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.
|P&L - Profit and Loss Statement||
A room rate that includes the sales of goods and services. The most common time of package rate is in an all-inclusive hotel where in the purchase of a room also include a certain amount of drinks, meals and activities during a stay.
This option is popular amongst price conscious travellers and families who want budget-friendly vacations. Other service or activities that may be included in the price is airport pickup, excursions, meal plans and other services. American or Modified American Plan are also commonly accoutred during these packages.
|PCC - Pseudo City Code||
What is the meaning / definition of PCC, in the hospitality industry?
What is the meaning / definition of Pegasus, in the hospitality industry?
Pegasus (or Pegasus Solutions) is the largest processor for electronic hotel transactions and offers distribution services to about 100.000 hotels worldwide.
|PMS - Property Management System||
What is the meaning / definition of PMS, in the hospitality industry?
PMS stands for: Property Management System. It is a local hotel administration system used for reservation, availability and occupancy management, check-in/out, images, guest profiles, report generation etc. This application is used in-house (in an individual hotel) to control the onsite property activities.
|PNR - Passenger Name Record||
What is the meaning / definition of PNR, in the hospitality industry?
PNR stands for: Passenger Name Record. It is commonly used in the travel industry and it’s basically a ‘file’ in the database of the system (GDS or CRS/ PMS) which contains information about a passenger (or a group of passengers traveling together) and his travel plans (flight itinerary, hotel booking segments, car rental bookings, etc.).
What is the meaning / definition of Pod Hotel?
Also known as Capsule Hotel, is a hotel that provides accommodation in form of a small clear capsule rooms, which are as large as a single bed. These hotels originated in Japan in the core business districts. They were originally meant for business professionals to sleep close to populated business districts without the large price tag.
What is the meaning / definition of Porterage Fee in the hospitality industry?
A fee that may be given to a group or individual guest for the use of a doorman and bellboy. This fee is commonly given to large groups in hotels, hotels with a unions and resort hotels where a gratitude is automatically charged to a guest through a porterage fee.
In some cases, a porterage fee is added even if a guest did not use the porter on arrival. Most of the time this fee cannot be wavered once added to a guest’s bill.
What is the meaning / definition of Prepaid Rate in the hospitality industry?
The term Prepaid Rate, refers to paying for the stay at a hotel in full at the time of booking, rather than at arrival or departure from the hotel. Paying the prepaid rate generally can come with large price reductions from 10% to 25% off the BAR (Best Available Rate) - which can lead to large cost savings if you plan ahead.
To receive a prepaid rate in general you have to book early, approximately 3 days in advance. The only downside of the Prepaid Rate is, that it is not flexible - meaning that cancellations will result in a fee, sometimes even in not receiving anything back from your original reservation. It is also not able to change the date or adjust the booking, after having received the prepaid rate. Further conditions might apply depending on the hotel.
What is the meaning / definition of Price Lining in the hospitality industry?
The term Price Lining, is used to describe a marketing/ pricing strategy, whereby a business prices its products according to quality, features and attributes in order to differentiate them from similar products. By doing so the company makes the distinction of quality for customers more visible. Important for this is that the price, varies enough to signal the difference - as if its kept on a similar level it can cause more confusion than assistance in purchasing decisions. This pricing strategy allows businesses to sell similar products with slight differentiation to different segments, with different budgets. Thereby the company is able to target a broader range of customers, thereby increasing sales and not missing out on customer segments.
Having such a pricing strategy in place increases the appearance of affordability and allows customers to stay with one brand with their purchasing decision, not having to make price the distinguishing factor for choosing between brands. Therefore price lining makes shopping easier for customers - as they can clearly distinguish quality differences without assistance from store managers/ employees. Price lining may apply to your Revenue Management strategy.
|Price Match Guarantee||
What is the meaning / definition of Price Match Guarantee (PMG) in the hospitality industry?
PMG is short for Price Match Guarantee. It is something that all hotels seeking to seriously compete should consider offering. What's more, consumers love it! Why? Because they can make reservations knowing that they are getting rooms and perhaps other services without paying more than absolutely necessary.
What is the meaning / definition of Price Positioning in the hospitality industry?
The term price positioning, describes the process of adapting your price towards the position you want your products and services to represent in the market. It is a marketing strategy in which you attempt to create a "position" for your brand in the minds of your target customers that according to the price is consistent to your positioning. When choosing the price you should therefore consider the following criteria:
- Compelling to the target customers
- Differentiated from competitors
- Brands can be positioned on different attributes such as functional benefits, emotional benefits, self-expressive benefits, heritage, personality and sensory assets.
A different position and a different pricing result in the targeting of a different consumer segment. Price being a strong constrainer to demand, it must be chosen wisely what position in the market your choosing to take, if you product is worth this price and if it can compete with other products in this price range. It is therefore highly important to asses your competitors position, first before making a decision on pricing, as if the value your offering to your clients to this price point of so lesser value then of your competitors - you will have encounter issues in the long-term.
One way to position your company, in comparison to your competition is by using a price matrix. Below you can see how in the hospitality industry hotels may decide to differentiate themselves.