Hotel Revenue Management Glossary

Need to know what a hotel term means? Look it up in the Xotels Glossary. We explain definitions of terminology industry lingo from hotel revenue management, ecommerce, marketing and distribution.

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Term Definition
ADR - Average Daily Rate

What is the meaning / definition of ADR in the hospitality industry?

ADR stands for: Average Daily Rate

It is a KPI to calculate the average price or rate for each hotel room sold for a specific day.

ADS - Alternative Distribution System

What is the meaning / definition of ADS in the hospitality industry ?

ADS stands for: Alternative Distribution System.

The term is used as to describe the distribution via 3rd party websites. This includes online travel agencies (OTA), travel portals, travel search engines/ directories, online hotel consolidators, airline websites with online reservation options.

Agency Model

What is the meaning / definition of OTA Agency Model in the hospitality industry?

In hotel revenue management when talking about an Agency Model, we are referring to the commercial model of an OTA (online travel agency). The main characteristic of the Agency Model OTA is that the guest pays the Hotel directly when the stay is consumed and the hotel pays the OTA commission after the stay has occured.

Allocation

What is the meaning / definition of Allocation in the hospitality industry?

Allocation is the number of rooms a hotel has available for sales.

Allotment

What is the meaning / definition of Allotment in the hospitality industry?

The term Allotment is used in the Hotel industry to designate a certain block of pre-negotiated rooms which have been bought out and held by a third party (such as a travel organizer, wholesaler, tour operator, hotel consolidator, travel agent, OTA).

ALOS - Average Length of Stay

What is the meaning / definition of Average Length of Stay in the hospitality industry?

ALOS stands for Average Length of Stay. It is the average amount of days guests stay at the hotel during a particular period.

Amadeus

What is the meaning / definition of Amadeus in the hospitality industry?

Amadeus is a Computer Reservation System (CRS) or better a Global Distribution System (GDS).
It refers to the reservation tool travel agents use when making an air, hotel, car or other travel service booking.
Amadeus is the leading GDS for the travel industry.

Apollo

What is the meaning / definition of Apollo in the hospitality industry?

Apollo is (similar to Amadeus) a Global Distribution System (GDS) operated by Galileo International (owned by Travelport). 

ARI - Average Rate Index

What is the meaning / definition of ARI in the hospitality industry?

ARI stands for: Average Rate Index.

It is a Hotel KPI that measures the performance of their ADR compared to their comp set during the same period (competitive set: a group of other hotel brands and competitor that have similar target market and concept).

ARR - Average Room Rate

What is the meaning / definition of ARR in the hospitality industry?

ARR stands for: Average Room Rate.

It is a hotel KPI which measures the average rate per available room - similarly to ADR.

ATR - Average Treatment Rate

What is the meaning / definition of ATR in the hospitality industry?

ATR stands for: Average Treatment Rate.

This ATR formula is mainly used for Spa Operation (either independently or within a hotel). It calculates the average rate and it is varied on different treatment packages as well as on the demand / occupancy of the spa booking rate.

Auction Site

What is the meaning / definition of Auction Site in the hospitality industry?

Auction Site is a website, where the price of a product or service is determined by the winning bid. The auction Site allows the user to name their own price for any posted products or services within a certain time frame. The price rises depending on the bidding people. The person who bid with the highest price within the set time frame will be the winner.
This tool is often used by Hotel Revenue Managers to sell unsold inventory at a lower price, in an opaque way.

Availability

What is the meaning / definition of Availability in the hospitality industry?

Availability is the amount of vacant rooms a hotel has to sell.

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