Revenue Glossary

👉 A tailored solution for a specific case. 📘 What is Ad Hoc? Ad Hoc refers to a customised rate, agreement or solution created for a particular situation. It is not part of the standard pricing structure. 📊 Formula of Ad Hoc No fixed formula — it is strategically designed

Average price per sold room, per day. 👉 On average, how much are you charging for each room someone actually stays in?

(ADV. Bookings made well ahead of arrival date. 👉 Helps you understand the pace and adjust prices.

Algorithm applied to Revenue Management. 👉 It is a set of instructions programmed to analyze data and make automatic or suggested decisions in pricing and distribution. 📊 What is an algorithm in hotels? On Revenue Management, a algorithm canidentify demand patterns, suggest ideal pricing, or forecast future bookings. It uses

👉 Allotments are the way a hotel organises and distributes its inventory across channels or segments. They are commonly understood as rooms blocked for a partner, with or without a sales commitment. 📘 What are Alloment? Quotas are blocks of rooms or room types that the hotel assigns to different

📊 What is Alos? ALOS is a core performance metric that reveals the average number of nights per booking. It helps optimise operations, segment demand, and define stay restrictions or offers. 🧮 Formula of ALOS ALOS = Occupied room nights / Number of bookings ✅ Why is ALOS important? 📘

Average of nights per booking. Formula: Total nights / Number of Bookings 👉 If they book you many times a single night… check your mix.

👉 The lowest publicly available flexible rate at any given time. 📘 What is BAR? The hotel’s base public rate, used as the foundation for derived rate plans. ✅ Why is it important? It maintains rate structure and channel parity. 💡 Example If BAR is £120, all derived rates start

👉 A business trip extended or combined with leisure time. 📘 What is Bleisure? A blend of business travel with personal leisure activities. ✅ Why is it important? It increases length of stay and guest spending. 💡 Example A guest attends meetings and stays for the weekend to explore. 🔄

Tool that allows direct online reservations on the hotel website. 👉 Where you book without intermediaries.

(Active distance from date). Time between booking date and arrival date.👉 How many days are left for the stay.

Lowest possible rates a hotel is willing to offer. 👉 The ground of your profitability.

👉 It’s not just what you sell — it’s how you’re perceived. 📘 What is Brand Reputation? Brand Reputation refers to the public perception of a hotel’s image, service quality and overall trustworthiness. It is shaped by reviews, media presence, customer experience and word-of-mouth. 📊 Formula of Brand Reputation Not

Bookings that are cancelled before arrival. 👉 Important to differentiate between refundable and non-refundable.

Customer file. 👉 A hotel day-to-day essential… but with strategic potential. 📊 What is Cardex? In hospitality, the Cardex (short for card index) refers to the individual profile record of a guest stored in the Property Management System (PMS). It gathers key data such as name, contact details, preferences, booking

📊 What is a Channel Manager? A Channel Manager is a system that connects the property management system (PMS) of a hotel with various online distribution platforms (such as OTAs, GDS, direct reserve engines). Sync in real time availability, fees and reservations to avoid overselling and maximize exposure. 🧮 How

Breakdown of bookings by channel (direct, OTA, GDS, etc.). Channel Mix Channel mix is the combination of distribution channels through which a hotel receives bookings: direct website, OTAs, GDS, physical travel agencies, tour operators, and more.💡 In other words: it’s the “recipe” that blends all your channels to find the

👉 Last-minute bookings that are not allowed under certain rates. 📘 What is Close to Arrival (CTA)? Close to Arrival (CTA) is a restriction that prevents booking a room if the arrival date is too close, usually set to manage demand and optimise revenue. ✅ Why is Close to Arrival

👉 When departure is near, rules apply. 📘 What is Close to Departure (CTD)? Close to Departure (CTD) is a restriction that limits changes, cancellations or bookings just before the guest’s departure date, to protect revenue and operational planning. ✅ Why is Close to Departure (CTD) important? Because it helps

Comparing with other hotels ethically and using real (not puffed-up) data. 👉 Checking out the competition – but keeping it classy.

(Compset). Group of competitor hotels used as benchmark in pricing and performance strategy. 👉 Your “healthy rivals”: same segment, zone or type of client.

