While they offer hotels broad exposure, they often come with high commission fees. Occupancy Rate is the percentage of available rooms that are occupied during a specific period. Negotiated Rate Business (NRB) involves corporate clients or groups booking rooms at a pre-negotiated rate, providing consistent business and occupancy for the hotel. Night Audit is the nightly process of reconciling and balancing the day’s financial transactions at a hotel. It ensures that all guest charges and payments are accurately recorded, updating the system for the next day’s operations. MICE is an acronym that stands for Meetings, Incentives, Conferences, and Exhibitions.

It is concluded that traditional management accounting is very much alive and well. Total Revenue Per Available Room (TrevPAR) is a performance metric used by hotels to measure the total revenue generated per available room. TrevPAR provides a comprehensive view of a hotel’s revenue performance, considering all revenue streams and occupancy levels.

Findings – An ABC approach can be applied to support kitchens and total cost (ABC) can be estimated. This approach allowed the casino to eliminate traditional allocation methods based solely on food cost. Research limitations/implications – ABC was shown to be a powerful technique that can be applied effectively in a support kitchen of a casino. Practical implications – The use of ABC techniques confirmed that the ABC process is a useful tool in an effort to abolish allocations and can be applied to the remaining support kitchens. It measures a hotel’s total guest room revenue divided by the total number of available rooms for a given period.

The CRS is vital for managing bookings from the hotel’s website, OTAs, and GDSs. Channel Management involves overseeing the distribution of hotel rooms across various platforms, such as the hotel’s website, OTAs, and GDS. Effective channel management ensures consistent pricing, availability, and maximizes revenue potential.

As a hotel owner or manager, having a firm grasp of the hotel vocabulary and shorthand specific to hospitality is crucial for seamless communication with your staff and partners. The correct hospitality lingo helps maximize operational efficiency, increase guest satisfaction, and boost your bottom line. Today, our copy will not be the same usual piece – talking about how to adopt the right hospitality technology solutions, how they help you, and how to serve guests better. Online Travel Agencies (OTAs) are platforms that allow travelers to book accommodations and other travel services online.

• These hotels often cater to niche markets, offering distinctive experiences tailored to specific guest preferences.
• This refers to the actual percentage of room nights or revenue that a hotel captures during a specified time frame.
• Technology or equipment that is owned by the hotel and used in daily operations, such as computers, tablets, and mobile devices.

Channel manager

This may include shampoos or conditioners provided in the bathroom or free parking, free Wi-Fi, etc. Limited-time offers with deep discounts, typically used to drive short-term bookings and boost occupancy during low-demand periods. The percentage of a hotel’s meeting and event spaces that are occupied over a given period. This is hotel terminology for when a guest’s stay is more than five consecutive days. Depending on the hotel’s policy, an extended stay can sometimes mean that the guest is charged on a weekly basis rather than a nightly one.

Unleashing the Power of 7 Untapped Trends to Fuel Holiday Travel Growth by 30%

A Package is a bundled offering that combines multiple elements, such as accommodation, meals, activities, and other services, into a single price. Packages are often designed to provide added value and convenience for guests, encouraging longer stays and increasing revenue. Minimum Length of Stay (MLOS) is a policy requiring guests to book a room for a certain minimum number of nights during high-demand periods to maximize occupancy and revenue. Full-service hotels are properties that offer a wide range of amenities and services to cater to guests’ needs. They typically have multiple F&B outlets, meeting and event facilities, recreational amenities, and other services. Double Occupancy (DBL) refers to the practice of accommodating two guests in a room designed for double occupancy.

Average length of stay (ALOS)

It’s key performance indicator (KPI) used by hotels to calculate the average revenue earned per occupied room in a given time period. Revenue Per Occupied Room (RevPOR) measures the revenue generated per occupied room, including all income from room rates, F&B, and other services. It helps hotels assess how effectively they are maximizing revenue abc full form in hotel industry per guest. Revenue Per Available Room (RevPAR) is a performance metric used by hotels to measure the revenue generated per available room. RevPAR is calculated by multiplying the occupancy rate by the average daily rate (ADR). Per Person, Per Night (PPPN) is a pricing model used by hotels to calculate rates based on the number of guests staying in a room.

These three issues are paramount in any treatment, in that the loss (or loss of control of) any one of these items will rapidly lead to the patient’s death. F&B stands for Food and Beverage, referencing all dining facilities and operations within a hotel, including restaurants, bars, banquets, room service, and kitchens. Turn-down Service is a hotel service provided in the evening to prepare the guest room for the night and ensure a comfortable and welcoming environment.

If you think we’ve missed any common terms, do let us know and we’ll happily add them to this evergrowing list. The standard published rate for a room in a hotel or resort before any discounts are applied. A function on a hotel CRS (Central Reservation System) that controls room inventory is Sell Through. Room closure is physically closing a room for any reason other than reservation. This is the rate at which the hotel would be better off leaving the room vacant than selling it.

The process of creating personalised travel packages that combine hotel rooms, flights, car rentals, and other services based on guest preferences. If you’re stepping up to manage a property or own and operate one yourself, you may want to start familiarising yourself with the hotel management terminology below. A software system that maintains a complete and authoritative record of transactions, typically used to store guest details, bookings, and financial records.

It refers to the segment of the hospitality industry that caters to corporate events, including business meetings, incentive trips, conferences, and trade shows. Inventory refers to the total number of rooms a hotel has available for booking. Managing inventory effectively is crucial for maximizing occupancy and revenue. An Independent Hotel operates without affiliation to a major hotel chain or brand, allowing for a unique identity and operational freedom. These hotels often cater to niche markets, offering distinctive experiences tailored to specific guest preferences. A Folio is an itemized statement of all charges and payments made by a guest during their stay.

These distribution channels can be accessed through the Internet, an intranet or through an interfaced connection. It is the formula used to calculate the operating cost per room occupied, i.e. whether the operating cost of rooms sold is profitable for the hotel or not. A set of policies or rules set down by a hotel to be followed in lieu of cancellation of a booking or reservation of any service.

Ensuring that the same room rate is available across all distribution channels, including the hotel’s website, OTAs, and travel agents. An application that is embedded in a hotel’s website that allows guests to make direct bookings online. A key performance metric that calculates the revenue generated per available room, taking both occupancy and average daily rate into account. ADR stands for Average Daily Rate, the average rental revenue earned for an occupied room per day. House Count refers to the total number of guests staying at a hotel at a specific point in time.