Lodge terminology: A whole information for lodge homeowners

What’s lodge terminology?

Lodge terminology is the specialised vocabulary and shorthand that hospitality professionals use to explain rooms, charges, know-how, and efficiency metrics. This standardized language streamlines every day operations, from entrance desk check-ins to income administration, guaranteeing clear communication throughout all lodge departments and with {industry} companions.

On this weblog, we are going to unpack the important phrases, clarify the place they match into every day operations, and present you ways a agency grasp of this vocabulary interprets into stronger outcomes in your property.

Why is lodge terminology vital for hoteliers?

Clear terminology retains your crew aligned, your knowledge dependable, and your selections sooner. When everybody shares the identical definitions of ADR, RevPAR, and parity, you chop out confusion that may stall income conferences or inflate prices. Exact language additionally strengthens communication with tech companions and third-party channels, so system integrations and price updates occur with out expensive errors.

Exact language additionally strengthens communication with tech companions and third-party channels, so system integrations and price updates occur with out expensive errors. Plus, industry-standard terminology cuts new rent coaching time, boosting productiveness from day one.

Key takeaways

• A shared vocabulary removes guesswork and helps groups spot traits earlier than they develop into issues.
  
• Correct phrases make monetary reviews clearer for homeowners and buyers, backing up your suggestions with trusted knowledge.
• Trade-standard language hastens coaching for brand new hires, reducing onboarding time and boosting productiveness sooner.

What abbreviations ought to you recognize?

ABVPAR (Common reserving worth per obtainable room)

Divides complete reserving worth by the variety of obtainable rooms to disclose how a lot income every room might generate.

ADR (Common every day price)

Exhibits the common room income earned from offered rooms over a given interval.

ALOS (Common size of keep)

The imply variety of nights every reserving spans, calculated by dividing complete room nights by complete reservations.

BAR (Finest obtainable price)

Your lowest unrestricted, publicly proven price for a particular date; typically versatile and used as a pricing benchmark.

BEO (Banquet occasion order)

An in depth doc that lists each component and value of a perform, guaranteeing all departments ship the identical visitor promise.

BRG (Finest price assure)

A lodge pledge that visitors is not going to discover a decrease public worth elsewhere in the event that they e-book direct.

BOH (Again of home)

Employees-only areas corresponding to kitchens and workplaces the place operational work occurs away from visitors.

CPOR (Value per occupied room)

Whole operational prices divided by the variety of occupied rooms, exhibiting the common expense to service every paying visitor and serving to determine cost-efficiency alternatives.

CRM system (Buyer relationship administration)

Software program that shops visitor profiles, tracks interactions and helps tailor-made advertising.

CRS (Central reservation system)

The stock and price hub that pushes your knowledge to each channel, decreasing double-selling and worth errors.

CTA (Closed to arrival)

A yield restriction stopping check-ins on a particular date to guard high-demand durations.

CTD (Closed to departure)

Blocks check-outs on a selected date, encouraging visitors to remain by way of a peak evening.

DND (Don’t disturb)

A visitor standing that tells workers to skip room entry, which adjusts housekeeping schedules.

ETA (Estimated time of arrival)

Data from visitors that helps front-desk and concierge groups plan staffing and repair.

F&B (Meals and beverage)

All retailers and income from eating places, bars, room service and banqueting.

FOH (Entrance of home)

Visitor-facing areas corresponding to reception, foyer and concierge that form first impressions.

GOPPAR (Gross working revenue per obtainable room)

Gross working revenue divided by obtainable rooms, giving a room-level view of profitability after working prices.

KPI (Key efficiency indicator)

A measurable worth corresponding to RevPAR or occupancy used to gauge success towards targets.

Most size of keep

A reserving rule that caps what number of nights one reservation can span, stopping long-range stock blockages.

MICE (Conferences, incentives, conferences and exhibitions)

A section that drives group room nights and occasion income.

MLOS (Minimal size of keep)

Requires reservations to incorporate a minimum of a set variety of nights, defending shoulder dates.

MPI (Market penetration index)

Compares your occupancy towards a aggressive set; a rating above 100 exhibits stronger market share.

NRB (Negotiated price enterprise)

Contracted company or company accounts that decide to quantity at agreed charges.

OTA (On-line journey company)

Third-party website like Reserving.com that sells rooms for fee and expands distribution attain.

OTB (On the books)

Confirmed future reservations or income already secured for upcoming dates.

PAX (Passengers / individuals)

Shorthand for the variety of individuals attending an occasion, eating or travelling.

