A KPI used to calculate the average price or rate for each sold room for a specific day or period. It is one of the core indicators of a hotel's financial performance.

The average number of nights guests stay at a hotel during a particular period. It helps in understanding booking patterns and optimizing pricing strategies.

The lowest non-restricted rate bookable by all guests. This rate can change several times a day depending on demand and is the baseline for other rate plans.

The rate at which reservations are made for a particular date in the future. Monitoring pace helps revenue managers anticipate demand and adjust pricing accordingly.

A software solution that allows hotels to manage their inventory and rates across multiple online distribution channels (OTAs, GDS, direct website) from a single dashboard.

A group of competing hotels whose performance serves as a benchmark for your own performance. They are usually chosen based on location, amenities, and target market.

A reservation made directly with the hotel, typically through its own website or reservation team, bypassing third-party channels like OTAs to save on commission costs.

The strategy of adjusting room rates in real-time based on current market demand, competitor pricing, and other external factors to maximize revenue.

A comprehensive performance metric that considers all operating revenues and expenses, providing a clear picture of the hotel's overall profitability.

The number of nights a guest stays at the hotel. Revenue managers often use LOS restrictions (like minimum or maximum stay) to optimize occupancy during high-demand periods.

Third-party websites (like Booking.com, Expedia) that sell hotel rooms to consumers. They charge a commission for each booking generated through their platform.

The percentage of available rooms that were sold during a specific period. It is a fundamental metric for assessing how full the hotel is.

The practice of maintaining consistent rates across all distribution channels. Many OTAs require rate parity agreements to ensure they offer the same price as the hotel's direct website.

The most widely used performance metric in the hotel industry. It assesses a hotel's ability to fill its available rooms at an average rate.

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue from a fixed, perishable resource (hotel rooms).