

A VIP guest is a very important person, who gets special privileges, treatment and received personalized service. Generally, it is consisting of the guests who have a prolonged history with the hotel, through a loyalty program and also those guests who give the hotel outstanding financial profit, this type of guest has a high social status, prestige, influence and have a good reputation.

In general, there should be some kind of preparation for a VIP guest arrival at the hotel begins at the time of the reservation process where all the departments must coordinate with each other efficiently and attentively to manage and control an effectual VIP and VIP procedure, where General Manager, Director of Rooms, Director of Operations or Director of Sales are those who usually approve the VIP and VVIP status of the guest. Generally, all these VIP guests are been pre-registered; the person who approves the VIP and VIP status also presumes accountability for the guest’s credit status.

The types of VIP guest might include, Board of Directors, Owners, Chairman, Managing Director, CEO, Celebrities, Influencer, Sportsperson, Loyalty members, Political Background, Head of state or countries, Senior Government officials

Vacancy is the number of unoccupied rooms that are available for booking. Hotels typically have a set number of rooms, and when there are no guests occupying those rooms, they are considered to be vacant and are available for sale.
In most case scenario hotels often strive for a certain level of vacancy in order to maximize their profits. While a completely full hotel may seem like the ideal scenario, it can actually lead to lost revenue due to price ceilings and ineffective yield management. On the other hand, a completely empty hotel is also not ideal as it means lost revenue for the hotel.
Hotel vacancy can be calculated by dividing the number of vacant rooms by the total number of available rooms. For example, if a hotel has 100 rooms and 20 of them are vacant, the vacancy rate would be 20%.

The difference between the final occupancy of a hotel at the end of a particular day and the maximum occupancy based on the business on the books from the start of the day.  The revenue wash is contributed by those guests who do not show up for the booked reservations, last minute cancellations, group wash, early departures, amendment of bookings (when length of stay is shortened) based upon historical data and experience.

A wholesaler or a merchant global distribution system (GDS), or bed banks in the travel industry is a middleman between a travel supplier (hotel) and an OTA/travel agent. It sources the hotel room nights in bulk, packages them, negotiates rates, and then sells them to OTAs and travel agents meaning purchases individual travel components at a discount based upon volume, repackages the components and sells them to a consumer on a retail basis.

Hotels offer a wholesaler rate that is often 20 to 30 percent or more off the retail rate.

Yield management is a pricing strategy or the price optimization aspect of a revenue management strategy used in the hotel industry in order to understand, anticipate and thereby influence consumer behavior with the overall goal of achieving maximum revenue and profit.

Set of strategies that help realize optimal revenues for capacity-constrained resources. The core concept of yield management is to provide the right service to the right customer at the right time for the right price by understanding, anticipating and influencing consumer behavior.

Seeing as hotels have a fixed inventory supply, it’s important to be able to get the most profit out of each room you sell. This variable pricing is a part of revenue management that draws on historical data to make predictions about future demand in order to define rates. Hotels can thereby adjust their prices to meet this demand that will help optimize profitability.

Unlike hotel revenue management, managing yield is about looking at the revenue generated through occupancy and selling price. The fundamental element of this pricing strategy is that depending on demand, the time of year, the number of rooms already sold and other external factors, you can determine at what price you need to sell the rooms in order to maximize revenue.

Year to date (YTD) refers to the duration or period starting on the first day of the current fiscal or calendar year and ending on the current day. YTD data can be used to compare hotel performance to peers or competitors or to analyze business trends over time.

Zero-based budgeting is a method of budgeting in which all expenses must be justified and approved for each new period, which required each manager to justify his entire budget in detail from scratch. This might be used in hotels where there has been a global pandemic, or a long-term interruption to the industry and where historical data cannot be relied upon to predict future results, also the ZBB can be used during the midmonth forecast if there are some factors might affect the original budget/forecast either increase of decrees the figures i.e.  If the hotel forecast was for 75% occupancy and a rate of $150 and the projection on the 15th of the month is 70% and $145, hotel need to adjust the ordering and expenses to compensate for the drop in revenues.

Hoteliers also can apply the Zero-Base Budgeting to any type of cost: capital expenditures; operating expenses; sales, general, and administrative costs; marketing costs; variable distribution; or cost of goods sold.

Zulu Time Zone (Z) has no offset from Coordinated Universal Time (UTC). Zulu Time Zone is often used in aviation and the military as another name for UTC +0. Zulu time, also known as Greenwich Mean Time (GMT), is the time zone used by the Royal Observatory in Greenwich, England. It is the basis for all other time zones in the world.