Dive into the world of property and revenue management with our quick glossary, designed to help you understand key terms that drive these industries.
ADR (Average Daily Rate): The average rental income per paid occupied room during a specific period.
RevPAR (Revenue Per Available Room): A performance metric calculated by dividing the total room revenue by the total number of available rooms.
GOPPAR (Gross Operating Profit Per Available Room): A profitability metric that considers the gross operating profit relative to the total number of available rooms.
Occupancy Rate: The percentage of occupied rooms compared to the total number of available rooms during a specific time period.
LOS (Length of Stay): The duration of a guest's stay at a property, usually measured in nights.
OTA (Online Travel Agency): A website or platform that allows customers to book travel-related services, such as accommodation, flights, and car rentals.
GDS (Global Distribution System): A network that allows travel agencies, hotels, airlines, and other travel providers to access and book services for their clients.
Channel Management: The process of managing and distributing inventory across various booking channels, such as OTAs, GDSs, and direct bookings.
Rate Parity: The practice of maintaining consistent rates for the same room type across all distribution channels.
Yield Management: A pricing strategy aimed at maximising revenue through understanding, anticipating, and influencing consumer behaviour.
Revenue Management: A strategic approach to pricing and inventory control that uses data analysis to predict consumer behaviour and optimise product availability and pricing.
Booking Pace: The rate at which reservations are made for a specific period, used to identify trends and make forecasts.
Booking Window: The time between when a reservation is made and the guest's arrival date.
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.
No-Show: A guest who has made a reservation but does not arrive at the property on the scheduled check-in date.
Overbooking: The practice of accepting more reservations than there are available rooms, to compensate for potential cancellations or no-shows.
Upselling: Encouraging guests to purchase a higher-priced room or additional services to enhance their stay and increase revenue.
Cross-selling: Promoting related products or services to guests, such as restaurant reservations or spa treatments, to generate additional revenue.
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.
Forecasting: The process of using historical data and trends to predict future demand, occupancy, and revenue, which helps inform pricing and inventory management decisions.