Hotel Revenue & Management Blog

What is the meaning / definition of Rack Rate in the hospitality industry? When it comes to setting prices for rooms, establishing the highest rate is important. This rate is called the Rack Rate, and it is from this maximum price that all other rates take their lead. But that is not to say that one Rack Rate will apply to [...]

What is the meaning / definition of Property in the hospitality industry? Property is such a general term, isn’t it? Domestic property, commercial property, property for sale, rented property, lost property! In Hospitality, property usually means commercial premises – hotel buildings, basically: the hotels, motels, lodges, cabins, chalets, luxury apartments and other types of buildings around the world where individuals, [...]

What is the definition of PROFPAR in the hospitality industry? PROFPAR stands for: Profit Per Available Room PROFPAR is a KPI calculation of profit earnings for each room available in the hotel. PROFPAR is based on operating profit, which accounts for movements in both revenues and expenses. In comparison and not having delved too deeply into the RevPAR vs. ProfPAR [...]