Glossary

A

ADR (Average Daily Rate) Average daily rate. A KPI used to calculate the average rate of each hotel room sold on a specific day, month, or year.

Displacement Analysis Analysis of the business potential brought by a group, comparing the total value of that booking with the individual guest revenue that would be lost if the group were accepted.

B

B2B (Business to Business) A business model in which one company sells products or services to another company.

B2C (Business to Customer) A business model in which a company sells products or services directly to end consumers.

Beach Resort A lodging property with access to a private beach, offering a wide range of services and amenities for guests.

Bizcation A term that combines "business" and "vacation," describing trips that combine professional commitments and leisure.

Booking Curve A visual analysis that shows how bookings materialize over a given period.

Booking Engine A system that allows guests to search for and book accommodations and other travel products directly online.

Booking Window The period of time between the date a booking is made and the arrival date at the hotel. Also called Lead Time.

Boutique Hotel A small, intimate hotel with elegant design decor and personalized service, distinguishing itself from the large hotel chains.

Business Mix The combination of different market segments that occupy a hotel during a given period.

C

Direct Channels Sales made without intermediaries, such as phone, email, live chat, or the hotel's official website.

Close Out A situation in which the hotel closes availability for selling rooms on certain dates.

Chain Code A two-character code that identifies hotel chains within a GDS.

CompSet A group of hotels considered direct competitors of a hotel. Also known as the competitive set.

Complimentary Services or products offered to the customer at no additional cost.

CPOR (Cost Per Occupied Room) A formula that calculates the average cost per occupied room.

CRO (Central Reservations Office) Central Reservations Office. A system that allows agents to receive and process booking requests by phone.

CRS (Central Reservations System) Central Reservations System. Software used to manage hotel information, such as rates and room inventory.

Fixed Costs Costs that remain relatively constant regardless of variations in sales or production volume.

D

DBA (Days Before Arrival) Days before arrival. The number of days remaining before the expected arrival date of guests.

Demand The level of consumer interest in and need for a product or service at a given moment.

Unconstrained Demand The number of rooms the hotel could sell if there were no inventory limitations.

Design Hotel A hotel recognized for its distinctive visual concept, with a focus on architecture, interior design, and aesthetics.

Availability The number of rooms open for sale at a hotel.

Electronic Distribution The process of distributing hotel inventory and rates through digital channels.

Average Length of Stay The average number of nights guests stay at the hotel during a period.

E

EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization. A KPI used to measure a company's operating profitability.

Eco Hotel A hotel that adopts sustainable practices in its services and operations.

E-commerce Commercial transactions carried out over the internet.

BAR Strategy (Best Available Rate) A revenue management strategy based on the lowest available rate at the hotel, from which the other rates are defined.

Distribution Strategy Defining when and through which channels the hotel will sell its inventory, taking into account the costs of each channel.

Pricing Strategy The process of setting the value charged for a product or service, based on market analysis, costs, and revenue goals.

Extranet A website that allows controlled access to authorized partners, suppliers, or clients.

F

Fair Market Share An indicator that shows the hotel's performance relative to its direct competitors. Calculated by dividing the hotel's number of rooms by the total number of rooms in the CompSet.

Forecast A prediction of future demand based on historical data, booking pace, and market behavior. Used to plan rates and inventory more accurately.

Full Service Hotel A hotel that offers a wide range of services included in the rate, such as a restaurant, spa, and concierge.

G

GDS (Global Distribution System) Global Distribution System. A computerized network that connects hotels to travel agents, allowing real-time availability searches and bookings.

Revenue Generation The process of creating sales of products and services to increase the hotel's revenue.

Asset Management A structured process of developing, operating, maintaining, and disposing of a company's resources efficiently.

Channel Management The techniques and systems used by hotels to update rates and availability across all distribution channels, including the official website, OTAs, and GDS.

Revenue Management A discipline that seeks to sell the right product, to the right customer, at the right time, at the right price, and through the right channel.

GOPPAR (Gross Operating Profit Per Available Room) Gross Operating Profit Per Available Room.

H

Hotel Brand A hotel's brand identity, made up of the name, logo, symbols, and service standards that set it apart from the competition.

Chain Hotel A hotel that is part of a group or chain operated by the same company or owner.

Hotel Franchise A model in which a hotel owner licenses the use of a larger company's brand and business model for a set period.

