28/05/2018
The hospitality sector, particularly the hotel industry, is a vibrant and dynamic field. While many aspects are intuitively understood, a specialised lexicon has evolved, encompassing everything from guest services to sophisticated revenue management strategies. This terminology, often peppered with modern anglicisms and driven by the pervasive influence of the internet, can sometimes feel like a foreign language to the uninitiated. Whether you're a seasoned hotelier, an aspiring industry professional, or simply a curious traveller wanting to understand the inner workings of your accommodation, a clear grasp of these technical terms is invaluable. This article aims to demystify the complex world of hotel jargon, providing a comprehensive glossary to illuminate the key concepts that shape the industry.
From the intricacies of booking systems to the nuances of guest experience and the ever-evolving landscape of online marketing, understanding these terms is crucial for efficient operation, strategic planning, and ultimately, maximizing profitability. Let's delve into the essential vocabulary that defines the modern hotel experience.
Core Operational Terms
At the heart of hotel management lies a set of fundamental terms that dictate daily operations and guest interactions. Understanding these is the first step towards grasping the industry's mechanics.
- All Inclusive: This refers to a package where the room rate typically covers all meals (breakfast, lunch, and dinner), snacks, and often a selection of beverages. It's essentially an enhanced form of full board, providing a comprehensive, all-encompassing experience for the guest.
- Allotment: This is a contractual agreement where a hotel allocates a specific number of rooms to a tour operator or travel agent for a defined period. The terms of this allocation, including pricing and release dates, are clearly stipulated in the contract.
- Cardex: A historical term, now largely superseded by digital systems, referring to a physical customer file or database. Modern equivalents are found within PMS (Property Management Systems) and CRM (Customer Relationship Management) software.
- Demi-double (or Demi-twin): This term signifies the price per person for a double occupancy room. It's a crucial metric for calculating the supplement charged when a double room is occupied by a single guest.
- Early Bird: A promotional strategy offering discounted rates or added value for bookings made well in advance of the stay. This incentivises early commitment and helps secure occupancy during off-peak periods.
- No Show: This unfortunate situation occurs when a guest who has made a reservation fails to arrive at the hotel without prior cancellation. Hotels often have policies in place to mitigate the financial impact of no-shows.
- Walk-in: The opposite of a reservation, a walk-in is a guest who arrives at the hotel seeking accommodation without a prior booking. This can be a boon during busy periods but requires flexibility in room allocation.
- Shift: Refers to a specific working period for hotel staff. Hotels typically operate multiple shifts throughout a 24-hour cycle to ensure continuous service.
- Surbooking (or Overselling): A strategy where a hotel accepts reservations beyond its actual room capacity. This is done to counteract the anticipated impact of no-shows and last-minute cancellations, aiming to achieve full occupancy.
Pricing and Revenue Management
The financial health of a hotel hinges on its ability to manage pricing effectively and maximise revenue. Several key terms are central to these efforts.
- Rack Rate: This is the standard, published, non-discounted price for a hotel room. It serves as the baseline from which various promotions and negotiated rates are derived.
- Yield Management: A sophisticated revenue management strategy that involves dynamically adjusting room prices based on demand, seasonality, competitor pricing, and other market factors. The goal is to maximise revenue by selling the right room to the right customer at the right time for the right price.
- RevPar (Revenue Per Available Room): A key performance indicator (KPI) that measures a hotel's average revenue earned per available room. It's calculated by dividing total room revenue by the total number of available rooms. A high RevPar indicates efficient room utilisation and strong pricing strategies.
- Taux d’occupation (Occupancy Rate): This metric represents the percentage of occupied rooms in a hotel over a specific period. It is calculated by dividing the number of rooms sold by the number of rooms available and multiplying by 100. It's a fundamental measure of a hotel's performance.
- VDM (Vente de Dernière Minute / Last-Minute Sale): A strategy of offering discounted rates on rooms shortly before the date of stay to fill unsold inventory.
- Voucher: A document, often issued by a third party or as part of a promotion, that entitles the bearer to a service or a discount, such as a hotel stay or a meal.
Digital Presence and Online Distribution
In today's interconnected world, a hotel's online presence is paramount. Understanding digital marketing and distribution terms is essential for reaching a global audience.
- Backlinks: In the context of Search Engine Optimisation (SEO), backlinks are incoming links from one webpage to another. They are crucial for improving a website's search engine ranking as they act as "votes of confidence" from other sites.
- GDS (Global Distribution Service): These are large, computerised networks used primarily by travel agents and airlines to book flights, hotels, car rentals, and other travel services. Major GDS platforms include Amadeus, Sabre, and Travelport.
- Google Address: A free tool provided by Google that allows businesses to create and manage their listing on Google Search and Maps. It's vital for local search visibility, enabling customers to find essential information like address, opening hours, photos, and reviews.
