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Common Hotel Terminology

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Occupancy Rate

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The percentage of available rooms that are occupied or sold for a certain period of time.

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ADR (Average Daily Rate)

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The average revenue earned from occupied rooms on a daily basis.

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RevPAR (Revenue Per Available Room)

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A performance metric in the hotel industry that measures how much revenue is made per room available.

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No-Show

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A guest who has a reservation but does not arrive or cancel the reservation.

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Walk-In

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A guest who arrives at the hotel without a reservation and requests a room.

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Overbooking

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Accepting more reservations than there are available rooms, anticipating that there will be no-shows and cancellations.

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Room Block

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A group of rooms reserved for a particular event or group of people, such as for a conference or wedding.

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Upselling

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Offering guests higher-priced services or room upgrades in an effort to generate more revenue.

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Folio

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A detailed list of a guest’s hotel transactions during their stay, including charges for services and amenities.

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Housekeeping Status

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A report or indication that shows the current condition of the hotel room (e.g., clean, dirty, out of order).

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Turnaway

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A potential guest who is turned away from the hotel because there are no rooms available.

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Late Check-Out

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Permission granted to a guest to check out after the usual check-out time.

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Comp Set

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A group of hotels that are considered to be direct competitors because they target the same customer market and have similar attributes.

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Yield Management

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A pricing strategy based on understanding, anticipating, and influencing guest behavior to maximize revenue or profits from a fixed, perishable resource.

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City Ledger

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An account where non-guest transactions are billed on a credit basis.

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Back of House

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The areas of the hotel where guests do not usually go, including the kitchens, laundry rooms, and staff offices.

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Front Office

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The department or area of the hotel responsible for guest reservations, check-in/check-out, and general customer service.

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Concierge

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Hotel staff member responsible for assisting guests with various tasks such as making restaurant reservations, arranging for spa services, recommending nightlife hot spots, and much more.

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GDS (Global Distribution System)

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A worldwide computerized reservation network used as a single point of access for reserving airline seats, hotel rooms, rental cars, and other travel-related items by travel agents, online booking sites, and large corporations.

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Attrition Rate

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The percentage of rooms that were not booked from a block of reserved rooms for an event or conference.

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