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
CRS - Central Reservations System

What is the meaning / definition of CRS in the hotel industry?

CRS stands for: Central Reservations System. It is a computerized reservation software used to maintain the hotel information, room inventory and rates, to manage the reservation and process. A CRS provides hotel room rates and availability for many different distribution channels such as the GDS, IBE, OTA, 3rd party websites etc.

Synonyms: CRS, Central Reservations System
CTA - Closed to Arrival

What is the meaning / definition of CTA or Closed to Arrival in the hospitality industry?

CTA stands for Closed to Arrival. It is a yield tool used to close days from reservations arriving on a particular day.

Synonyms: CTA, Closed to Arrival, close to arrival, closed to arrivals
CTD - Closed to Departure

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

CTD stands for Closed to Departure. It is a specific set of days guests cannot make their reservation for with this date as check-out.

Synonyms: CTD, Closed to Departure, close to departure, closed to departures, close to departures
Cut-Off

What is the meaning / definition of Cut Off in the hospitality industry?

With cut-offs (which are very similar to release dates), a hotel simply sets a time limit upon when a reservation is made, and the guest's actual arrival. Used a lot for group and tour operator business. They will hold a block or allotment in the hotel as per their contract.

They need to submit reservations before a certain date, the cut-off date, otherwise the rooms will be released back into the general inventory for the hotel to sell via other channels.

Synonyms: Cut off, Cut-off
DBA - Days Before Arrival

What is the meaning / definition of Days Before Arrival in the hospitality industry?

DBA stands for Days Before Arrival.

It’s the number of days remaining before the expected arrival date of guests.

Synonyms: DBA, Days Before Arrival
DCF - Discounted Cash Flow

What is the meaning / definition of Discounted Cash Flow in the hospitality industry?

DCF stands for: Discounted Cash Flow

The term Discounted Cash Flow refers to a valuation method utilized when establishing the future value of an investment, based on the cash flow it is forecasted to generate in the future. The Discounted Cash Flow Analysis is thereby able to highlight the present value (PV) of the cash generated by an investment in the future.

Synonyms: DCF, Discounted Cash Flow
Demand

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

By Demand, we mean the level of consumer interest and need: demand for beds, demand for family rooms, demand for conferencing, event space, rentable scuba diving gear...

Demand Based Pricing

What is the meaning / definition of Demand-Based Pricing in the hospitality industry?

In the Hospitality Industry, prices for services do not have to be permanently set. They can be adjusted, depending upon how many rooms, meals, etc. are needed by customers at any a particular time. This is what Demand-Based Pricing is all about – the price of something changes depending upon how much demand there is for it at a given time.

Demand Generators

What is the meaning / definition of Demand Generators in the hospitality industry?

In hospitality, meeting demand for goods and services is not only about meeting customers' needs, whenever required; sometimes, a hotel or other type of hospitality business can create demand.

Denial

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

Well, it is quite simple. When a hotel cannot accommodate more guests, because it is fully booked at that time, then their response to the potential customers' request is called a Denial.

Design Hotel

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

Design Hotel is as the name implies hotel that is notable for its design. It is focused on the visual concept, on its architecture, on interior decoration, on aesthetics style and décor. The appearance is the main appeal of a Design Hotel and the aim is to evoce a ‘wow’ feeling in the (potential) guest. 

Direct Connect

What is the meaning / definition of Direct Connect in the hospitality industry?

Direct Connect is a synonym of Interface. A point where two systems or organisations, meet and interact.

In the tourism/hospitality industry Direct Connect is a technological connection that interchanges and synchronises data across multiple distribution channels, such as between a Hotel CRS (or PMS) and OTAs.

Direct Connect Availability

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

DCA stands for: Direct Connect Availability.

Discount Rate

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

The term Discount Rate, when used in the Discounted Cash Flow (DCF) analysis, refers to the rate by which to discount projected future cash flows. The discount rate thereby expresses the time value of money and can make the difference between whether an investment project is financially viable or not. It does this by allowing insight on the present value of expected future cash flow.

Displacement Analysis

What is the meaning / definition of Displacement Analysis in the hospitality industry?

For a hotel, the idea of making money through accepting group business bookings sounds like a good idea – an obvious thing to do.

But is that really always the case?

The answer is No!

Sometimes it would be prudent to deny a group booking in favour of leaving rooms available to transient (non-business) customers and walk-in guests. The method used to make this judgement is called Displacement Analysis.

Synonyms: Displacement Analysis, displacement calculation

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