Operating costs divided by the number of available rooms. 👉 What it costs you to have a room ready, whether you take care of it or not. It measures the average operating cost per room available, whether sold or not. It’s key to assessing the efficiency of a hotel’s fixed

Operating cost per occupied or sold room. 👉 Measures how much it costs to operate each occupied room. 📊 What is CPOR? CPOR evaluates the direct operational costs associated with sold rooms: cleaning, utilities, guest amenities, maintenance, etc. 🧮 Formula CPOR = Room operating costs / Number of rooms sold

Suggesting complementary products or services. 👉 “Do we add breakfast or late check-out?”

👉 The brain that controls your hotel’s reservations and distribution. 📘 What is a CRS? A CRS (Central Reservation System) is a centralised platform that manages a hotel’s room availability, rates and reservations across all distribution channels. It acts as the control centre connecting: The CRS ensures that inventory and

📊What is Customer Acquisition Cost? CAC is a metric that shows how much a company spends on marketing, sales, and other efforts to gain a new customer. It’s essential for assessing the efficiency of acquisition investments. 🧮 Customer Acquisition Cost Formula CAC=Total acquisition expenses​/Number of new customers acquired ✅ Importance

(CLV) (For hotels). Total value a guest brings across all their stays. 👉 How much total revenue a guest will generate over the entire relationship with your hotel or brand. It’s not all about that first booking – think long game. 📊 What is CLV? Customer Lifetime Value estimates the

📊 What is Customer Retention Rate? Customer retention rate is a metric that shows how many customers continue to buy or use a company’s services during a given timeframe. It is essential to assess loyalty, customer satisfaction, and predict business stability and growth. 🧮 Customer Retention Rate Formula Retention Rate Retention Rate=(Customers at end of period−New customers during period/Customers at start of period​)×100

(Room release deadline for groups or allotments) 👉 A key timeline to manage group and agency bookings effectively. 📊 What is Cut-off? In the hotel industry, the cut-off date is the deadline to release unconfirmed rooms from a group or allotment block. This applies to MICE bookings, corporate clients or

👉 Measures how guests perceive the value for money of your hotel at booking time. 📊 What is DQI? TThe Dataria Quality Index (DQI) is a proprietary indicator developed by Dataria that quantifies the perceived value of your hotel — not based on price alone, but on what guests feel

Booking type. Room rented for a few hours during the day, not overnight. 👉 Perfect for scales, work, short getaways.

👉 Predicting how much demand you will have in the future. 📘 What is Demand Forecasting? The process of estimating future demand using historical data, trends, events and guest behaviour. ✅ Why is it important? It helps optimise pricing, inventory, staffing and strategic planning. 💡 Practical example If Easter demand

Business Intelligence that’s easy for the whole team to use, not just the data nerds. 👉 Business Intelligence that’s accessible, understandable and useful for the entire team — not just analysts or managers, so everyone can make smart choices. 📘 What is Democratic BI? Democratic BI is a Business Intelligence

How much your business leans on a single channel or guest type. 👉 Measures how dependent a hotel is on one or more channels, guest segments, or product types to generate revenue. If it’s all riding on Booking.com… yeah, that’s a red flag. 📊 What is the Dependency Index? This

👉 Acts as a local expert, coordinating all tourism services and events within a specific destination. 📘 What is a Destination Management Company (DMC)? A DMC is a company specialising in the comprehensive organisation and management of tourism services and events within a given destination. ✅ Why is a DMC

👉 Short-term gain, long-term price war. 📘 What is Dumping? Dumping is the practice of selling products or services below cost, usually aiming to eliminate competition or rapidly gain market share. ✅ Why is Dumping important? It helps understand risks of aggressive pricing strategies: 💡 Practical example of Dumping A

(Double Use Single). Rate for a double room used by one person. 👉 A single customer, but in a double room.

Constantly tweaking prices based on how far out the bookings are. 👉 A booking 30 days in advance isn’t the same as one made last-minute.

What is Eco Choice Rate? ❓ Eco Choice Rate is the percentage of guests who choose sustainable options when offered (in rooms, add-ons, or experiences). 👉 Think of it as a green sensitivity thermometer for your guests. Formula of Eco Choice Rate 🧮 Eco Choice Rate = Number of bookings

Clear, honest reasons behind price differences. A pricing strategy that differentiates rates transparently and fairly, without misleading or discriminating against guests. 📊 What is Ethical Rate Fencing? Rate Fencing refers to setting clear conditions for accessing specific hotel rates.The ethical version ensures these fences are justifiable, visible, and respectful, avoiding

💡 A Dataria-exclusive innovation, the FDQ algorithm brings benchmarking into the modern era.It doesn’t just compare prices — it contextualises them dynamically based on quality, perception, and positioning. 📊 What is FDQ? FDQ (Fair Dynamic Quality) is a proprietary Dataria indicator that allows you to benchmark your hotel against any

Sales projection based on historical data and current demand. Very useful to control in real time the fulfillment of your main goals in the different indicators (KPIs).👉 Allows you to anticipate and adjust prices or personal.

