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Glossary: Property Management & Revenue Management

Dive into the world of property and revenue management with our quick glossary, designed to help you understand key terms that drive these industries.

  1. ADR (Average Daily Rate): The average rental income per paid occupied room during a specific period.

  2. RevPAR (Revenue Per Available Room): A performance metric calculated by dividing the total room revenue by the total number of available rooms.

  3. GOPPAR (Gross Operating Profit Per Available Room): A profitability metric that considers the gross operating profit relative to the total number of available rooms.

  4. Occupancy Rate: The percentage of occupied rooms compared to the total number of available rooms during a specific time period.

  5. LOS (Length of Stay): The duration of a guest's stay at a property, usually measured in nights.

  6. OTA (Online Travel Agency): A website or platform that allows customers to book travel-related services, such as accommodation, flights, and car rentals.

  7. GDS (Global Distribution System): A network that allows travel agencies, hotels, airlines, and other travel providers to access and book services for their clients.

  8. Channel Management: The process of managing and distributing inventory across various booking channels, such as OTAs, GDSs, and direct bookings.

  9. Rate Parity: The practice of maintaining consistent rates for the same room type across all distribution channels.

  10. Yield Management: A pricing strategy aimed at maximising revenue through understanding, anticipating, and influencing consumer behaviour.

  11. Revenue Management: A strategic approach to pricing and inventory control that uses data analysis to predict consumer behaviour and optimise product availability and pricing.

  12. Booking Pace: The rate at which reservations are made for a specific period, used to identify trends and make forecasts.

  13. Booking Window: The time between when a reservation is made and the guest's arrival date.

  14. Last Room Value (LRV): The revenue potential of the last room available for sale, used to determine the most profitable way to sell that room.

  15. No-Show: A guest who has made a reservation but does not arrive at the property on the scheduled check-in date.

  16. Overbooking: The practice of accepting more reservations than there are available rooms, to compensate for potential cancellations or no-shows.

  17. Upselling: Encouraging guests to purchase a higher-priced room or additional services to enhance their stay and increase revenue.

  18. Cross-selling: Promoting related products or services to guests, such as restaurant reservations or spa treatments, to generate additional revenue.

  19. Dynamic Pricing: A pricing strategy that adjusts rates based on real-time demand and supply factors, such as market conditions, competitor rates, and seasonal trends.

  20. Forecasting: The process of using historical data and trends to predict future demand, occupancy, and revenue, which helps inform pricing and inventory management decisions.

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