PMS (Property administration system)

Core lodge platform managing reservations, billing, check-in, housekeeping and reporting.

PMG (Value match assure)

Assures visitors that the lodge will match any decrease qualifying price discovered elsewhere, encouraging direct bookings.

RevPAR (Income per obtainable room)

ADR multiplied by occupancy; affords a fast snapshot of how effectively you promote and worth obtainable rooms. See additionally: RevPAM.

POS (Level of sale)

System that processes funds in retailers and posts prices again to visitor rooms by way of the PMS.

RevPOR (Income per occupied room)

Room income divided by occupied rooms, highlighting how a lot every paying visitor contributes.

SOP (Commonplace working process)

A documented, step-by-step guideline that ensures duties are carried out persistently.

STR report (Smith Journey Analysis report)

Benchmarking report that compares your ADR, occupancy and RevPAR with native opponents.

TRevPAR (Whole income per obtainable room)

Whole lodge income, together with rooms, F&B and extras, divided by obtainable rooms to indicate full incomes energy.

YTD (12 months to this point)

Aggregates efficiency from 1 January to in the present day for pattern monitoring and funds opinions.

What are essentially the most regularly used lodge phrases?

Availability

The entire variety of rooms you continue to need to promote for a given date or date vary. Income managers monitor availability every day to information pricing and advertising strikes.

Reserving engine

The web instrument in your web site that lets visitors verify charges and ensure reservations in actual time with out leaving your website.

Channel supervisor

Software program that pushes reside charges and stock out of your PMS to OTAs, GDSs and metasearch channels so each platform exhibits correct knowledge.

Channel mapping

The method of linking every room kind and price plan in your PMS to the matching fields on each linked channel, guaranteeing info flows accurately.

Fee

The charge an OTA, journey agent or wholesaler prices for every reservation, often a share of room income.

Double reserving

When two reservations are made for a similar room on the identical date, typically brought on by gradual or handbook stock updates.

Prolonged keep

A reserving that retains a visitor in-house for seven nights or extra, typically at a reduced price and with apartment-style facilities.

Home depend

The actual-time snapshot of complete occupied, vacant and out-of-order rooms within the lodge. Entrance-desk groups use it to steadiness walk-ins, upgrades and upkeep.

Bill

A invoice despatched to a visitor or firm that particulars prices for lodging, meals and different companies and exhibits fee phrases.

Lead time

The variety of days between when a visitor books and once they arrive. Brief lead occasions can sign stronger last-minute demand.

Metasearch

Value-comparison websites corresponding to Google Accommodations or Trivago that show charges from a number of OTAs and your direct channel facet by facet.

Web price

The room worth you provide to companions after fee has been eliminated. Wholesalers and tour operators add their margin earlier than promoting to travellers.

Bundle price

A bundled provide that mixes the room with extras corresponding to breakfast, parking or spa therapies underneath one worth.

Fee gateway

A safe service that authorises and processes on-line card funds, defending card-holder knowledge and decreasing fraud danger.

Fee plan

A set of pricing guidelines for a room kind, together with meal inclusions, cancellation phrases and minimum-stay necessities.

Service contract

A proper settlement that outlines ongoing help, upkeep or provide phrases with distributors corresponding to laundry or know-how suppliers.

System of document

The authoritative supply of fact for a particular knowledge set. In most lodges, the PMS is the system of document for visitor profiles and reservations.

Emptiness

Any room that’s clear, obtainable and prepared on the market. A excessive emptiness depend throughout peak season alerts a pricing or advertising problem.

SM: Social Proof Panel (Point out ID# from this sheet)

What are important lodge vocabulary for hospitality professionals?

Important lodge vocabulary refers back to the shared set of phrases and acronyms hospitality professionals use to explain key metrics, pricing techniques, operations and know-how. Realizing this language prepares each division to behave shortly, keep away from miscommunication and hyperlink every day selections to efficiency knowledge.

Have to know

• RevPAR dominates efficiency monitoring. 77.4% of income managers identify it as their major metric, so everybody should perceive the phrases that feed into it, together with occupancy and ADR.
  
• PMS terminology retains knowledge clear. 86% of hoteliers contemplate the property-management system their most vital know-how, making ideas like system of document, evening audit, and channel administration business-critical.
  
• Occupancy underpins each main KPI. It’s a every day well being verify that additionally drives each ADR and RevPAR calculations, so fluency in occupancy-related phrases corresponding to cease promote, overbooking and room block helps stop income leaks.