The continuous process of updating predictions based on new data. 👉 More than predicting punctually, it’s tuning all the time.

What is the Grey Market in hospitality? In hospitality, the Grey Market refers to the sale of hotel rooms through unauthorised channels or at prices that do not comply with the hotel’s agreed terms. These channels often acquire inventory indirectly, for example, by purchasing from wholesalers who then resell outside

❓ What is Green ADR Light? Green ADR Light is the average daily rate of sustainable rooms. This includes rooms with eco-certifications, energy efficiency measures, or responsible materials. 👉 It measures what guests pay on average for staying in a room with added sustainable value. 🧮 Formula of Green ADR

Tracking profit with sustainability in mind. Indicators that combine financial performance with environmental and social impact in hotel operations. 📊 What are Green Revenue Metrics? Green Revenue Metrics track how income is generated with respect to sustainability principles. It’s not just how much money is earned — it’s how responsibly

What is Green RevPAR? Green RevPAR measures revenue per available room, but only for sustainable rooms. 👉 It’s like traditional RevPAR, but applied to the green inventory. Formula of Green RevPAR 🧮 Green RevPAR = Green ADR Light × Occupancy of sustainable rooms Why does Green RevPAR matter? Because it

(GoPPar). Gross operating profit divided by the number of available rooms. 👉 It goes beyond RevPAR because it includes operating costs. 📊 What is GOPPAR? GOPPAR stands for Gross Operating Profit Per Available Room. This key metric in the hotel industry shows the net operating profit generated by each available

👉 A Guaranteed Allotment is a block of rooms reserved for a partner under contractual guaranteed conditions. As the name suggests, it is guaranteed, whether prepaid or not, and whether or not a release clause applies. 📘 What are guaranteed alloment? They are a type of allotment in which the

📊 What is the Guest Experience? Guest Experience refers to all touchpoints between the guest and the hotel, both online and offline, before, during and after the stay. It includes the booking process, arrival, room, services, staff interactions, and post-stay communication. A strong guest experience can turn an average stay

Online Reviews as score. Feedback with guest opinions and ratings on platforms such as Booking. 👉 What guests say about your hotel after their stay — public, visible, and influential. 📊 What are ratings? Guest ratings are numerical scores (usually 1–10 or 1–5 stars) left on platforms like Google, Booking.com,

👉 Ideal for those who want convenience without full board. 📘 What is Half Board? Half Board is a type of accommodation that includes breakfast and one additional meal (usually dinner) in the room rate. ✅ Why is Half Board important? It provides convenience and cost predictability for guests: 💡

(Hotel Budget). Annual plan of income, expenses and expected profitability.👉 Your economic roadmap for the year.

📊 What is Hotel Market? In hotel revenue management, “Hotel Mareket” is a term used to describe the geographical or commercial market where the hotel competes. It includes the local demand, competition, and economic factors influencing performance. 🧮 Factors defining Hotel Market ✅ Importance of Hotel Market 📘 Practical example

Mix of automation + human judgement to set rates. 👉 How we do it at Dataria: tech gives the suggestion, you make the call.

👉 Selling more once the guest is already with you. 📘 What is In-House Selling? In-House Selling is the strategy of promoting upgrades, add-ons or additional services to guests who are already staying at the hotel. 📊 Formula of In-House Selling Often tracked through: Ancillary Revenue per Guest = Total

👉 The total number of rooms or products available to sell. 📘 What is Inventory? In hospitality, inventory refers to all sellable rooms or products available during a specific period. ✅ Why is Inventory important? Because poor inventory control leads to unsold rooms or overbooking. It’s the backbone of hotel

(Information Technology Manager). Person in charge of the hotel’s technology infrastructure. 👉 The person who makes everything digital and technological work.

(KISS: Keep it simple, stupid). Principle to simplify processes and avoid unnecessary complexity. 👉 Don’t complicate rates or processes: simple sells.

