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Hotel glossary

The terms that come up in any revenue, distribution or operations conversation, defined in one line and with an example.

A

ADRAverage Daily Rate · Average room rate
ADR (Average Daily Rate) is the average price at which a property has actually sold each occupied room over a given period. It is calculated by dividing room revenue by the rooms sold and, unlike RevPAR, it ignores the rooms that were left empty.

B

Booking engineDirect booking engine · Hotel booking engine
A booking engine is the application that lets guests book directly on a property’s own website, with real availability and rates and payment online. Unlike an online travel agency, it charges no commission per booking and the guest belongs to the hotel from the start.

C

Channel managerChannel management system
A channel manager is the system that pushes rates, availability and restrictions from a property out to every online travel agency at once, and brings back the bookings that come in through them. Unlike a PMS, it does not run the hotel but its distribution.

G

GOPPARGross Operating Profit Per Available Room
GOPPAR (Gross Operating Profit Per Available Room) measures the real profitability of a property. Unlike RevPAR, which only counts revenue, GOPPAR subtracts operating costs, so it reflects what the hotel genuinely earns and not merely what it takes in through the door.

H

Hotel PMSPMS · Property Management System · Hotel management system
A hotel PMS (Property Management System) is the software where a property runs its daily operation: bookings, availability, rates, rooms, check-in, housekeeping and invoicing. Unlike a channel manager, which faces outwards towards the OTAs, the PMS manages the inside of the establishment.

O

OverbookingHotel overbooking · Overselling
Hotel overbooking (or overselling) means selling more rooms than are actually available for a date. It can be deliberate, to offset the cancellations and no-shows you expect, or accidental, when two sales channels are working from an allotment that no longer matches reality.

P

PickupPick-up · Booking pace
Hotel pickup is the pace at which bookings come in for a future date: the net difference between new reservations and cancellations over a period. It is used to anticipate whether a date is going to fill up and to decide when it is worth moving the rate.

R

T

TrevPARTotal Revenue Per Available Room · TRevPAR
TrevPAR (Total Revenue Per Available Room) measures everything a property bills for each of its available rooms. Unlike RevPAR, which counts accommodation alone, it takes in the restaurant, the bar, the spa, the car park and any other revenue the establishment produces.

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