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
Rack Rate

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.

Property

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

Property is such a general term, isn't it? Domestic property, commercial property, property for sale, rented property, lost property!

PROFPAR

What is the definition of PROFPAR in the hospitality industry?

PROFPAR stands for: Profit Per Available Room

PROFPAR is a KPI calculation of profit earnings for each room available in the hotel. PROFPAR is based on operating profit, which accounts for movements in both revenues and expenses.

Synonyms: Profit per available room, profpar
Private Label Chain Code

What is the meaning / definition of Private Label Chain Code, in the hospitality industry?

Private Label Chain Code is a 2-letter code, which is used mainly by the GDS to identify chain operated hotels. Similar to a 3-letter code used in the aviation to identify airports, many hotel chains and hotel groups have their own Private Label Chain Code.

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.

Preferred Placement

What is the meaning / definition of Preferred Placement, in the hospitality industry?

Preferred Placement means an enhanced visibility for hotels on travel agent terminals (through GDS) and on internet travel sites (through ranking strategies).

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.).

Synonyms: PNR, Passenger Name Record
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.

Synonyms: PMS, Property Management System
Pegasus

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.

PCC - Pseudo City Code

What is the meaning / definition of PCC, in the hospitality industry?

PCC stands for Pseudo City Code and is a GDS code, used to identify the location of a travel agency.

Synonyms: PCC, Pseudo City Code
Packaging

What is the meaning / definition of Packaging, in the hospitality industry?

Packaging is a common marketing strategy that involves offering several products for sale together. The price is usually bundled together so there is no transparence to the individual rates of the separate products.

Overbooking

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

Sometimes it can be necessary for a hotel to sell more rooms than it actually has available. To those unfamiliar with the internal workings of the Hospitality Industry, which is always influenced by and somewhat vulnerable to the vicissitudes of the global economic climate, that may sounds strange. But experienced hoteliers will tell you that selling rooms/spaces that you don't have – Overbooking – can sometimes be the only way to protect a hotel from diminished revenue due to unexpected cancellations, no-shows or booking errors.

OTA

What is the meaning / definition of OTA, in the hospitality industry?

OTA stands for: Online Travel Agency.

OTAs are online companies whose websites allow consumers to book various travel related services directly via Internet.
They are 3rd party agents reselling trips, hotels, cars, flights, vacation packages etc. provided / organised by others.

Synonyms: OTA, online travel agency
Open Pricing

What is the meaning / definition of Open Pricing in the hospitality industry?

The great thing about pricing by most hotels around the globe is that nothing is set in stone. That is, there can be flexibility where prices have to sometimes be pitched at differing levels, according to the various target markets and distribution channels involved. This pricing approach, known in the Hospitality Industry as Open Pricing, is an ideal option for hotels operating independently, but it can also be an adopted method for entire hotel chains and groups!

Opaque Sites

What is the meaning / definition of Opaque Sites, in the hospitality industry?

Opaque Sites are booking channels and OTA websites where the supplier (in this case the hotel) remains hidden until after the purchase is complete. The customer sees only the product category (destination, star rating of the hotel) and the price but not the brand. After paying, the website will reveal the name of the hotel. Usually it doesn’t accept refunds, changes or cancellations.

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