A

Analytical Market Segmentation

A method that uses data from existing reservations to determine the best possible market division. This allows predictions and optimizations to maximize revenue and helps generate important reports that meet a company’s information needs.

Artificial Intelligence (AI)

A scientific discipline that enables machines to perform tasks traditionally carried out by humans.

Average Daily Rate (ADR)

The daily average room rate, calculated as the actual daily room revenue divided by the total number of rooms sold.

Average Length of Stay (ALOS)

An important variable influencing hotel profitability. The ALOS metric is useful for pricing decisions.
Formula: ALOS = Total number of overnight stays / Number of bookings.

Average Rate Index (ARI)

A benchmark that compares a hotel’s room rates to its market. An ARI above 100 indicates that the hotel’s average prices are higher than those of its competitors.

B

Best Available Rate (BAR)

The lowest publicly available, non-contracted rate offered to all guests. This rate can change several times a week or even per day.

Booking Curve

A graphical representation of the pace at which bookings are made before the arrival date.

Booking Engine

A system that enables reservations directly on a hotel’s own website. More informations.

Booking Pace

The speed at which bookings are made between the reservation date and arrival date, often expressed as a fraction of bookings received within a given lead time.

Booking System

The software that allows guests to book rooms online. It manages availability, rates, and booking confirmations.

Booking Window

The period between the time a reservation is made and the actual arrival date.

Business Mix

The combination of different market segments occupying a hotel’s rooms, expressed as a numerical value or percentage of occupancy.

C

Central Reservation System (CRS)

A system that maintains hotel information, rates, and availability, and manages reservations for one or multiple hotels.

Channel Management (CM)

The process of managing room inventory and rates across all distribution channels, including OTAs and GDS. More informations.

City Tax

An additional fee charged by hotels in certain cities, paid per person and night to fund municipal services and tourism initiatives.

CMS (Content Management System)

A platform used to create, edit, and manage website content such as text, images, and videos. Common CMS platforms include TYPO3, WordPress, and Joomla. Viato uses its own CMS.

Composite Room (Component Room)

A combination of physical guest rooms configured to meet various guest needs, such as connecting or adjoining rooms.

Cost of Walk (COW)

The cost incurred when a hotel cannot accommodate a guest with a confirmed reservation, including alternative accommodation, transportation, meals, and potential lost business.

Corporate Identity (CI)

The sum of all characteristics that make a company unique and distinguish it from competitors. It includes corporate culture, corporate design (e.g., logo),and corporate communication.

Customer Relationship Management (CRM)

A system for managing customer interactions and sales processes to improve business relationships and customer retention.

Cut-off Date

A set date when unsold group rooms are released back into inventory for general sale.

D

DeHoGa

The German Hotel and Restaurant Association representing the interests of the hospitality industry toward policymakers.

Demand

The expected business volume for a future period, based on market and booking data.

Displacement Analysis

The evaluation of potential group business against individual business that may be displaced by accepting the group.

Dynamic Pricing

Flexible price setting based on market demand and supply fluctuations.

E

Earnings Science

The application of advanced mathematical models and industry-specific expertise to convert data into accurate, automated, and revenue-enhancing decisions.

F

F&B (Food and Beverage)

The hotel department responsible for food and drink services. Alongside Front Office and Housekeeping, it is one of the hotel’s largest departments.

Fenced Rates

Differentiated offers that provide guests with various options depending on the restrictions they accept. Examples include non-refundable or prepaid bookings.

Full Board

An accommodation plan that includes three meals per day for the duration of the stay.

Full Pattern Length of Stay (FPLOS)

A model indicating whether a specific rate is available for the desired arrival date and length of stay.

G

Global Distribution System (GDS)

Comprehensive platforms used by travel agencies to book travel services, including flights, car rentals, and hotel rooms, for their clients.

Gross Operating Profit Per Available Room (GOPPAR)

A key metric calculated as total revenue minus operating and marketing expenses, divided by the total number of available rooms.

Gross Revenue Performance

The assessment of total hotel demand across all revenue sources to determine which business mix delivers the highest overall value.

H

Half Board

An accommodation plan that includes breakfast and dinner but excludes lunch.

Hospitality Sales & Marketing Association (HSMA) Germany e.V.

A professional association for the hospitality industry in Germany, providing a network of over 1,600 members and a knowledge base covering all relevant disciplines.

I

IBE (Internet Booking Engine)

An online application for booking travel and accommodation services in real time. It provides up-to-date rates and availability and enables direct bookings and instant confirmations.
More informations.

Individual Business

Guests who book individually rather than as part of a group.

Individual Demand

The expected business volume from market segment groups for individual bookings.

J

Joint Venture

A collaboration between two or more companies to jointly develop and operate a hotel project, with each partner contributing resources and expertise.

K

Key Performance Indicator (KPI)

Performance metrics used to measure the success of achieving specific objectives, such as ADR, RevPAR, GOPPAR, and occupancy rate.

L

Last Room Value (LRV)

The maximum revenue a hotel can earn from selling its last available room. LRV acts as a control mechanism to prevent underpricing during high demand.

Lead Time

The time between a booking being made and the guest’s arrival. It helps hoteliers forecast booking trends and adjust revenue management strategies.

Length of Stay (LOS)

The number of nights a guest stays in the hotel.

Limited Data Build (LDB)

A service for newly opened hotels using IDeaS RMS, allowing them to perform analysis even without extensive historical data.

M

Machine Learning (ML)

A subset of artificial intelligence in which algorithms learn from data and experience to make better predictions over time.

Management by Exception

An approach in revenue management that uses technology to automate routine tasks and draw attention to key issues that require human decision-making.

Market Intelligence

Market data used to monitor booking trends, competitor pricing, and guest reviews for strategic decision-making.

