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Hotel Glossary

Learn the Hotel Industry

Understand the key concepts, metrics, and technology that drive modern hotel operations. From RevPAR to PMS - everything you need to know.

30
Terms Explained
5
Categories
4
Languages
Metrics

Metrics

Key performance indicators for measuring hotel success

RevPAR

Revenue Per Available Room - a key performance metric that measures a hotel's ability to fill rooms at profitable rates.
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ADR

Average Daily Rate - the average rental income per paid occupied room in a given time period.
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Occupancy Rate

The percentage of available rooms that are sold during a specific time period.
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GOPPAR

Gross Operating Profit Per Available Room - a profitability metric that measures how much actual profit each available room generates.
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TRevPAR

Total Revenue Per Available Room - a metric that includes all hotel revenue sources, not just room revenue, per available room.
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Average Length of Stay

The average number of nights guests stay at a hotel, calculated across all bookings in a given period.
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NPS

Net Promoter Score - a metric measuring guest loyalty by asking how likely they are to recommend your hotel on a 0-10 scale.
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Technology

Technology

Software tools that power modern hotel operations

PMS

Property Management System - the central software platform that manages a hotel's core operations including reservations, check-in/out, and billing.
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Channel Manager

Software that synchronizes a hotel's rates, availability, and inventory across multiple booking channels in real-time.
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Booking Engine

Software embedded on a hotel's website that enables guests to check availability, view rates, and make direct reservations online.
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CRM

Customer Relationship Management - software that helps hotels collect, organize, and leverage guest data to build relationships and drive repeat bookings.
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RMS

Revenue Management System - software that uses data analytics and algorithms to optimize hotel pricing and inventory allocation for maximum revenue.
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Contactless Check-in

Technology that allows hotel guests to complete the check-in process digitally via their smartphone or a kiosk, bypassing the traditional front desk.
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Distribution

Distribution

Channels and platforms for selling hotel rooms

OTA

Online Travel Agency - third-party websites where travelers can search, compare, and book hotel accommodations.
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Direct Booking

Reservations made directly with the hotel through its website, phone, or email - without third-party intermediaries.
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Rate Parity

The practice of maintaining consistent room rates across all distribution channels, including OTAs and direct booking.
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Metasearch

Platforms that aggregate and compare hotel prices from multiple booking sources, allowing travelers to find the best deal.
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GDS

A worldwide computerized reservation network used by travel agents and corporations to book hotel rooms, flights, and other travel products.
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Wholesale Rate

Discounted rates offered to intermediaries such as tour operators and travel agencies for packaging and resale to end consumers.
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Best Available Rate (BAR)

The lowest unrestricted rate available to the general public for a specific date, room type, and occupancy - the baseline for hotel pricing.
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Revenue

Revenue

Strategies and tactics for increasing hotel revenue

Upselling

The practice of encouraging guests to purchase a higher-tier room or additional services beyond their original booking.
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Dynamic Pricing

A strategy of adjusting room rates in real-time based on demand, competition, and market conditions to maximize revenue.
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Ancillary Revenue

Additional revenue generated beyond core room sales, including spa, food & beverage, parking, activities, and other guest services.
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Total Revenue Management

A holistic approach to optimizing ALL revenue streams across a hotel, not just room revenue.
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Demand Forecasting

The practice of using historical data, market intelligence, and analytics to predict future booking demand for a hotel.
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Operations

Operations

Concepts for day-to-day hotel operations and guest service

Guest Experience

The sum of all interactions and touchpoints a guest has with a hotel, from booking to post-stay.
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Yield Management

A pricing strategy that adjusts room rates based on predicted demand to maximize total revenue.
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Overbooking

The practice of accepting more reservations than available rooms to compensate for expected cancellations and no-shows.
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Night Audit

The end-of-day accounting procedure that reconciles all hotel transactions and rolls the business date forward.
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Housekeeping Management

The coordination of room cleaning, maintenance, and turnover operations to ensure rooms are guest-ready on time.
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Hotel Glossary - Learn Hotel Industry Terms & Metrics