TERMS AND DEFINITIONS

Question 1

is a process of using analytics, performance data and other information to anticipate customer demand, so that pricing, distribution and availability can all be optimized.

Answer 1

Hotel Revenue Management

Question 2

This shows how full your hotel is. Monitoring it over time lets you understand how your hotel is performing in different periods. It might show you that your property is most popular on the weekends or during a holiday season, or when some sporting events take place nearby.

Answer 2

Occupancy Rate

Question 3

is used to calculate the average rental revenue per occupied room at a given time. To find ADR, divide your total room revenue by the number of rooms sold.

Answer 3

Average Daily Rate (ADR)

Question 4

RevPAR is one of the most popular metrics in hospitality. It’s similar to ADR, but takes the unsold room into account, giving a more accurate picture. Needless to say, hoteliers have to aim at increasing their RevPAR since it reflects both the pricing for rooms and the ability to fill them.

Answer 4

Revenue per Available Room