- Google Hotel Finder: Google's dedicated search engine for hotels, allowing users to compare prices and book accommodation directly or through various online travel agencies.
- IDS (Internet Distribution System) / OTA (Online Travel Agency): These terms are often used interchangeably. OTAs are online platforms that sell travel, hotel rooms, and other tourism services directly to consumers. Examples include Booking.com, Expedia, and Hotels.com. They act as intermediaries between travellers and accommodation providers.
- SEA (Search Engine Advertising): This refers to paid advertising campaigns on search engines, such as Google Ads. It involves bidding on keywords to have your website appear in sponsored search results, driving targeted traffic.
- SEO (Search Engine Optimization): The process of optimising a website to improve its ranking in search engine results pages (SERPs). This involves a range of techniques, including keyword research, content creation, and link building, aiming to increase organic (non-paid) traffic.
Room Types and Guest Packages
The variety of room configurations and service packages caters to diverse guest needs and preferences.
- Lit King Size / Queen Size: These terms refer to bed sizes. While a standard double bed in the UK is typically 140cm x 200cm, a Queen Size bed is generally 160cm x 200cm, and a King Size bed is 180cm x 200cm or larger. It's important to note that bed size standards can vary significantly across different countries and continents.
- Plan Hôtelier (Hotel Plan): This refers to the different board options offered by a hotel:
- Plan Européen (European Plan): Only the room is included in the price. All meals and beverages are charged separately.
- Plan Continental: The room and breakfast are included in the price.
- Plan Américain (American Plan): This is equivalent to full board, meaning the room rate includes all meals (breakfast, lunch, and dinner).
- Plan Américain Modifié (Modified American Plan): This typically includes breakfast and either lunch or dinner, essentially a half-board arrangement.
Contractual and Legal Aspects
Certain agreements and clauses are critical for managing relationships with third-party providers and ensuring fair practice.
- Parité Tarifaire (Rate Parity): A contractual clause, often included in agreements with OTAs, that obliges the hotel to offer its lowest available room rates on that specific platform. This practice has faced scrutiny and legal challenges in various jurisdictions due to concerns about competition.
Operational Tools and Systems
Modern hotels rely on sophisticated software to manage their operations efficiently.
- PMS (Property Management System): This is the central software used by hotels to manage all aspects of their operations, including reservations, check-in/check-out, room assignments, billing, guest history, and housekeeping. It's the digital backbone of hotel management.
Guest Experience and Service
Terms related to guest service focus on ensuring a positive and memorable stay.
- ROI (Return On Investment): A financial metric used to evaluate the profitability of an investment. In the hotel context, it measures the profit generated relative to the cost of an investment, such as a renovation or a marketing campaign.
Understanding Closing Procedures
The end of the business day involves specific financial and operational processes.
In hotel operations, there are two primary types of closing procedures: the hotel closing and the civil closing.
- Hotel Closing: This typically occurs after the last guest departure of the day. It often involves reconciling room charges, updating guest accounts, and preparing for the next day's arrivals. The key characteristic is that it's tied to the operational day of the hotel.
- Civil Closing: This procedure is usually performed at midnight, theoretically after the last guest's check-in for the day. The fundamental difference lies in how the night audit and associated charges are handled. Specifically, the civil closing determines whether the breakfast charges for the following morning are included in the current day's billing or the next. This distinction is crucial for accurate financial reporting and guest billing.
Both closing procedures are vital for maintaining accurate financial records and ensuring smooth operational transitions between days. The choice and timing of these closings can impact how revenue and expenses are recognised, particularly concerning the inclusion or exclusion of early morning services like breakfast.
Frequently Asked Questions
Q1: What is the difference between a GDS and an OTA?
A1: A GDS is a global distribution network used by travel agents and airlines to access and book travel inventory. An OTA is an online platform that sells travel directly to consumers, often using GDS data but also sourcing inventory directly from suppliers.
Q2: Why is RevPar important for a hotel?
A2: RevPar is a crucial performance indicator because it reflects both the occupancy rate and the average daily rate (ADR). A high RevPar indicates that the hotel is effectively managing its room inventory and pricing to maximise revenue.
Q3: What does 'surbooking' mean in the hotel industry?
A3: Surbooking, or overselling, is a strategy where a hotel accepts more reservations than it has rooms, anticipating that some guests will not show up or will cancel last minute. The goal is to ensure full occupancy.
Q4: How does SEO benefit a hotel's online presence?
A4: SEO helps a hotel's website rank higher in search engine results for relevant keywords (e.g., 'hotels in London'). This increases visibility, drives organic traffic, and can lead to more direct bookings, reducing reliance on OTAs.
Q5: What is the primary function of a PMS?
A5: A PMS is the core software system for managing all hotel operations, from reservations and guest check-in to billing, housekeeping, and reporting. It streamlines operations and provides essential data for decision-making.
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