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.
Adopting a laser-focused approach to selling hotel rooms can be pivotal in achieving excellent occupancy levels, and therefore outstanding profits year-on- year. Marketing towards a specific audience, rather trying to sell to everyone (and being, as we say in the Hospitality Industry, 'all over the map'!) can help enormously when it comes to maximising revenue.
|Time based pricing||
What is the meaning of time based pricing in the hospitality industry?
The term time based pricing refers to a method of pricing that charges its customers according to time. This stands differs from value based pricing - whereby the company charges its customers according to value delivered. The Time-Based Pricing Method is the standard in the tourism industry where customers are charged per night. Whereby prices fluctuate depending on what time they are being booked. With higher prices are charged during peak season, or during high demand times (conference and events).
Outside of the hospitality industry, in consultancy for example Time based pricing might not always be the best option as the faster you work, the less you get paid. Thereby the client will always want you to work less - while the organisation aims to take longer as thereby revenues increase. With opposite goals, this is a affair heading for doom. Clients will be less inclined to contact you for your services as it will cost them for every minute.
|Time per Table Turnaround||
What is the meaning / definition of Time per Table Turnaround in the hospitality industry?
The term, Time per Table Turnaround refers to a metric used to assess the time it takes a customer group utilising a table/ space from the moment they sit down to the moment they paid the bill and leave.
In total revenue management and the restaurant business it becomes important to measure this indicator. With a restaurant that makes low turnover per customer it is in the restaurants interest to reduce the time each customer spends in the restaurant. If not you may be left with a full restaurant and customers come to stay for multiple hours after only having one or two drinks.
What is the meaning / definition of Timeshare in the hospitality industry?
A timeshare (sometimes called vacation ownership) is a property with a divided form of ownership or use rights. It is thereby often owned by multiple parties, whereby each owner has rights and access to the apartment at a different time of the year.
This turns out cheaper when compared with the cost of all year ownership and maintenance of a property. Typically this sort of accommodation is located in resort condominium units. The concept allows people who could not normally afford a second home, a vacation spot for the same time every year.
What is the meaning / definition of Total Revenue in the hospitality industry?
Total Revenue is the total amount of Revenue coming from all operational departments in a business. Total Revenue is the most common indicator with any business as it allows an insight into a company's overall performance, market size etc.
Total Revenue can be generally be found at the top of any income statement.
|Total Revenue Management||
What is the meaning / definition of Total Revenue Management in the hospitality industry?
Total Revenue Management is a much-discussed concept in hospitality, but in reality it has produced a great deal of confusion. Put simply, it is the revenue management of all revenue sources in a hotel. From your RevPAR and GOPPAR to the hotel restaurant, and from the bar, spa and gym to activities and excursions, it encompasses every single hotel income stream.
This strategy implies that revenue management is applied to every department of a hotel. For example, the F&B, function spaces, SPA, golf, etc. The goal is to optimise profits of each department, by maximising the revenue and the costs associated.
What is the meaning / definition of Transient in the hospitality industry?
At most hotels, guests fall into two main categories: group and non-group. Amongst the non-group category are Transient Travellers: these are guests who are predominantly on-the-move and seek short (and often urgent!) hotel-stays.
What is the meaning / definition of Travel Agent in the hospitality industry?
Travel Agent is a person whose job it is to arrange travel for end clients (individuals, groups, corporations) on behalf of suppliers (hotels, airlines, car rentals, cruise lines, railways, travel insurance, package tours). His task is to simplify the travel planning process for their customers in addition to providing consultation services and entire travel packages.
What is the meaning / definition of TREVPAR in the hospitality industry?
TREVPAR stands for: Total Revenue Per Available Room
It is a hotel KPI that gives a preview of the total revenue from all departments which the room can generate. While RevPar only takes account of the revenue generated by the rooms.
What is the meaning / definition of TREVPEC in the hospitality industry?
TREVPEC stands for: Total Revenue Per Client
It is is a very favourable KPI metric to calculate the total revenue generated per customer. It is also taking into account double and family occupancy factors.
|TRevPOR - Total Revenue per Occupied Room||
What is the meaning / definition of TrevPOR in the hospitality industry?
TRevPOR stands for: Total Revenue Per Occupied Room
TRevPOR considers total 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.
What is the meaning / definition of Turnaway in the hospitality industry?
Sometimes, a hotel simply cannot accommodate a guest who has already made a reservation. Having to treat such a guest as a Turnaway can happen at any time of year, but this usually occurs during a certain period and for a compelling reason or reasons.