Hotel terminology

Average Length of Stay (LOS / AV LOS)(Average)The (average) length of stay of the guests in an accommodation. It results from the division of total nights with the total number of reservations.
Average CommissionAverage CommissionThe average commission that an accommodation pays on the Online Sales Channels. It occurs by dividing the total turnover by the total commission.
Average Daily Rate (ADR) or Average Room RateAverage daily valueThe average selling price of the room. It results from the division of the room's revenue, with overnight stays.
Average Length of Stay (AvLOS)Stay DurationThe average length of stay of a property's reservations. It results from the division of total nights with total bookings taken.
Best Available Rate (BAR)Best Available PriceThe best available price available for a accommodation/hotel in a specific period of time for stays per day. There's usually no prepayment, or a deposit.
Booking PaceThe course of bookings for a certain period. It is usually compared to the corresponding period of the previous year, or previous days.
Booking windowThe interval between the date of booking and the arrival date.
Cancellation WindowIt's only about canceled bookings, and it determines how many days before arrival a customer canceled. It is useful in shaping the cancellation policy.
Central Reservation System (CRS)The Central reservation system is the software that uses an accommodation for the management and recording of reservation data (customer details, arrival, departure, price, etc.).
Channel Management (CM)The central software that connects the individual sales channels in order to renew prices, availability and reservations.
Click Through Rate (CTR)CTR is the percentage of clicks implemented by total number of impressions. It is mainly used for paid ads (Google Ads, Facebook ads, etc.).
Closed on departureIt is the "limitation" that an accommodation can put on its systems so that a given date is not available for check-out through online sales systems.
Closed to arrivalIt is the "limitation" that an accommodation can put on its systems so that a given date is not available for check-in through online sales systems.
CommissionThe percentage commission on sales, through an OTA.
Competitive SetCompetitorsIt is the mix of competitors,
ConversionConvertibilityConversion is the percentage resulting from the number of bookings by the number of visits. It is an indicator of the effectiveness of a sales channel and depends/is influenced (primarily) by the mix of factors such as: Price/Availability/Presentation/User/Benefit/Customer Feedback, etc.
Cost of Walk (COW)The cost of the hotel in case of overbooking (alternative hotel cost, customer travel cost, etc.).
Cost per Acquisition (CPA)The cost needed for a transaction to take place (reservation). It concerns advertising expenses, commission, time, etc.
Cost per Click (CPC)The cost per click is implemented in a paid ad (Google Ads, Facebook Ads, etc.).
Days to ArrivalThe days left until a reservation arrives, usually from the date of booking, or a given date. It serves to formulate a pricing and/or cancellation policy.
DemandDemandThe demand for rooms, which is usually measured in searches, visits, telephone requests etc.
Global Distribution System (GDS)GDS is the world's usually global hotel reservation system to which tourist agencies, airlines and others have access.
Gross RateThe price includes all taxes, commissions and other charges.
Key Performance IndicatorsIt is specific and selected measuring indicators (qualitative or quantitative). Eg. the ADR can be an indicative KPI for a hotel.
Last Room Value (LRV)The price that a property estimates that it will sell the last room. It is mainly used in times of high demand, so that the property receives the maximum possible selling price.
Market Segment (MS)Segmentation of the market and customers by specific characteristics, such as a sales channel (internet, telephone, etc.), incentive (business vs leisure) etc.
Maximum Length of Stay (Max LOS)It is the "restriction" that an accommodation can put on its systems, so that on one or more dates the maximum stay does not exceed a period (e.g. 3 nights).
Minimum Acceptable Rate (MAR)The minimum acceptable price per room. By setting this price it is possible to form a price per sales channel, or by occupancy rate, etc.
Minimum Length of Stay (Min LOS)It is the "limitation" that an accommodation can put on its systems, so that on one or more dates the minimum stay of a customer is longer than a period (e.g. 3 nights).
Net RateThe net price which does not include all taxes, commissions and other charges. In cases of contracts with agencies, the net negotiated price, which usually includes taxes/breakfast or other services (HB, FB).
No-ShowNot showing up at the hotel
Occupancy (Occ)The occupancy rate of a hotel, which occurs by dividing the total occupied rooms for one or more dates or period, with the total available rooms for the same period.
Occupancy ForecastThe estimated occupancy of a hotel. It is calculated taking into account factors such as demand, completeness of the previous days, or the corresponding period of the previous year, etc.
Online Travel Agent (OTA)Online hotel and accommodation reservation channels (,, etc.).
OverbookingThe process in which a hotel or accommodation has sold more rooms than it has available. It is both an unfortunate incident and a practice of maximising completeness and revenue. In both cases, under legislation, the hotel/accommodation is obliged to provide alternative accommodation with corresponding facilities and transportation. It is customary to provide an additional provision to the customer (e.g. free meal, free service, etc.).
Pay Per Click (PPC)PPC is the kind of online advertising campaign, the pricing of which is calculated at a cost per click implemented (e.g. Google Ads, Facebook Ads, etc.).
Property Management System (PMS)It is the software system that uses a hotel/accommodation, which collects reservation, billing, customer details, and has invoice tools, accounting and functional (such as housekeeping, e-mail communication, etc.).
Rate CategoryPrice categoryThe price category in order to be able to differentiate its characteristics, such as number of people, billing/cancellation policy, minimum accommodation, benefits (breakfast, half board) offer expiration date, etc. (e.g. Early Booking, Standard Rate, Non Refundable etc).
Rate DisparityThe diversity of sales prices on the various (online) channels.
Rate ParityThe exchange rate of sales prices on the various (online) channels.
Return on Investment (ROI)RETURN ON INVESTMENTReturn on investment (ROI) is an indicator used to assess the return on an investment or to compare the profitability of different investments. For the calculation of ROI, the benefit (return) of an investment is divided by its cost and the result is expressed as a percentage.
Revenue OptimizationThe process, which focuses on balancing supply and demand in a way that achieves maximising revenue stake, while taking into account current and expected market conditions.
Revenue per Available Room (RevPAR)The profit per available room is generated by dividing total revenue by day or period, with the total available rooms. RevPar is an indicator that combines occupancy with the average selling price.
Room NightsThe nights stayed at the property.
Search Engine Optimization (SEO)The process of optimizing a website (content) to rank it in higher positions, in search engines such as Google.
Shoulder PeriodPeriods outside high season, usually with lower demand.
Unconstrained DemandIt is an indicator of demand and is expressed with the hypothetical performance of a hotel/accommodation at times when the hotel is full. In fact, how many extra rooms could be sold if there was no availability restriction. It is usually used to formulate a pricing policy, or even to extend an investment
Views or ImpessionsThe occurrences of an entry. It is used in online ads, as well as in the registration of the hotel on websites (OTAs, metasearch, etc.).
VisitorsVisitors to a page or entry.
Yield ManagementThe practice is aimed at making the rooms available, with the right amenities, to the right customer, at the right time, at the right time, with the ultimate aim of satisfying customers and maximizing profits/occupancy.
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