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
Competition Based Pricing

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

The term competition based pricing, also known as competitive pricing refers to the process of a company pricing its product/ service (in hotels rooms, food & beverages) according to the competitors. Competition Based pricing should be part of your Revenue Management Strategy

In industries which have preceded in the industry life cycle competition based pricing often forces smaller uncompetitive companies into bankruptcy. In general, competitive pricing often occurs when many companies are offering similar products or services to their market. When this happens and companies aren't able to differentiate themselves from their competitors the last factor they can adjust to win customers is price. Therefore, this type of pricing is rather a last resort - especially for hotels - as they should aim to differentiate themselves by their offerings, whereby they can charge a premium for their service.

Therefore, this rather happens with commodities or products that have less "status" differentiation. In the luxury hotel market for example, competition based pricing may actually hurt the hotel in the long-term as their clientele actually chooses for them due to their price being related to their exceptional offerings.

On the other hand, Budget hotels & hostels deal with price sensitive clientele whereby the price stands in the foreground. These establishments are able to increase demand easily by lowering their price as customers are "hunting" for bargains. Therefore, within highly competitive cities budget hotels are constantly orienting themselves on their competitors. This drives down prices, in favour of the consumer.

Competition based pricing comes with advantages and disadvantages for companies, following this pricing strategy.

Complimentary

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

Complimentary services or products are those given to an audience / a customer without charge. This term is often used in the tourism and hospitality industry.

CompSet - Competitive Set

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

A Competitive Set (or CompSet) is a group of hotels that are seen as direct competitors to your own hotel.

Synonyms: Competitive Set, compset
Conference Sales Manager

What is the meaning / definition of Conference Sales Manager in the hospitality industry?

A conference sales manager is a manager at a hotel, who is in charge of advertising and selling events at the hotel’s conference. The conference sales manager’s duty is to sell available space to interested parties. As such a manager also needs to research the level of interest in their hotel’s conference rooms. Thereafter the conference sales manager can distinguish dates on which conferences can be held.

The Conference Sales Manager reports to the Director of Sales. Success as a conference sales manager depends on the strength of the relationships built with event organisers and local companies. This can enhance the product offering as well as the level of service provided to conference attendees.

Consortia

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

Consortia are Associations or Marketing organizations which link together small to medium sized independent travel agencies to leverage purchasing power and marketing opportunities. Examples of Consortia are American Express, Carlson Wagonlit, BCD Travel or HRG.

Constrained demand

What is the meaning / definition of Constrained demand in the hospitality industry?

The term constrained demand refers to demand being severely restricted in activity. It is used in the hospitality industry - in revenue management - when referring to demand forecasts.

To understand constrained demand you must first understand unconstrained demand. Unconstrained demand is your hotels total demand for a particular date irrespective of your capacity. Hotels should identify when unconstrained demand is above the capacity of the hotel. This is an important part of your hotel revenue management strategy.

Continental Breakfast

What is the meaning / definition of Continental Breakfast in the hospitality industry?

A continental breakfast is a mix between British and French breakfasts that have been adapted for American tastes. It is therefore popular in continental Europe, North America and other westernised hotel chains around the world - as it easily matches the common tastes, thereby avoiding the disappointing of "picky eaters". For people with sensitive stomachs it allows to avoid product that are unknown to them when in a foreign country. Another perk of this breakfast, besides the simplicity and widely availability of it, is that it is usually included in a rooms price or comes at an additional modest price.

It usually includes a beverage, bread product with butter, jam, honey or marmalade. The beverage is a morning type drink like coffee, tea, milk or fruit juice. While the bread product can be a croissant, pastry, bread, bagel, waffle or another type of roll. Depending on the hotel, the breakfast may include additional items like, cereal, eggs, cheese and meat products. The most common meat products served in this type of breakfast is bacon, ham or sausage.

Country House Hotel

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

Country house hotels is a term used to describe a specific type of accommodation in the hospitality industry. As the name states a country house hotel, is a hotel located in the country side, which appears more as a home than as a hotel. Country house hotels thereby differentiate themselves from ordinary hotels by providing a more local and intimate experience. Being located in a non-generic building can remind guest more of a being in a home than a hotel. This type of accommodation allows guest to experience a country from a more local perspective.

CPOR - Cost per Occupied Room

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

CPOR stands for Cost Per Occupied Room

The CPOR formula helps calculate the average cost per occupied room. This is another KPI to measure and analyse if the operating cost for each room is reasonable.

Synonyms: Cost Per Occupied Room, CPOR
CRO - Central Reservations Office

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

CRO stands for: Central Reservations Office.

It is a system that allows reservation agents to receive reservation requests by phone and to handle them immediately.

Synonyms: CRO, central reservations office
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

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