Hospitality revenue terminology and core metrics, explained.
A clear reference guide for hotel owners, general managers, and revenue leaders to master pricing models, distribution channels, and performance formulas.
Essential Industry Terms
Built for hospitality decision-makers
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Hotel owners & investors
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Revenue professionals
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Hotel revenue management glossary
Essential hospitality terminology, key commercial performance formulas, and strategic definitions explained for hoteliers and property leaders.
A core hospitality metric measuring the average rental revenue earned per paid occupied room in a given period. It evaluates pricing power without reflecting total room inventory capacity.
A computerized reservation system that manages room inventory, guest information, and pricing across all direct and indirect sales channels.
Software that centrally connects a hotel's Property Management System to various online distribution channels, synchronizing room rates and live availability in real time.
The automated intelligence process of tracking, comparing, and analyzing room prices across a hotel's defined competitive set to maintain competitive positioning.
The practice of using historical data, local events, pick-up trends, and market indicators to project future guest room demand and set strategic price tiers.
Reservations made straight through a hotel's own website, phone, or front desk without third-party intermediary commissions.
A flexible pricing model where room rates fluctuate continuously based on real-time market demand, remaining lead time, and booking pace.
A comprehensive profitability metric that measures operational profit against total available rooms, accounting for both revenues and operational expenses.
The total number of consecutive nights a guest occupies a room during a single booking reservation.
A revenue management restriction requiring guests to book a minimum number of nights to secure a room, typically applied during high-demand festival or holiday dates.
The percentage of available rooms occupied by paying guests over a specific period, reflecting property utilization.
Third-party digital marketplaces such as Booking.com, Expedia, and Agoda where travelers search, compare, and book hotel rooms.
A calculated revenue tactic of accepting more room reservations than physical capacity to offset expected cancellations and no-shows.
The central software used to manage daily hotel operations, including front-desk check-ins, housekeeping, billing, and room assignments.
The legal or contractual requirement to maintain identical base room prices across all public distribution channels and the hotel's direct website.
An algorithmic software application that analyzes real-time market data to recommend optimal daily room rates and inventory controls.
The gold-standard hospitality metric combining both pricing power and room occupancy into one actionable figure.
The tactical process of selling the right room to the right guest at the right time for the right price to optimize revenue from perishable inventory.
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