Hotel Revenue & Management Blog

What is the meaning / definition of Margin in the hospitality industry? Within revenue management in the hotel industry, Margin is often used to refer to the commission or fee OTA are making on your room rate. Here an example on how we can calculate the margin or commission fee a 3rd party travel agency website makes on the price [...]

What is the meaning / definition of Luxury Hotel in the hospitality industry? A Luxury Hotel is considered a hotel that provides a luxurious accommodation experience to the guest. There are no set standards (such as stars) for luxury hotels. Often 4 or 5-star hotels describe themselves as ‘luxury’. This also means that any accommodation type can use the term [...]

What is the meaning / definition of Last Room Value in the hospitality industry? The term Last Room Value (LRV), refers to the maximum revenue a hotel can expect to make from the last room it has available for sale. It is used to avoid selling the last room below a certain rate – as when market demand is high [...]