Percentage of staff costs over total revenue 📊 What is Labour Cost Ratio? This ratio indicates the share of labour expenses in relation to total revenue. It includes all salary-related costs: fixed, variable, and employer contributions. 🧮 Formula of Labor Cost Ratio Labour Cost Ratio = (Labour costs / Total

Bookings made shortly before arrival, usually less than 48 hours. 👉 Opportunity or time bomb.

Gap between booking date and check-in. 👉 How far in advance are people booking?

Average number of nights guests stick around. 👉 How long do folks usually stay with you?

👉 The amount added to the base rate by an intermediary. 📘 What is Mark-up? The margin added on top of the hotel’s base rate. ✅ Why is it important? It defines the final selling price. 💡 Example Base rate £100 → Selling price £130 → Mark-up £30. 🔄 Disambiguation

How your occupancy compares to the competition. 👉 Compare your occupancy versus the average occupancy of your compset. 📊 What is the MPI? Market Penetration Index (MPI) your occupancy against the average of your competitive set. It reflects how well your hotel is performing in terms of market share. 🧮

Grouping customers by behaviour or booking channel. ¿What is Market Segmentation? In hospitality, market segmentation is the process of dividing potential customers into groups with similar characteristics, needs, or behaviours. Segments can be based on trip purpose (business, leisure, MICE), booking channel, geography, rate, or customer type. Importance It enables

Search engines that compare hotel rates across different OTAs and direct websites. ❓ What is META? In hospitality, META refers to Metasearch Engines, platforms that allow users to compare hotel prices across different distribution channels (such as OTAs, the hotel’s official website, GDS, etc.) in a single interface. Common examples

from English. (Meetings, Incentives, Conferences and Exhibitions) 👉 Key segment for hotel profitability, beyond vacation tourism. 📊 What is MICE? MICE is the English acronym for meetings, incentives, conferences and exhibitions, and refers to business tourism that revolves around corporate events, incentive trips, congresses and fairs. This segment represents a

Technique. Prioritising reservations by revenue contribution. 👉 The system chooses the most profitable rate according to business rules.

👉 The guest does not arrive and does not cancel. 📘 What is a No Show? A guest who fails to arrive without cancelling the booking. ✅ Why is it important? It results in lost revenue and unsold inventory. 💡 Example A guaranteed booking that never arrives. 🔄 Disambiguation A

Percentage of rooms sold vs. total available. 👉 How full is your place tonight?

👉 “We’ll confirm it once the hotel approves” 📘 What is On Request? An On Request room or rate is not instantly confirmed. The booking remains pending until the hotel manually checks availability and approves it. ✅ Why is On Request important? It helps hotels avoid overbooking and keep tighter

👉 What you already have confirmed today. 📘 What is OTB? All bookings already confirmed for a future period. ✅ Why is it important? Because it shows real, secured demand and helps detect pacing deviations. 💡 Practical example 42% occupancy already booked for 15 August = OTB 42%. 🔄 Disambiguation

(Online Travel Agency). Intermediary platforms that sell rooms online to the final customer. Example: Booking, Expedia, etc. 👉 The online agencies that we all use… but they charge commission.

Selling more rooms than you’ve got, banking on cancellations. 👉 A bit risky – but smart if you know what you’re doing.

👉 When your forecast is higher than the demand you actually received. 📘 What is Overforecast? A situation where the projected demand exceeds real demand. ✅ Why is it important? It leads to poor pricing decisions and missed revenue opportunities. 💡 Practical example Forecast: 90 %Actual: 72 %Overforecast = 18

👉 Same as overbooking, but said in a fancier way. 📘 What is Oversale? Oversale is a hotel management strategy that involves selling more rooms than are available to cover potential cancellations or no-shows. ✅ Why is Oversale important? Because it allows hotels to minimise losses from empty rooms: 💡

👉 Your clients counted one by one. 📘 What is PAX? PAX is a term used in hospitality and tourism to refer to the number of people or passengers occupying a room, attending an event, or using a service. ✅ Why is PAX important? Because it helps plan and adjust

Adapting the guest experience, offers or communication to individual preferences and behaviours.It can involve customised emails, room suggestions, price recommendations or upselling strategies based on guest data. 👋 Personalisation isn’t spying — it’s understanding. The better you know your guest, the easier it is to offer exactly what they need…

New bookings made over a set period. 👉 How fast are rooms flying off the shelf?