Market Segment (MS)

A group of customers categorized according to specific purchasing behaviors and usage patterns.

Market Segment Group (MSG)

A collection of market segments grouped by similar patterns or pricing.

Metasearch

A search tool that aggregates rates and availability from various websites, such as Kayak or TripAdvisor.

Minimum Length of Stay (MinLOS)

A rate restriction that requires a guest to book a minimum number of nights to qualify for a particular rate.

N

Net Rate

The room or event price excluding commissions and transaction costs, i.e., before markups by third parties.

No-Show

A guest with a confirmed reservation who fails to arrive without notifying the hotel.

Non-Room Revenue

Revenue generated from sources other than rooms or events, such as parking, spa services, golf, or entertainment.

O

Occupancy (Occ)

The percentage of available rooms that are occupied.
Formula: (Occupied rooms ÷ Total available rooms) × 100.

Occupancy Forecast

The projected occupancy rate for a future period, expressed as a number of rooms or a percentage of total availability.

Online Travel Agency (OTA)

A third-party website through which travelers can book hotels, flights, or rental cars. Examples: Expedia, Booking.com, Ctrip. OTAs charge commissions or apply markups to the listed rates.

Operational Forecast

A forecast based on expected hotel occupancy used to manage staffing levels and inventory.

Optimization

The process of using forecast data, rate, and capacity information to calculate the most profitable pricing and inventory decisions.

Outsourcing

A business strategy in which specific operations are contracted to external providers to reduce costs and improve efficiency.

P

Participant Density

The total number of unique participants compared to the optimal capacity of a venue.

Predictive Analytics

The use of advanced analytics to predict future outcomes based on historical and current data.

Price Sensitivity

A customer’s willingness to pay. Historical booking data helps determine how demand reacts to price changes.

Property Management System (PMS)

A software platform for managing hotel operations, including reservations, payments, and guest information, integrating data across all departments.

Q

Qualified Rate

A rate that requires the guest to meet specific criteria, such as corporate rates, membership discounts, or promotional offers.

Quality Management

All measures used to plan, control, monitor, and improve the quality of services, products, and processes.

R

Rate Distribution System

A system that distributes a hotel’s rates and inventory across both direct and indirect sales channels.

Rate Parity

The practice of maintaining consistent room rates across all distribution channels. Essential for pricing integrity and competitiveness.

Remaining Demand

The system-calculated forecast of remaining unconstrained demand for a future arrival date.

Reputation Evaluation

A pricing strategy that incorporates a hotel’s online reputation and guest reviews into revenue management decisions.

Reputation Management System

A system used to collect, monitor, and respond to guest reviews across platforms.

Revenue Generated Index (RGI)

A performance metric comparing a hotel’s RevPAR to its competitive set. An RGI above 100 indicates a higher-than-average revenue share.

Revenue Management (RM)

The practice of optimizing room availability and pricing to maximize revenue by selling the right room to the right guest at the right time through the right channel.

Revenue Management System (RMS)

A software solution that helps control room availability, pricing, and demand patterns to achieve optimal profitability.

Revenue per Available Room (RevPAR)

Revenue generated per available room.
Formula: RevPAR = Room revenue / Total available rooms.

Revenue per Occupied Space (RevPOS)

Revenue per occupied space, calculated as total event revenue divided by occupied floor area (in square meters).

Revenue per Participant

Revenue divided by the total number of participants, helping event organizers measure performance and space utilization.

Revenue Optimization

The process of maximizing profitability while accounting for market conditions and risk management.

Roll-out Strategy

A structured approach for implementing new systems, technologies, or processes across hotels or chains to ensure consistent success.

Room Block

A group of rooms reserved together for easier management, often for events, teams, or travel groups.

Room Category (Room Class)

A classification used to group rooms of similar value, such as suites, double rooms, or rooms with specific views.

Room Type

A category of rooms with shared characteristics, such as bed type, view, or layout.

S

Sales Conversion

The ratio of potential revenue from inquiries to actual booked revenue.

Shoulder Nights

Nights with reduced occupancy before and after high-demand (peak) nights.

Semi-Yieldable Rates

Qualified rates that can only be closed if the best available rate (BAR) for the same room type and stay duration is not available.

SEO (Search Engine Optimization

The process of optimizing a hotel’s website to improve visibility on search engines such as Google, aiming to increase clicks and conversions.

Smith Travel Research (STR)

A global leader in hotel benchmarking and performance analysis, providing key industry data and insights.

Special Event

A date or series of dates with atypical booking behavior where standard forecasting models may not apply.

Sustainability Factors

Environmental, social, and governance (ESG) aspects that address human rights, anti-corruption, and responsible corporate conduct.

System Override

Replacing system-generated demand values with manually entered figures based on management discretion.

T

Time Segments

Divisions of a single day (morning, midday, afternoon, evening) used to schedule different events in the same venue.

Time to Arrival (Days to Arrival)

The number of days before a guest’s arrival, used to measure booking pace and forecasting performance.

Top Line

The total revenue of a company before deducting expenses.

Total Revenue per Available Room (TRevPAR)

Total daily revenue divided by the total number of available rooms.

U

Unconstrained Demand

The total number of rooms that could be sold without restrictions — also known as “true demand.”

Unqualified Rates

Rates offered to guests without specific contractual agreements or booking conditions.

Up-Selling

A sales technique that encourages guests to purchase higher-value products or services, such as premium rooms or additional amenities.

V

W

Walk-In

A guest who arrives at the hotel without a prior reservation and books a room on the spot — common in city hotels.

Y

Yield

Refers to the revenue generated by a hotel. Yield management focuses on maximizing revenue by forecasting supply and demand. It is closely related to revenue management, which considers a broader range of factors beyond pricing alone.

Z