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.

Search for glossary terms (regular expression allowed)
Begin with Contains Exact termSounds like
Term Definition
Distressed Inventory

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

Distressed inventory is used in hotels to refer to rooms that are not expected to be sold at full price. For these rooms, hotels often significantly reduce prices to encourage consumers to book last-minute and to avoid their rooms going unoccupied.

Distribution Strategy

What is the meaning / definition of Distribution Strategy in the hospitality industry?

Distribution Strategy determines when and through which channels to sell hotel rooms based upon an analysis of the costs of acquisition of the individual channel.

All of the costs of acquisition of each individual channel will be considered and calculated before the hotel finalizes the list of channel distribution they will be using.
By using the right channel of distribution and driving business to more cost-efficient channels during high demand periods hotels can maximise their profitability.

Dynamic Packaging

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

Dynamic Packaging is a method of creating deals or packages based upon the components selected by the customer.

This method combines inventory (rates and availability) from multiple sources e.g., hotels, rental cars and flights in one online application. It allows the customers to create and book a customized itinerary resulting in a higher flexibility compared to pre-packaged holidays.

 

Synonyms: packaging, dynamic packaging
Dynamic Pricing

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

Successful hotels around the world aim for optimum profitability at all times. There are lots of things a hotel can do towards achieving this. One is for the Revenue Management Team to make Dynamic Pricing part of their overall strategy. Consortia/negotiated rates are no longer fixed (in some cases).

E-commerce

What is the meaning / definition of E-commerce in the hospitality industry?

E-commerce is also known as Electronic Commerce (or EC). It refers to commercial transactions conducted electronically on Internet. It means basically any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact.

Synonyms: e commerce, e-commerce, ecommerce
Early Bird Discount

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

Hotels can increase advanced bookings by offering something called an Early Bird Discount. This is a type of promotion that many hotels across the world use to increase revenue.

Synonyms: Early Bird Discount, early bird
EBITDA

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

EBITDA stands for : Earnings Before Interest, Taxes, Depreciation and Amortization.

This KPI is used to determine how profitable a company or business is with regard to its operations (the profit on the products it produces and sells).

EBITDAR

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

EBITDAR stands for: Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent

It is the same calculation as EBITDA, with the exception that rents and/or restructuring costs are excluded from the expenses.

ED - Electronic Distribution

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

ED stands for: Electronic Distribution (also called online distribution). It is a type of distribution that uses purely electronic media. E-distribution is an important component of E-commerce.

Synonyms: ED, Electronic Distribution
Extranet

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

An Extranet is a website that allows controlled access to partners, vendors and suppliers or an authorised set of customers. In other words it is a channel which can be administered externally via a login into the system.

Fair Market Share

What is the meaning/definition of Fair Market Share in the hospitality industry?

Fair Market Share is an indication that a hotel’s overall performance stacks up against its immediate competitors.

A hotel within a competitive set can work out if it’s getting its Fair Market Share through a simple calculation:

  • Fair Market Share = Total number of rooms at the hotel / Total number of rooms in the comp set
Fam Trip

What is the meaning / definition of FAM Trip in the hospitality industry?

The term FAM stands for Familiarisation. The Tours - commonly known as FAM Trips - are trips organised by travel providers (can be a Tour Operator, an Airline, a Hotel Chain, a Tourism Board or other DMOs representing a Destination, etc.) with the purpose of educating about their products & services and promoting them.

Synonyms: Fam Tour, farm trip
FC - Fixed Costs

What is the meaning / definition of Fixed Costs in the hospitality industry?

Fixed Costs, abbreviated as FC, are costs which are invariable, meaning they stay relatively constant in value despite changes in production or sales rates. Fixed Costs, mixed costs and variable costs make up the total costs at any business. In the hospitality industry Fixed Costs make up a large percentage of total costs incurring, as hotels require many expensive assets such as buildings, technology, furniture and equipment. Successful Hotel Operators are able to reduce Fixed Costs, thereby increasing profitability for hospitality businesses

Synonyms: Invariable Costs, FC, Fixed Costs
Feeder City

What is the meaning / definition of Feeder City in the hospitality industry?

The term Feeder City refers to cities of origin which feed travelers to hubs or gateway cities. Basically it is to determine where does the tourism come from.

Fenced Rate

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

The term Fenced Rate refers to reservations that offer certain benefits for bookers: under some conditions and requirements.

Amsterdam - Bangkok - Barcelona - Brussels - Dubai - Jakarta - London - Miami - New York - Paris

Xotels Ltd., Zandvoortselaan 10, 2042 XA Zandvoort, The Netherlands
Chambers of Commerce, Haarlem - the Netherlands, Nr: 34 24 13 54

Our Partners: HotelScienz - Veturi Hotels - Vojo-Ventures

Aggregated Rating Score


Don't miss a thing!
Subscribe to our blog

Sign Up ! Get the latest tips and trends from our blog

Please complete this form to create an account, receive email updates and much more.
Contact Email  *
Name 
You can sign up to receive email updates from topics that may interest you.
*Required Fields