IBE, PMS,CTA, ADR… lost in the world of hotel acronyms? You’re probably not alone. So, we’ve put this handy guide of key acronyms you’ll come across as a hotelier.
ADR (or ARR): Average Daily Rate, or Average Room Rate. It is calculated by dividing the revenue generated from hotel rooms sold by the total number of rooms sold.
ADS (or IDS) – Alternative Distribution System or Internet Distribution System includes the Internet and other non-GDS electronic channels for hotel distribution.
AI (and VR): Not quite hospitality terms, but it is important for hoteliers in the 22nd century to get familiar with Artificial Intelligence and Virtual Reality – they are set to redefine how we do business.
ARI: Average Rate Index (your ARR versus the ARR of your competitors).
BAR: Best Available Rate. These are the ‘best available’ rates at the time of booking, usually priced based on demand.
CM: Channel Manager. An application that distributes available rooms and rates across multiple online travel agents, increasing distribution and revenue.
CRS: Central or Computerised Reservation System; the system that facilitates and automates your booking process.
CTA: Closed to Arrival. A guest cannot book this date if their stay begins on this date. If their stay includes this date, but does not begin on it, then it would be bookable.
CTD: Closed to Departure. A specific set of days guests cannot make their reservation for with these dates as check-out.
CVB: Convention & Visitors Bureau.
DBB: Rates that include dinner, bed and breakfast.
FIT: Free & Independent Traveler.
FOH: Front of House. Generally, refers to staff in the reception area.
GDS: Global Distribution System. A network that enables automated transactions between travel service providers (mainly airlines, hotels and car rental companies) and travel agencies.
GOP: Gross Operating Profit (total revenue less expenses).
GOPPAR: Gross Operating Profit Per Available Room. It is calculated by dividing GOP by total number of rooms available.
HCD: Hotel Content Database. This is the content management system used to distribute static information about hotels to third parties such as GDS, IDS and OTAs.
IBE: Internet Booking Engine. IBE allows guests to book rooms directly to the hotel.
L2B / L2B Ratio: Look to book. The ratio of people who visit your website or CRS (Central Reservations System) divided by the number of reservations received.
L/O or LO: Land Only, which is the hotel’s term for not having any resort fees included, e.g. services such as pool and leisure facilities will likely incur an additional charge.
LOS: Length of Stay. MLOS is Minimum Length of Stay.
MICE: Meetings, Incentives, Conventions & Exhibitions.
MPI: Market Penetration Index. A measure your hotel´s occupancy compared to the average market occupancy levels (also referred to as market share). Your occupancy/Compset occupancy X 100.
NS: No Show – a guest who doesn’t show up despite having a reservation.
Occ: Occupancy or rate of occupancy of a hotel at any given time.
OTA: Online Travel Agent. OTAs are online companies who’s websites allow consumers to book various travel related services directly via Internet.
PMS – Property Management System. A comprehensive software application used to cover objectives like coordinating the operational functions of front office, sales and planning, reporting etc.
PPPN: Per Person, Per Night. PRPN is Per Room Per Night.
PAR: Per Available Room.
RevPAR: Room Revenue Per Available Room. Calculated by dividing the gross room revenue by the number of rooms, it is one of the most important performance indicators.
RGI: Revenue Generator Index. Comparison of your hotel’s RevPAR to the average RevPAR in the market.
RMS: Rate Management System.
RO: Room Only
ROH – Run of House. No room has been allocated to a guest before arrival, so they will get any room available on arrival or a flat rate for which a property agrees to offer any of its available rooms.
SOPs: Standard Operating Procedures.
SRP: Special Rate Plan.
TAC: Travel Agent Commission.
