Basic Concepts Flashcards
ADR (Average Daily Rate)
It is a KPI to calculate the average price or rate for each hotel room sold for a specific day.
BRG (Best Rate Guarantee)
The hotel makes a promise that the room prices found on their website are the best rates compared to other any other sites.
Booking Curve
A Booking Curve is a tool that can visually show bookings over a certain period of time. It includes data like room pickup, bookings, and availability.
Booking
Booking is an act of reserving an accommodation, a table, a seat, a flight, a trip etc. in advance.
BAR (Best Available Rate)
BAR stands for Best Available Rate which is the lowest rate of the day that is available for guests to book. The BAR rates are available to the general public, does not require pre-payment and does not impose cancellation or change penalties and/or fees, other than those imposed as a result of a hotel property’s normal cancellation policy.
CTD (Closed to Departure)
CTD stands for Closed to Departure. It is a specific set of days guests cannot make their reservation for with this date as check-out.
CTA (Closed to Arrival)
CTA stands for Closed to Arrival. It is a yield tool used to close days our from reservations arriving on a particular day.
CRS (Central Reservations System)
CRS stands for: Central Reservations System. It is a computerized reservation software used to maintain the hotel information, room inventory and rates, to manage the reservation and process. A CRS provides hotel room rates and availability for many different distribution channels such as the GDS, IBE, OTA, 3rd party websites etc.
Comp Set - Competitive Set
A Competitive Set (or Compset) is a group of hotels that are seen as direct competitors to your own hotel.
Channel Management
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.
Forecast
Any hotel seeking to maximise profits, should look ahead and try to predict a future situation. One way to do this in an organised manner, is to create something called a Forecast. Forecasting can be done at any time of year, by any kind of establishment in the hospitality sector (not only large hotels but also small, independent hotels) across the world.
GOPPAR
GOPPAR stands for: Gross Operating Profit Per Available Room
It is one of the most effective ways to look at your hotel´s performance and make adjustments that impact the best interests to achieve the hotel´s goals.
KPI
KPI is an acronym for: Key Performance Indicator
KPI includes a set or ratios and formulas that help calculate and indicate the performance and progress of a hotel accordingly to their plans and actions.
LOS
LOS stands for Length of Stay. Figure derived by dividing the number of room nights by the number of bookings.
When it comes to revenue management, LOS is an important criteria. It can help enormously with the organising and optimisation of occupancy within a hotel.
MinLOS - Minimum Length of Stay
At hotels, the number of nights a guest can stay is not necessarily always up to the paying customer, even if they have lots of money to spend on both rooms and in-house serves, such as food, beverages and recreational activities! Often, a hotel will seek to control the number of nights an individual, couple, family or group book in for, for various reasons.
MaxLos - Maximum Length of Stay
At a hotel, sometimes the number of nights an individual guest, couple or family can stay has to be limited, even if the hotel is intensely focused upon maximising revenue! This can apply to a group booking, too, particularly if arrival is planned for a certain date and where a group booking discount has been offered and availed of.
NREVPAR
NREVPAR stands for: Net Revenue Per Available Room
NREVPAR metric is similar to RevPAR, except that it factors in the net revenues (meaning that it accounts for distribution costs, transaction fees and travel agency commissions).
No Show
If a guest fails to arrive on a certain date to fulfil a booking (as all so often happens!) and does not cancel; that does not necessarily mean the hotel will lose money. No. Hotels can cover themselves for this eventuality by integrating into their pricing structure something called a No-Show fee. That’s right, in the Hospitality Industry, a person who does not arrive where and when they should at a hotel or motel, and makes no explanatory contact, is called a No-Show.
Overbooking
Sometimes it can be necessary for a hotel to sell more rooms than it actually has available. To those unfamiliar with the internal workings of the Hospitality Industry, which is always influenced by and somewhat vulnerable to the vicissitudes of the global economic climate, that may sounds strange. But experienced hoteliers will tell you that selling rooms/spaces that you don’t have – Overbooking – can sometimes be the only way to protect a hotel from diminished revenue due to unexpected cancellations, no-shows or booking errors.
OTA
OTA stands for: Online Travel Agency.
OTAs are online companies who’s websites allow consumers to book various travel related services directly via Internet.
They are 3rd party agents reselling trips, hotels, cars, flights, vacation packages etc. provided / organised by others.
PROFPAR
PROFPAR stands for: Profit Per Available Room
PROFPAR is a KPI calculation of profit earnings for each room available in the hotel. PROFPAR is based on operating profit, which accounts for movements in both revenues and expenses.
PMS
PMS stands for: Property Management System.
It is a local hotel administration system used for reservation, availability and occupancy management, check-in/out, images, guest profiles, report generation etc. This application is used in-house (in an individual hotel) to control the onsite property activities.
REVPOR
RevPOR stands for: Revenue Per Occupied Room
RevPOR, unlike RevPAR, considers revenue per occupied room which gives you a better understanding of how much profit you make from the guests who actually stay at your property.
REVPAR
REVPAR stands for: Revenue Per Available Room
RevPar is a very classic KPI and regarded as one of the most important financial calculations for any hotel to see how much revenue they have made within a certain period of time.
