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 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.
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.
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.
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).
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.
|Early Bird Discount||
What is the meaning/definition of Early Bird Discount in the hospitality industry?
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).
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.
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:
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.
|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
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.
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.