Lodging and Revenue
The abbreviation for Average Daily Rate, calculated by dividing total room revenue by the number of rooms sold.
What is ADR?
The systematic process of analyzing menu items based on profitability and popularity to determine optimal pricing and layout.
What is Menu Engineering?
A bundled product that combines multiple segments—such as airfare, lodging, meals, and local tours—into a single price.
What is a Tour Package (or Vacation Package)?
The total combined perception and interactions a customer experiences with a business over time.
What is Customer Experience (or Customer Service Mindset)?
A business structure where an independent operator pays royalties and fees to operate under a parent brand's name.
What is a Franchise (or Franchisee)?
This key performance metric measures hotel efficiency by multiplying Occupancy Rate by ADR (or dividing total room revenue by total available rooms).
What is RevPAR (Revenue Per Available Room)?
A food safety management system that monitors physical, chemical, and biological hazards throughout the food production process.
What is HACCP (Hazard Analysis Critical Control Point)?
Travel directed toward exotic, natural environments, intended to support conservation efforts and observe wildlife.
What is Ecotourism?
Any interaction between a customer and a business where the customer forms an impression (positive or negative) of the brand.
Answer: What is a Moment of Truth?
A leadership style where the leader dictates policies, controls all activities, and makes decisions without consulting the team.
What is Autocratic Leadership?
A dynamic pricing strategy where room rates change continuously based on supply, demand, and seasonal trends.
What is Yield Management?
The financial metric calculated as: (Beginning Inventory + Purchases - Ending Inventory) ÷ Food Sales
What is Food Cost Percentage?
An economic concept where money spent by tourists is recirculated throughout the local economy, multiplying its financial impact.
Answer: What is the Multiplier Effect?
Unpaid, informal communication between consumers regarding their personal experience with a brand or service.
What is Word-of-Mouth (WOM) Marketing?
A central reservation system or front desk software that manages room inventory, guest profiles, billing, and housekeeping operations.
What is a PMS (Property Management System)?
A practice where hotels or airlines sell more bookings than physical capacity, anticipating cancellations and no-shows.
What is Over-Booking?
A fixed-price menu offering a complete multi-course meal for a single set price.
What is Prix Fixe (or Table d'Hôte)?
The peak travel period when demand, lodging rates, and tourist volume reach their highest levels.
What is High Season (or Peak Season)?
A metric measuring customer loyalty by asking how likely guests are to recommend the business on a scale of 0 to 10.
What is NPS (Net Promoter Score)?
An agreement where a property owner contracts a third-party company to run the daily operations of a hotel for a fee.
What is a Management Contract?
A property management term for a guest who stays longer than their original reservation date without notifying the front desk.
What is Overstay?
The practice of pricing individual menu items separately rather than bundling them into a fixed meal.
What is À la carte?
A third-party company like Expedia or Booking.com that aggregates travel inventory for consumers online.
What is an OTA (Online Travel Agency)?
The operational authority granted to frontline hospitality employees to resolve guest complaints on the spot without management approval.
What is Employee Empowerment?
A financial metric measuring the percentage of revenue remaining after subtracting operating expenses from gross profit.
What is Operating Profit Margin?