All Hoteliers use it a lot but sometimes there are terms we dont know and maybe a bit embarrassed to ask.
Hotel speak
Occupancy – How full a hotel is. A 100 bedroom hotel has 70 rooms sold so it has reached 70% occupancy.
ARR – Average Room Rate. A 100 bedroom hotels has sold 50 rooms at €100 each. The average room rate achieved for this date is €100. ARR should always be calculated less VAT. 13.5% in Ireland.
RevPar – Revenue Per Available Room. This is a key number for hotels. A 100 bedroom hotel has sold 50 rooms for a night at €100 per room. The revenue achieved for all the available rooms is €50 per room. RevPar includes sold and unsold rooms. A room unsold for a night can never be sold again.
Budget – The budget is set before the year starts
Forecast - Forecast can be changed througout the year.
3rd party sites – Websites such as hotels.com that generate bookings for a hotel.
Allocations – An agreement with usually a wholesaler to give then a set amount of rooms each night.
Wholesalers – Traditionally these would get a price from a hotel and the package it up with say an airline journey. GTA would be an example.
Tour Series - A regular agreement for a period of time with for example C.I.E tours to provide rooms.
G.D.S – Global Distribution Systems. Used by Travel Agents to make bookings. The main 4 are Sabre, Gallleo, Amadeus & Worldspan.
Corporate Rate - An agreement with a business to give them a preferential price.
Commercial Rate- Term used to describe a special price given to an individual business person.
Leisure business - Individual people that stay in the Hotel for leisure.
Market Segments – This is how categorize their business. Corporate, Leisure, Tour would be in a separate segments. This enables Hotels to see how each segment grows or declines each year.
Know some more? Drop me a comment.
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