Property Management System — A Hotel Management System technology. 📊 What is a PMS? A PMS (Property Management System) is the core operational software of a hotel. It handles everything from guest arrivals and departures to room allocation, billing, housekeeping status, reporting and integrations with other systems like channel managers,

👉 The true margin that ends up “in your pocket” after deducting discounts, commissions, and variable costs. 📘 What is Pocket Margin? It is the effective profit per booking after removing all direct booking-related costs. ✅ Why is Pocket Margin important? Because it reveals the true profitability of each channel

Positioning of a hotel in the market. 📊 What is hotel positioning? Positioning refers to how your hotel is perceived by potential guests in relation to other accommodations. It’s not just about price, star rating or location — it also involves your online reputation, perceived quality, design, services, reviews, and

Hotel market positioning. 👉 The place your hotel occupies in the guest’s mind compared to alternative options. 📊 What is hotel positioning? Positioning refers to how your hotel is perceived by potential guests in relation to other accommodations. It’s not just about price, star rating or location — it also

👉 The strategy and process of setting room rates to optimise revenue based on market demand, competition, and other factors. Pricing strategy is more than just numbers: it’s about understanding the market, demand, and your guest to maximise revenue. 📊 What is pricing? Pricing refers to determining the right room

Actual profit per channel – not just sales numbers. 👉 Which one’s bringing you real cash, not just bookings?

(PMS). Software used to manage hotel operations like check-in, billing, housekeeping, etc.👉 The ‘operational brain’ of the hotel.

Official public room rates without any discounts. 👉 The “list price” that no reseller usually pays.

What is Rate Fencing? The rate fencing It is a Revenue Management tactic that sets conditions or “fences” to control access to specific rates. Fences can be physical (room type, view, package) or non-physical (cancellation policy, advance purchase, minimum length of stay). The aim is to offer differentiated prices in

Keeping your prices the same across all channels. 👉 What you try to avoid to stop losing margin for no good reason.

📊 What is Rate Shopping? Rate Shopping is the process of collecting and comparing room rates from competitor hotels (your compset) across OTAs, brand.com, and other channels. This is usually done using automated tools called rate shoppers. ✅ Why is it important? 📘 Practical example of Rate Shopping If your

(Returning blocked rooms to general inventory) 📊 What is Release? In hospitality, a release refers to the act of freeing up blocked rooms (for a group, agency or wholesaler) that haven’t been confirmed by the cut-off date. Once released, these rooms go back to the hotel’s general inventory, allowing them

👉 The rules of the game for booking rooms. 📘 What are Restrictions? Restrictions in hospitality are conditions that limit or control room bookings, aiming to optimise revenue and manage occupancy. ✅ Why are Restrictions important? Because they allow the hotel to control occupancy and maximise profitability: 💡 Practical example

👉 Income generated solely from the sale of hotel rooms. 📊 What is Revenue? Revenue is the total money earned from rooms sold over a specific period, excluding other sources like food or events. 🧮 Revenue Formula Revenue = Average Daily Rate (ADR) × Number of rooms sold ✅ Importance

👉 The strategic process of optimising a hotel’s revenue by managing pricing, distribution, and availability. 📊 What is Revenue Management? Revenue Management uses data analysis and strategies to sell the right room, to the right customer, at the right price, at the right time to maximise total hotel revenue. 🧮

(RPO) Total revenue divided by the number of occupied rooms. .Formula: Total Revenue / Occupied Rooms.

👉 How much revenue each available square metre actually generates. 📘 What is RevPAM? RevPAM (Revenue per Available Metre) is a metric that measures the revenue generated per available square metre within a hotel. Unlike room-based KPIs, RevPAM focuses on the profitability of physical space, including areas such as: It

(Revenue per Available Room) Average income per available room – it’s ADR × Occupancy. 👉 Tells you how well your rooms are really performing, booked or not.

📘 What is RevPASH? RevPASH measures the revenue generated per available seat per hour. It’s particularly useful in food and beverage (F&B) operations, helping assess the performance of dining areas in terms of occupancy and turnover. ✅ Why is it important? 🧮 Formula RevPASH = Total revenue / (Available seats

👉 The more, the better… as long as they’re controlled. 📘 What are Sales Channels? Sales Channels are the different platforms and intermediaries through which a hotel sells its rooms and services. These may include: They shape how and where your inventory reaches the market. 📊 Formula of Sales Channels