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Common Hotel Terminology
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Occupancy Rate
The percentage of available rooms that are occupied or sold for a certain period of time.
Overbooking
Accepting more reservations than there are available rooms, anticipating that there will be no-shows and cancellations.
Concierge
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.
Turnaway
A potential guest who is turned away from the hotel because there are no rooms available.
Attrition Rate
The percentage of rooms that were not booked from a block of reserved rooms for an event or conference.
Walk-In
A guest who arrives at the hotel without a reservation and requests a room.
No-Show
A guest who has a reservation but does not arrive or cancel the reservation.
RevPAR (Revenue Per Available Room)
A performance metric in the hotel industry that measures how much revenue is made per room available.
Back of House
The areas of the hotel where guests do not usually go, including the kitchens, laundry rooms, and staff offices.
Late Check-Out
Permission granted to a guest to check out after the usual check-out time.
Yield Management
A pricing strategy based on understanding, anticipating, and influencing guest behavior to maximize revenue or profits from a fixed, perishable resource.
Folio
A detailed list of a guest’s hotel transactions during their stay, including charges for services and amenities.
Front Office
The department or area of the hotel responsible for guest reservations, check-in/check-out, and general customer service.
Room Block
A group of rooms reserved for a particular event or group of people, such as for a conference or wedding.
Comp Set
A group of hotels that are considered to be direct competitors because they target the same customer market and have similar attributes.
GDS (Global Distribution System)
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.
City Ledger
An account where non-guest transactions are billed on a credit basis.
ADR (Average Daily Rate)
The average revenue earned from occupied rooms on a daily basis.
Housekeeping Status
A report or indication that shows the current condition of the hotel room (e.g., clean, dirty, out of order).
Upselling
Offering guests higher-priced services or room upgrades in an effort to generate more revenue.
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