Hotel History
This specific word, a blend of "motor" and "hotel," was first coined and applied in San Luis Obispo, California, in 1925.
What is a motel?
This metric is calculated by dividing Total Room Revenue by the Number of Rooms Sold.
What is Average Daily Rate (ADR)?
The crucial step in Revenue Management that determines the price elasticity and booking window differences among corporate, leisure, and group travelers.
What is Market Segmentation?
This central piece of software manages on-site operational functions like check-in, check-out, room inventory, and guest folios.
What is a Property Management System (PMS)?
This KPI measures the revenue generated for every dollar spent on a Metasearch ad.
What is Return on Ad Spend (ROAS)?
The inventory control restriction used by revenue managers to prevent guests from arriving on a specific high-demand date but still allow them to stay through that date.
What is Closed To Arrival (CTA)?
This hotel company, known for brands like W Hotels and Sheraton, was acquired by Marriott International in 2016 for $13.6 billion, creating the world's largest lodging company.
What is Starwood?
This is the most comprehensive top-line metric, calculated by multiplying the Average Daily Rate by the Occupancy Rate.
What is Revenue Per Available Room (RevPAR)?
This type of rate is enforced by a restriction, such as requiring a Saturday night stay or being non-refundable.
What is a fenced rate?
This system is specifically designed to manage inventory and rates across all third-party channels, like OTAs and GDS.
What is a Channel Manager (CM)?
The objective of this stage is to capture attention, inspire travel, and introduce your hotel.
What is Awareness?
The crucial early-stage estimate that represents the potential total demand for rooms before any capacity limits or booking restrictions are applied.
What is Unconstrained Demand?
This Texas city was the location of the first hotel to officially bear the Hilton name, a property opened by Conrad Hilton in 1925, several years after he bought his first hotel in Cisco, TX.
What is Dallas?
This metric expands on RevPAR by including all revenue sources, such as F&B and Spa.
What is Total Revenue Per Available Room (TRevPAR)?
This acronym for groups is important to Revenue Managers because these segments are typically price-sensitive but book during off-peak periods.
What is SMERF?
This system uses complex algorithms and dynamic pricing to calculate and recommend optimal room rates in real-time.
What is a Revenue Management System (RMS)?
This is the "planning" phase where the traveler knows the destination but is comparing hotels.
What is Consideration?
During a city-wide convention week, a Revenue Manager notes that rooms are only selling for one night each, creating excessive housekeeping costs. To force guests to book a more profitable, multi-night stay, the manager should impose this room night restriction for the entire week.
What is Minimum Length of Stay (MLOS)?
Launched by the Holiday Corporation in 1984, this mid-market brand was acquired by Hilton in 1999 as part of its purchase of the Promus Hotel Corporation.
What is Hampton Inn?
This key index, which compares a hotel's RevPAR to the aggregate RevPAR of its competitive set, indicates the property is capturing its fair share of market revenue if its value is exactly 100.
What is the Revenue Generation Index (RGI)?
AAA, Military, and Resident rates are all examples of this type of rate, which requires a guest to present valid identification or membership to be eligible.
What are Qualified Discounts (or Qualified Rates)?
This category of software is used to continuously scan OTAs, metasearch sites, and other channels to identify and alert revenue managers to rate discrepancies that violate a hotel's pricing agreements.
What are Rate Shopping or Rate Parity Monitoring Tools?
This term is the number of times that users click on your ads divided by the number of times your ad is displayed.
What is Click-Through Rate (CTR)?
This is the minimum acceptable price for a room on a specific date, used to automatically restrict the sale of lower-value rates, especially during high-demand periods.
What is a Hurdle Point or Last Room Value?
This large lodging franchisor significantly expanded its upscale portfolio in August 2022 by acquiring the Americas operations of Radisson, including the Radisson Blu and Country Inn & Suites brands.
What is Choice Hotels?
This percentage metric, calculated by dividing the difference between the Sell Rate and Actualized ADR by the Sell Rate, is used by hotels to identify revenue leakage.
What is ADR Breakage?
This type of distribution agreement requires the hotel to offer the partner a set number of rooms at a wholesale rate, which they then resell.
What is a Merchant Model (or Allotment Agreement)?
This recently proposed data protocol, which is separate from the RMS or PMS, is designed to give Large Language Models (LLMs) like ChatGPT direct, secure access to a hotel's live inventory, rates, and content to facilitate AI-driven direct bookings.
What is the Model Context Protocol (MCP)?
The goal of this phase is to secure the booking and protect profit margins by driving direct bookings.
What is Conversion?
This inventory tactic is used to protect against the loss of revenue from lack of sell through availability and anticipated cancellations and no-shows.
What is overbooking?