Independent Hotel An independently owned and operated hotel that is not part of any chain or franchise.

Hotel Management Company A company that manages a hotel on behalf of the owner for a fee.

All-Inclusive Hotel A hotel whose rate includes accommodation, meals, and activities during the stay.

I

Interface A technical connection between different technology systems, enabling communication and data exchange between them.

Inventory The total number of rooms available for sale across all distribution channels.

L

Group Wash The difference between a group's final occupancy and the room block originally reserved.

Gross Profit The financial result after deducting production costs from total sales.

Gross Operating Profit (GOP) A KPI that represents the hotel's profit after deducting all operating expenses, indicating the operation's level of profitability.

M

Target Market The specific audience to which the hotel directs its marketing and sales efforts.

MICE Acronym for Meetings, Incentives, Conferences and Exhibitions. A tourism segment focused on corporate events, conferences, and exhibitions.

MPI (Market Penetration Index) Market Penetration Index. An indicator that compares the hotel's occupancy with the average market occupancy.

N

Denial The hotel's refusal in response to requests from potential customers.

No-Show A guest who does not show up to honor the booking and does not cancel it.

NREVPAR (Net Revenue Per Available Room) Net Revenue Per Available Room.

O

Occupancy A KPI that indicates the percentage of available rooms that were sold in a given period.

OTA (Online Travel Agency) Online travel agency. Digital platforms that allow consumers to book accommodations and other travel services over the internet.

Overbooking The practice of accepting more bookings than the hotel's physical capacity, to offset cancellations and no-shows.

P

Pace The rate of bookings for a future date. Analyzing the pace makes it possible to identify patterns and calculate projected demand.

PMS (Property Management System) Property Management System. Hotel administration software that centralizes operations such as bookings, check-in, check-out, and billing.

Price Positioning The process of defining the price level the hotel wants to occupy in the market relative to the competition.

Static Pricing The practice of always keeping the same rate, regardless of occupancy, market trends, or demand.

Competition-Based Pricing A strategy in which the hotel sets its rates based on the prices charged by competitors.

Demand-Based Pricing A strategy in which rates are adjusted according to the level of demand in each period.

Pricing The process of setting prices that balances sales volume and revenue per unit, taking into account multiple market factors.

R

Gross Revenue Total sales made by the hotel, without considering deductions or commissions.

Net Revenue Revenue after deducting all expenses and commissions.

Total Revenue The sum of the revenue generated by all of the hotel's operating departments.

Hotel Chain A company that owns or operates multiple hotels, responsible for the management, marketing, and sales of the properties.

Booking The act of securing accommodation, a table, a spa service, or another hotel product in advance.

RevPAR (Revenue Per Available Room) Revenue Per Available Room. A KPI that combines occupancy and average rate to measure the hotel's overall performance.

RevPOR (Revenue Per Occupied Room) Revenue Per Occupied Room. Indicates how much the hotel earns from the guests who actually stay.

RFP (Request for Proposal) Request for Proposal. A formal request sent to suppliers to receive quotes and commercial proposals.

ROI (Return on Investment) Return on Investment. A profitability indicator that assesses the return generated by an investment.

S

Market Segmentation The process of dividing the market into groups with similar characteristics and behaviors, to optimize the revenue management strategy.

Shoulder Date Dates close to high-demand periods, generally with intermediate market behavior.

Shoulder Season The intermediate season between high and low season.

Opaque Sites Booking channels in which the hotel's identity is not revealed until the purchase is completed. The customer sees only the category and the price.

Soft Brand A model of affiliation with a hotel chain or franchise with greater operational flexibility for the hotel.

T

Package Rate A rate that includes, in addition to the room, additional services such as meals, activities, or other benefits.

Net Rate A rate that does not include intermediary commissions.

Average Rate Per Guest Calculated by dividing total lodging revenue by the number of guests in the period.

Timeshare A shared-ownership model in which multiple owners split the right to use an accommodation during defined periods.

Transient Individual guests who seek short stays, with no ties to groups or corporate contracts.

Travel Agent Travel agent. A professional or company that arranges trips for end customers on behalf of suppliers, offering complete packages.

V

Direct Sales Revenue generated through the hotel's own channels, such as the official website, phone, email, or chat, without paying commissions to intermediaries.

Flash Sales Short-duration promotions with significant discounts, used to sell unsold inventory.