Audit path

A chronological document of each change or transaction in your lodge techniques, exhibiting who did what and when. It helps accountability, fraud prevention and compliance checks.

Channel administration

The self-discipline and know-how of distributing reside charges and availability throughout OTAs, GDSs, metasearch and direct channels from one management level.

Comp set

A aggressive set of comparable lodges towards which you benchmark occupancy, ADR and RevPAR to gauge efficiency.

Gadget asset

Any bodily {hardware} underneath lodge possession, from good thermostats to handheld POS models, tracked for upkeep, depreciation and safety.

Dynamic packaging

A reserving stream that lets visitors construct customised bundles corresponding to room, flights, automobile rent and experiences in actual time, lifting ancillary income.

Perform room occupancy

The proportion of assembly, banquet or ballroom area booked over a given interval, used to measure event-space effectivity.

Gross margins

The share of complete income left after direct prices corresponding to housekeeping provides and F&B elements are eliminated.

Lodge sustainability

Practices and insurance policies that lower environmental impression, enhance social outcomes and increase operational effectivity, from power administration to waste discount.

Stock grid

A matrix in your PMS or channel supervisor that shows room sorts, dates, charges and availability at a look for quick updates.

Loyalty program

A structured scheme that rewards repeat visitors with factors, perks or tier advantages, encouraging larger lifetime worth.

Web gross sales

Whole gross sales income minus refunds, reductions and allowances; the determine that almost all intently represents true top-line revenue.

Evening audit

Finish-of-day reconciliation that rolls the enterprise date, balances ledgers and flags discrepancies earlier than the brand new shift begins.

Overbooking

Promoting extra rooms than you bodily need to offset anticipated cancellations and no-shows; requires tight controls to keep away from visitor displacement.

Fee parity

Protecting an equivalent public price for a similar room throughout each gross sales channel to forestall undercutting and keep model credibility.

Room block

A cluster of rooms put aside for a gaggle, convention or wedding ceremony, typically underneath a particular price or launch date.

Sundries

Low-value, miscellaneous objects corresponding to snacks, postcards or travel-size toiletries that generate add-on income.

Turnover price

The proportion of workers who go away and should be changed inside a given time-frame; excessive turnover inflates recruitment and coaching prices.

Understaffing

Working with fewer workers than required, which strains service high quality and workers morale.

Competitor-based pricing

Setting your room price by monitoring and responding to what your comp set is charging slightly than basing worth solely on inner prices.

Demand-based pricing

Adjusting charges in keeping with fluctuations in market demand, seasonality or main occasions.

Dynamic pricing

Automated, rule-driven price modifications that mix competitor, demand and booking-pace knowledge to maximise income at any second.

Early chicken

A reduced price supplied to visitors who e-book nicely upfront, boosting base demand and money stream.

EBITDAR

Earnings earlier than curiosity, taxes, depreciation, amortisation and hire; a profitability metric helpful for evaluating asset-heavy lodges.

Flash gross sales

Brief-window promotions, typically twenty-four to seventy-two hours, that market deep reductions to stimulate fast bookings and generate buzz.

Forecasting mannequin

A statistical or machine-learning instrument that predicts future demand, occupancy, ADR and income to information budgets and staffing.

Lose-it price

Absolutely the lowest price you’re prepared to simply accept earlier than turning the enterprise away as a result of prices outweigh income.

Market segmentation

Categorising visitors by traits corresponding to function of journey, geography or reserving channel to tailor pricing, advertising and repair.

Occupancy price

The proportion of accessible rooms which can be offered throughout a particular interval, a core indicator of demand.

Fee fences

Guidelines that separate buyer segments by willingness to pay, for instance non-refundable phrases, minimum-stay necessities or package deal inclusions.

Income administration

The strategic use of knowledge, pricing and stock controls to promote the precise room to the precise visitor on the proper time for the precise worth.

Income optimisation

A holistic method that extends revenue-management rules throughout all departments, together with rooms, F&B and spa, to develop complete property income.

Cease promote

A restriction that closes gross sales of a particular price plan or channel when demand is excessive or stock is constrained.

Upselling

Encouraging visitors to buy a higher-value room or add-on service throughout reserving or at check-in, boosting common spending.

Worth added pricing

Sustaining the bottom price whereas bundling further perks corresponding to breakfast, parking or late checkout to compete on worth as an alternative of deep reductions.

Yield administration

Tactical changes of worth and stock in response to reserving tempo, remaining provide and time to arrival, aiming to maximise RevPAR.