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Glossary of Terms

The myallocator Glossary of Hotel Terms has been developed to give our hoteliers quick access to definitions of terms and concepts used commonly in technology and travel markets.

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There are currently 78 names in this directory
Actual Share
The percentage of the room nights or revenue that a property captures during a particular time frame compared to the properties competitive set. To calculate take total room nights or revenue sold at the hotel by total room nights or revenue sold within the competitive set inclusive of the subject hotel.

Availability
The number of open rooms for a specific type of accommodation and set of dates.

Average Daily Rate (ADR)
Calculated by dividing actual daily revenue by the total number of rooms sold.

Average Length of Stay (ALOS)
Calculated by dividing the number of room nights by the number of bookings.

Best Available Rate (BAR)
The lowest rate bookable by all guests.

Best Rate Guarantee ( BRG)
The promise that hotels or OTAs will the best rates on their own site as compared to any other side for the same product.

Central Reservation System (CRS)
An application used to manage a hotel’s distribution and hotel room bookings. Typically will be used to reach guests via multiple distribution channels such as travel agencies, online travel agencies (such as Expedia, Orbitz, Travelocity, Priceline and others), direct to the hotel website, and telephone (either via call center, direct to property or both).

Channel Management
The application used to control the allocation of hotel inventory and rates across all distribution channels including website, third parties, and the GDS.

Close to Departure
A restriction where a hotel can restrict any check outs on a specific day.

Closed to Arrival
A inventory technique that prevents reservations from arriving on a date. Reservations can stay through a date.

Commission
That payment that a travel agent receives from a supplier for selling transportation, accommodation or other services.

Customer
Someone who is purchasing product(s) and/or service(s) from a Hotel. May also include an agent acting on the Customer’s behalf.

Demand Based Pricing
Applying strategies to move rates based upon demand within the marketplace and what the market will bear.

Demand Generators
Strategies or programs (think social media, promos) that attract or drive demand to a specific hotel.

Displacement Analysis
Analyzing group business based upon the total value of the business versus what transient business 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.

Distribution Strategy
Determining when and through what channels to sell rooms based upon the cost of acquisition of the individual channel. Hotels can maximize their profitability by looking at total costs associated to each strategy.

Dynamic Packaging
The ability to create packages based upon the components the customer selects.

Early Bird
A promotion only available for advanced bookings.

Electronic Distribution (ED)
Encompasses all the electronic channels of distribution, which includes GDS, Online Travel Agencies and Web Booking Engines. These distribution channels can be accessed through the Internet, an intranet or through an interfaced connection.

Fair Market Share
A hotels individual percentage of market share they should reasonably expect to capture all things being equal based upon their competitive set. 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).

Fences
Rate rules that may include restrictions such as advance booking cutoffs or non-refundable payments.

Flash Sales
A promotional sale by a hotel that is available for purchase by the customers for a limited time only

Folio
A Folio is a collection of Charges and Payments incurred or made by a Guest or corporate account, or in-house account, etc

Global Distribution System (GDS)
Sabre, Galileo, Amadeus and Worldspan offer a comprehensive travel shopping and reservation platform to travel agents worldwide. Agents use one of these systems to book airline, car, hotel and other travel arrangements for their customers. OTAs also use one or more GDS to power some or all of their content on their site.

Gross Operating Profit Per Available Room (GOPPAR)
Calculated as room revenue minus expenses divided by total rooms available. It is the new RevPAR for owners.

Guest
A Guest is a person that is currently registered to stay at a property and/or has stayed at a property.

Hotel / Hostel
An individual property, or an enterprise that owns, manages, or franchises one or more properties.

Hotel Clerk
A staff member employed by the Hotel or the Hotel’s agent, who interacts with the Customer

Housekeeping Asset
A Housekeeping Asset is a consumable item used to maintain a Room-Type such as toilet paper, cleaners, soaps, shampoo, etc.

Housekeeping Request
A Housekeeping Request is a request for housekeeping services to be performed.

Internet Booking Engine (IBE)
Same as Web Booking Engine (WBE)

Internet Distribution System (IDS)
Distribution using the Internet, World Wide Web, Intranets, extranets and online services.

Inventory (relative to hotel distribution)
The rooms available that the hotel has to distribute/sell across all channels.

Last Room Availability
Strategy to allow travel sources to book the last room a hotel has available at a contracted rate.

Market Intelligence
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.

Markup
The difference between the hotel’s selling and the merchant’s price offered to the consumer.

Maximum Length of Stay
A room inventory strategy that limits the number of nights a reservation can stay when arriving on a certain date.

Minimum Length of Stay
A room inventory strategy that requires a reservation to meet or exceed a certain length of stay (i.e 2 or more) in order to complete a reservation.

Night Audit
A Night Audit is a reconciliation of the previous 24 hours of transactions.

Occupancy
"Fill" measure of a hotel calculated by dividing the total number of rooms occupied by the total number of rooms available times 100, e.g. 75% occupancy.

