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
Chain Code

What is the meaning / definition of Chain Code in the hospitality industry?

Chain Code is a two-character code used to identify hotel chains within a GDS. Chain codes may vary by GDS.

Chain Hotel

What is the meaning / definition of Chain Hotel in the hospitality industry?

A Chain Hotel is a hotel that is part of a series or of a group of hotels operated by the same company or owner. Opposite of an independent hotel it is a ‘chain-affiliated’ hotel.

Channel Management

What is the meaning / definition of Channel Management in the hospitality industry?

Channel Management (also Multi-Channel-Management) refers to the techniques and systems used by hotels in line with their distribution policy. This management method includes content management as well as data reconciliation in various distribution channels. It means the updating of the hotel information, of room rates and availabilities across all distribution channels, such as hotels website, third parties (OTAs, IDS, ADS) and the CRS/GDS.

Channels

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

A term that refers to Distribution Channels and that describes the different methods / platforms buy which / in which bookings for a hotel are made. A Channel can be a hotel’s booking engine a direct phone reservation or a specific stream of revenue such as a 3rd party website, an OTA, etc.

Close Out

What is the meaning / definition of Close Out in the hospitality industry?

Hotel rooms made unavailable from sales. Such a closed out could be for a variety of reasons, and applied to individual market segments.

Commission

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

Commission is a charge that a hotel pays to third parties (travel agents, OTAs) for selling their hotel rooms. It is usually a fix percentage of the room rate.
The commission ranges from 10% to 30% depending of the OTA (how influential it is), on the size of the hotel and also on the popularity of the destination.
Large hotel chains usually have more negotiation power.

Comp Set - Competitive Set

What is the meaning / definition of Comp Set in the hospitality industry?

A Competitive Set (or Compset) is a group of hotels that are seen as direct competitors to your own hotel.

Complementary

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

Complementary services or products are those given to an audience / a customer without charge. This term is often used in the tourism and hospitality industry.

Consortia

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

Consortia are Associations or Marketing organizations which link together small to medium sized independent travel agencies to leverage purchasing power and marketing opportunities. Examples of Consortia are American Express, Carlson Wagonlit, BCD Travel or HRG.

CPOR - Cost per Occupied Room

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

CPOR stands for Cost Per Occupied Room.

The CPOR formula helps calculate the average cost per occupied room in the hotel. This is another KPI to measure and analyze if the operating cost for each room is reasonable.

CRO - Central Reservations Office

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

CRO stands for: Central Reservations Office.

It is a system that allows reservation agents to receive reservation requests by phone and to handle them immediately.

CRS - Central Reservations System

What is the meaning / definition of CRS in the hotel industry?

CRS stands for: Central Reservations System. It is a computerized reservation software used to maintain the hotel information, room inventory and rates, to manage the reservation and process. A CRS provides hotel room rates and availability for many different distribution channels such as the GDS, IBE, OTA, 3rd party websites etc.

CTA - Closed to Arrival

What is the meaning / definition of CTA or Closed to Arrival in the hospitality industry?

CTA stands for Closed to Arrival. It is a yield tool used to close days our from reservations arriving on a particular day.

CTD - Closed to Departure

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

CTD stands for Closed to Departure. It is a specific set of days guests cannot make their reservation for with this date as check-out.

Cut-Off

What is the meaning / definition of Cut Off in the hospitality industry?

With cut-offs (which are very similar to release dates), a hotel simply sets a time limit upon when a reservation is made, and the guest's actual arrival. Used a lot for group and tour operator business. They will hold a block or allotment in the hotel as per their contract.

They need to submit reservations before a certain date, the cut-off date, otherwise the rooms will be released back into the general inventory for the hotel to sell via other channels.

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