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.
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 every room in a hotel. No. With rack rate setting it is essential to apply a different rate to each room category, otherwise occupancy (and therefore revenue) could be adversely affected.
What is the meaning / definition of Rate Fences in the hospitality industry?
Fences are rules that apply to rates. Meaning that to book a certain rate, there will be specific conditions that will apply to your reservation.
What is the meaning / definition of Rate Parity in the hospitality industry?
All individual hotels and hotel chains should seek to engender a positive affective commitment towards their brand. But loyalty felt by guests can, of course, take time to build up. One great way to foster allegiance over time is to build Rate Parity into a pricing structure. In fact, a revenue management team that fails to recognise the benefits of Rate Parity is making a mistake and should think again. Why? Well, let's begin answering that by explaining more what Rate Parity actually is, before moving on to giving a clear example...
What is the meaning / definition of Regret in the hospitality industry?
Sometimes reservations just don't work out. For whatever reason, prospective guests decide to cancel a booking, or not to complete it in full. This is especially common where bookings are made online, where it is so easy to click off a web page and look elsewhere on the Internet for a perhaps better (lower priced) deal.
What is the meaning / definition of Representation Company, in the hospitality industry?
Representation Company is a company that manages either the entire hotel or an outlet at the hotel on behalf of the property. As part of outsourcing, a representation company can be on-site or off-site, depending on the needs of the hotel.
What is the meaning / definition of Resort Hotel in the hospitality industry?
A Resort Hotel is a is a full service lodging facility, intended primarily for vacationers and usually located in places frequented for relaxation or recreation, such as beaches, seashores, scenic or historic areas, ski parks, spas.
What is the meaning / definition of Revenue Management in the hospitality industry?
Running a successful hotel does not simply involve selling as many rooms as possible in any given trading gear, in a kind of random first-come-first-served way with a 'hope for the best' atmosphere surrounding things. No. The key to achieving sustained success in the Hospitality Industry is to be hard working, organised and to work to a well-orchestrated strategy formulated and managed by experienced professionals.
|Revenue Management Formulas||
|Revenue Management Strategy||
What is the meaning / definition of Revenue Management Strategy in the hospitality industry?
Although at all hotels Revenue Management is essential, that doesn't mean it is easy! An individual or team responsible for managing revenue at a hotel, or maybe even across several hotels that are part of an international chain, will find relief in having a Revenue Management Strategy to refer to when dealing with problems and tackling unexpected issues, and of course when seeking to maximise profits through achieving full occupancy at the highest possible rate all year round (every hotel manager's dream).
What is the meaning / definition of REVPAM in the hospitality industry?
REVPAM stands for: Revenue Per Available Square Meter
It is a KPI relevant for hotels which rent out its space for conferences and banquets. The utilization efficiency of the sales department is calculated on the revenue per available square meter of the banquet space.
|REVPAR - Revenue per available room||
What is the meaning / definition of REVPAR in the hospitality industry?
REVPAR stands for: Revenue Per Available Room
RevPar is a very classic KPI and regarded as one of the most important financial calculations for any hotel to see how much revenue they have made within a certain period of time.
What is the meaning / definition of REVPASH in the hospitality industry?
REVPASH stands for: Revenue Per Available Seat Hour
REVPASH as a revenue management tool for food and beverage outlets in a hotel (similar to RevPar for Rooms). This calculation is useful to measure the usage and revenue of a seat per hour and it allows a better understanding and planning for the food and beverage manager. Restaurants take reservations but walk-in guests are commonly expected during opening hours.
What is the meaning / definition of REVPATH in the hospitality industry?
RevPath stands for: Revenue Per Available Treatment Hour
RevPath is a calculation for Spa operations that takes measure to a more detailed level, given the need to “turn over” of rooms during the day. It is very similar to RevPar for Rooms. It helps the spa operation to manage time effectively.
What is the meaning / definition of REVPOR in the hospitality industry?
RevPOR, unlike RevPAR, considers revenue per occupied room which gives you a better understanding of how much profit you make from the guests who actually stay at your property.
|RFP - Request For Proposal||
What is the meaning / definition of RFP, in the hospitality industry?
RFP stands for Request for Proposal and is a formal solicitation for bids on business from suppliers that are interested in providing a commodity, service or valuable asset to the hotel.