Online Travel Agencies (OTA)
Websites offering comprehensive travel shopping and Reservations Solutions to consumers. Examples include Expedia, Orbitz, HostelWorld, Booking, and many local and regional sites.

Open Travel Alliance (OTA)
A trade group developing a common standard for the exchange of information in the travel industry.

Overbooking
Practice by hotels of confirming reservations beyond their capacity (100% occupancy) in expectation of cancellations, no-shows or in error.

Packaging
A simple strategy that involves offering several products for sale together. For hotels, this could be through the booking engine for upsells, services, event tickets, or other amenities such as Internet access, meal plans, parking, etc. The price may be bundled together so there is opacity to the individual prices of the products.

Payment
A Payment represents remuneration made by the Guest against a specific Folio. A Payment can be in any form such as: Credit-Card Corporate-Account Cash Promotion Loyalty Redemption Purchase Order Tour voucher

Payment Card
Any physical credit or debit card, or electronic representation thereof, that is processed through the electronic payment industry network.

Payment Card Data
The information on a Payment Card that is required for the processing of a transaction.

Payment Service
A party that can authorize and settle payment-card transactions.

Payment Terminal
A device capable of capturing and encrypting Payment Card data from the Payment Card presented by the Customer (either by swipe or keypad entry or both).

Preferred Placement
Enhanced visibility for hotels on travel agent terminals through the travel channels.

Price Match Guarantee (PMG)
The promise that hotels or OTAs will offer the lowest rates or match the lowest rate available across any channel for the same product.

Product
A Product is a tangible item that can be inventoried and can be offered to a Guest.

Property
A Property is a location owned or operated by the hotel management company.

Property Management System (PMS)
An application used by the hotel to control onsite property activities such as check in/out, folios, guest profiles, room status, requests, etc.

Rate Parity
The strategy that all distribution channels of a hotel should reflect the same rate for the same conditions for a particular room type. Rate parity is often used to gain customer loyalty and encourages guests to book directly with the hotel.

Receivable
A Receivable is an amount of money that the hotel must collect. A Receivable may be a Folio or an Invoice.

Reservation
An arrangement by which accommodations are secured in advance, as in a hotel or on an airplane.

Revenue Management System (RMS)
A software application hotels used to control the supply and price of their inventory in order to achieve maximum revenue or profit, by managing availability, room types, stay patterns (future and historical), etc.

Revenue Per Available Room (RevPAR)
Calculated by taking the daily room revenue of a hotel and dividing it by the total rooms available at that hotel.

Revenue Per Occupied Room (RevPOR)
Calculated by taking the total daily revenue (including ancillary revenues) and dividing it by the total number of occupied rooms at the hotel.

Room
A Room is an inventoried physical space in the hotel that can be rented by a Guest. A Room is a unit and can not be subdivided for inventory purposes.

Room Block
A Room Block is a group of rooms. Room Blocks may be created to organize rooms in various configurations to aid in planning and sales or other management tasks. Examples of Room Blocks might include: associating rooms with a single fixed price, a single Guest, a Channel, or a single team of Staff Members that manage or maintain the rooms in the block.

Room Inventory
The set of rooms available for stays for a particular date or range of dates.

Room Type
A Room Type represents some form of categorization, set, or collection of rooms with some common element at the hotel that must be managed for marketing purposes within the hotel. For example, a Room-Type might be a suite or a single Room with a double bed, poolside or ocean-side. A Room can belong to multiple Room Types.

Service
A Service is an intangible benefit that can be offered to a Guest.

Service Contract
A Service Contract is a legally binding exchange of services promised and agreements between the hotel and service provider that the law will enforce. Examples of services are: Telephone service Cable TV and movie service Temporary or other non-employee personnel Alarm and control systems

Service Request
A request for guest services.

Single Image Inventory
Consumers should finds the same rates at the same time for the same accommodations, regardless of the booking channel they choose; technology capability that supports/enables this strategy.

Source of Business
Provides a hotel with a breakdown of how the business arrived at the hotel or through which channel the business arrived.

Static Pricing
Charging one price for a product regardless of the time of year or the demand in the marketplace.

Stay
The period of time that a customer is a guest of a hotel.

Stay Record
A record of a guests previous visit to a hotel.

Total Revenue Per Available Room (TrevPAR)
Calculated by taking the total revenue of a property (not just room revenue) and dividing by the total number of rooms available.

Unconstrained Demand
The true demand for a for a hotel regardless of any capacity limitations.

Vacancy
One or more rooms available to accommodate guests.

Work Order
A Work Order is a request maintenance work to be performed.

Work Queue
A Work Queue is a set of Tasks or Work Orders that must be performed by a specific set of Staff Members.

Yield Management
Hotel Yield Management is the process of understanding, anticipating and reacting to consumer behavior to maximize revenue. Yield Management is also referred to as Revenue Management.