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
IATA - International Air Transport Association

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

IATA stands for: International Air Transport Association. It is a trade association of airline companies which operates international services and establishes standard practices.

Synonyms: International Air Transport Association, IATA
IDS - Internet Distribution System

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

IDS stands for: Internet Distribution System.
This term is generally used to express the hotels distribution via Internet, Intranets, Extranets and other online services.

Synonyms: Internet Distribution System, IDS
Incentive Fee

What is the meaning / definition of Incentive Fee in the hospitality industry?

The term Incentive Fee is used to describe a fee that incurs to an investor when his/her fund manager is able to establish returns, above a suggested benchmark initially established. Incentive Fees are set to encourage fund managers to strive for higher returns. While higher returns may be one positive aspect incurring from the Incentive Fee, the fee also encourages rather risky investments. The issue here is that often the fund managers are not held responsible for the losses, only for the gains. This may therefore lead to investments which aren't fully in line with the investors best interests.

Synonyms: Performance Fee
Independent Hotel

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

An Independent Hotel is a hotel that is independently owned and run. It doesn’t allow any other proprietors to use its name / brand.

Interface

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

Interface is the crossing point or technical connection between different IT systems. In other words it is the direct communication/ connection between two (or more) networks/ applications/ systems that can be interlinked together without any intermediary.

Inventory

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

The number of rooms available for a hotel to sell or distribute across all channels is called an Inventory.

IRR - Internal Rate of Return

What is the meaning / definition of Internal Rate of Return in the hospitality industry?

IRR stands for: Internal Rate of Return.

The Internal Rate of Return is a financial indicator, used to determine the attractiveness of an investment or project. It can be defined as the percentage rate earned on each dollar invested, in a defined period of time. It compares expected cash flow of a project to the cost of the capital involved.

Synonyms: IRR, Internal Rate of Return
Key Performance Indicators - KPI

What are the most commonly used Key Performance Indicators in the Hotel or Hospitality Industry?

Here is a series of examples ofthe main Key Performance Indicators to monitor and to benchmark the performance of the different departments in a hotel.

Synonyms: KPI, key performance indicator, key performance indicators
KPI - Key Performance Indicator

What is the meaning / definition of KPI / Key Performance Indicators in the hotel industry?

KPI is an acronym for: Key Performance Indicator

KPI includes a set or ratios and formulas that help calculate and indicate the performance and progress of a hotel accordingly to their plans and actions.

Synonyms: KPI, Key Performance Indicator, Hotel KPI
LCR - Local Company Rate

What is the meaning / definition of Local Company Rate in the hospitality industry?

LCR is short for Local Company Rate.

Hotels sometimes agree a special rate with a local company, as that can be good for business in both the short and long term.

Synonyms: LCR, Local Company Rate
Lead Time Restriction

What is the meaning / definition of Lead Time Restriction in the hospitality industry?

At a hotel, the time taken between when a customer makes a reservation and their actual arrival is called the Lead Time. Sometimes this time period has to be restricted.

Lifestyle Hotel

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

Similar to a boutique or a luxury hotel, a Lifestyle Hotel is not a ‘proper hotel category’ but can be defined through specific characteristics. Those characteristics are similar to a boutique hotel. They are both unique in their character and very distinctive. The attributes associated with a Lifestyle Hotel are: quirky, cutting-edge, avant-garde, trendy, funky, charming.

LOS - Length of Stay

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

LOS stands for Length of Stay. Figure derived by dividing the number of room nights by the number of bookings.

When it comes to revenue management, LOS is an important criteria. It can help enormously with the organising and optimisation of occupancy within a hotel.

There a different types of LOS, in fact.

Synonyms: Length of Stay
LRA - Last Room Availability

What is the meaning / definition of Last Room Availability (LRA) in the hospitality industry?

LRA is short for Last Room Availability. At the contracted rate, an agent can book the last room a hotel has available, by right. Some people may be surprised by this, thinking that a hotel has complete control over room booking decisions at their premises, at all times. But, because of LRA, this is not necessarily always the case!

Synonyms: LRA, Last Room Availability
Luxury Hotel

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

A Luxury Hotel is considered a hotel which provides a luxurious accommodation experience to the guest. There are no set standards (such as stars) for luxury hotels. Often 4 or 5 star hotels describe themselves as ‘luxury’.

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