Key Terms
Loosely defined as establishments engaged primarily in providing lodging space to the general public.
Accommodations
Ratio comparing the total number of rooms occupied for a given time period to the total number of rooms available for rent.
Occupancy rate
Facilities designed and operated for the purpose of providing travelers with a temporary place to stay.
Lodging
Facilities that are owned and operated as single units with no chain affiliation or common identification.
Independent properties
Right of ownership evidenced by the transfer of a certificate of title. The buyer has the right to sell, lease, or bequeath the property or interest (as in a timeshare).
Fee simple
The level at which total sales equals total costs.
Break-even
Goods and services provided with accommodations that contribute to guest comfort.
Amenities
Either ownership or the right to occupy and use a vacation home for a specific period of time.
Timeshare
Confirming more reservations for rooms than can be provided during a specified time period.
Overbooking
Groups of condominium units that are released by their owners for rental purposes and are managed by lodging companies.
Rental pools
A type of lease in which legal title does not pass to the buyer. The buyer has the right to occupy and utilize the facilities for a particular time period.
Right-to-use
Groups of properties that are affiliated with one another and have common ownership and/or management control and oversight.
Chain operations
Performance measures that are used by sim-ilar types of businesses to monitor key operations.
Benchmarks
A small inn or boarding house similar to a B&B.
Pension
Maximum travel expense amount that will be reimbursed on a per day basis.
Per diem
Associations formed to conduct advertising and marketing programs and generate reser-vations and referrals for member properties.
Referral organizations
Individual accommodations and lodging facilities.
Properties
Services provided by employees who specialize in meeting the special requests of guests and provide guest services such as making reservations and supplying information.
Concierge services
A guaranteed price that the guest is quoted the lowest available rate for a night’s stay.
Best available rate (BAR)
Operating agreements with management companies to conduct day-to-day operations for a specific property or properties.
Management contracts
A contractual agreement providing for the use of a recognized brand name, access to a central reservation system, training, documented operating procedures, quantity purchasing discounts, and technical assistance in return for royalties and fees.
Franchise
Payment (usually a percentage of sales) for the use of a franchiser’s brand name and operating systems.
Royalties
The standard quoted rate for one night’s lodging.
Rack rate
Cost to construct and furnish each hotel room.
Cost per key
A reservation.
Booking