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 Markup in the hospitality industry?
|MaxLos - Maximum Length of Stay||
At a hotel, sometimes the number of nights an individual guest, couple or family can stay has to be limited, even if the hotel is intensely focused upon maximising revenue! This can apply to a group booking, too, particularly if arrival is planned for a certain date and where a group booking discount has been offered and availed of.
What is the meaning / definition of OTA Merchant Model in the hospitality industry?
In hotel revenue management when talking about a Merchant Model, we are referring to the commercial model of an OTA (online travel agency). The main characteristic of a Merchant Model OTA is that the guest pays the OTA at the time of booking a room, and the OTA afterwards pays the hotel when the actual stay occurs.
|MinLOS - Minimum Length of Stay||
At hotels, the number of nights a guest can stay is not necessarily always up to the paying customer, even if they have lots of money to spend on both rooms and in-house serves, such as food, beverages and recreational activities! Often, a hotel will seek to control the number of nights an individual, couple, family or group book in for, for various reasons.
|MPI - Market Penetration Index||
What is the meaning / definition of MPI in the hospitality industry?
MPI stands for: Market Penetration Index
What is the meaning / definition of Negotiated Rate in the hospitality industry?
Companies that regularly use a particular hotel naturally seek a more competitive or economic prices for rooms, meeting rooms and exhibition spaces. Although this may sound bad for business from a hotel's point of view, if the company in question makes regular bookings, the shortfall in revenue can be made up overall across a trading year. Therefore it is often in a hotel's interests to negotiate rates with companies and organisations. The simplest way to do this is to integrate a Negotiated Rate option into a hotel's overall pricing structure and strategy.
What is the meaning / definition of Net Rate in the hospitality industry?
In hotel distribution we work with many rate levels. Room inventory is sold via some third party distributors at prices that are subject to commission. Others negotiate a (sometimes lower) price with the hotel that does not include a commissions. Such a rate is called a Net Rate.
What is the meaning / definition of Net Revenue in the hospitality industry?
The term Net Revenue, also known as net income can be found at the bottom of every income statement. Net means free from all deductions and revenue refers to the income generated by organisation. To calculate Net Revenue, first add all of the expenses listed on your income statement such as materials, fees, rent, transportation, office supplies, utilities and taxes together. Thereafter, subtract the sum of these expenses from the total revenue to find your net income.
|NGS - Next Generation Seamless||
What is the meaning / definition of Next Generation Seamless, in the hospitality industry?
NGS stands for: Next Generation Seamless.
What is the meaning / definition of No-Show in the hospitality industry?
If a guest fails to arrive on a certain date to fulfil a booking (as all so often happens!) and does not cancel; that does not necessarily mean the hotel will lose money. No. Hotels can cover themselves for this eventuality by integrating into their pricing structure something called a No-Show fee. That's right, in the Hospitality Industry, a person who does not arrive where and when they should at a hotel or motel, and makes no explanatory contact, is called a No-Show.
|NOP - Net Operating Profit||
What is the meaning / definition of NOP in the hospitality industry?
NOP stands for Net Operating Profit, also known as NOI (Net Operating Income). It is a KPI / calculation of net operating income / profit after subtracting all of the operating expenses from the revenues generated by a hotel.
|NPV - Net Present Value||
What is the meaning / definition of Net Present Value in the hospitality industry?
NPV stands for: Net Present Value
It is a financial indicator used for evaluating investments. Basically, it represents the income that will result from the investment, minus all the costs. It also takes into account the discount rate and thereby the time value of money, meaning the depreciation of the value of costs and incomes in the future.
Thanks to this, investors can measure if the investment is viable or not. If the choice remains between two investments, with the same NPV, the IRR is able to assist in making the final call.
|NREVPAR - Net REVPAR||
NREVPAR stands for: Net Revenue Per Available Room
NREVPAR metric is similar to RevPAR, except that it factors in the net revenues (meaning that it accounts for distribution costs, transaction fees and travel agency commissions).
|OBE - Online Booking Engine||
What is the meaning / definition of OBE, in the hospitality industry?
OBE stands for Online Booking Engine.
It is an online application which allows to chose from a wide range of travel products (hotels, air tickets, conference halls etc.) and book them on the Internet.