Lodging Inudstry
all the businesses that provide overnight accommodations for guests
hotel
an establishment that provides sleeping rooms as well as various services to the traveling public
hotelier
the owner/manager of one or more hotels
market
the potential customers for a business's products and services
tourist
a person who travels for pleasure
full-service hotel
a lodging facility that offers complete food and beverage services
room service
the delivery of food and beverages to a hotel guest's sleeping room
limited-service hotel
A lodging facility that offers no, or very restricted, food and beverage services. Also known as a "select-service hotel.
bed and breakfast inns
Very small properties (one to several guest rooms) owned or managed by persons living on-site; these businesses typically offer one meal a day; also called B&B
camps/park lodges
Sleeping facilities in national, state, or other parks and recreational areas that accommodate visitors to these areas.
extended-stay hotels
a moderately priced, limited-service hotel marketing to guests desiring accommodation for extended time periods (generally one week or longer)
convention hotel
a lodging property with extensive and flexible meeting and exhibition spaces that markets to associations, corporations, and other groups bringing people together for meetings
conference center
a specialized hospitality operation specifically designed for and dedicated to the needs of small- and medium-sized meeting of 20 to 100 people
resort
a full-service hotel with additional attractions that make it a primary destination for travelers
timeshare
a lodging property that sells its rooms to guests for use during a specific time period each year; also called vacation ownership property
private clubs
membership organizations not open to the public that exist for people enjoying common interests
cruise ship
a passenger vessel designed to provide leisure experiences for people on vacation at sea
casino
a business operation that offers table and card games along with (usually) slot operations and other games of skill or chance and amenities that are marketed to customers seeking gaming activities and entertainment
Average Daily Rate (ADR)
the average (mean) selling price of all guest rooms in a hotel, city, or country for a specific period of time
Occupancy Rate (OR)
the ratio of guest rooms sold (or given away) to the number of guest rooms available for sale in a given time period and expressed as a percentage
RevPAR
the average revenue generated by each guest room available during a specific time period. It combines the information from ADR and OR into a single measure
GOPART
the amount of profit made from room sales divided by the number of rooms available to sell
Gross Operating Profit
the amount of revenue generated in a defined time period minus its management controllable expenses for that same time period
hospitality industry
organizations that provide lodging accommodations and food services for people when they are away from home
amenities
hotel products and services designed to attract guests
hotel shuttle
A vehicle used by a hotel to transport guests to and from such destinations as airports, restaurants, and shopping
hub
Typically, a big-city airport within a short driving distance of a very large population center.
charter
a form of transportation rented exclusively for a specific group of travelers
travel agent
a professional who assists clients in planning and purchasing travel
package
a group of travel services, such as hotel rooms, meals, and airfare, sold for one price
Global Distribution System (GDS)
computer system that connects travel professionals worldwide for the purpose of reserving hotel rooms and other services for their clients
Online Travel Agent (OTA)
an organization that provides travel booking services on the internet
tour operator
a company or individual who plans and markets travel packages
guided tour
a group tour package that includes the services of one or more tour guides
professional development
the process by which hoteliers continue to improve their knowledge and skills
trade shows
An industry-specific event that allows suppliers to an industry to interact with, educate, and sell to individuals who are part of the industry; also called an exhibition.
vendors
those who sell products and services to hoteliers
Return on Investment (ROI)
the percentage rate of financial return achieved on the money invested in a hotel property
profit
the money remaining after all the expenses of operating a business have been paid
depreciation
the reduction in the value of an asset as it wears out
appreciation
the increase, over time, in the value of an asset
owner/operator
A hotel investor who also manages (operates) the hotel
general manager (GM)
the traditional title of the individual at a hotel property who is responsible for final decision-making regarding property-specific operating policies and procedures
management company
an organization that operates a hotel for a fee
depressed market
a hotel market where occupancy rates and/or ADRs are significantly below their historical levels
reposession
the taking back of a property by a seller or lender, usually in response to nonpayment by the buyer
First tier (management company)
management companies that operate hotels for owners using the management company's trade name as the hotel brand
EX: Hyatt, Hilton, Sheraton
Second tier (management company)
management companies that operate hotels for owners and do not use the management company name as part of the hotel name
EX: American General Hospitality, Summer Hotel Management, Winegardner & Hammons
liable
legally bound to compensate for injury or loss
management contract
An agreement between a hotel's owners and a hotel management company under which, for a fee, the management company operates the hotel
franchise
an arrangement whereby one party (the franchisor) allows another party to use its logo, brand name, systems, and resources in exchange for a fee
franchisor
an organization that manages a brand and sells the right to use the brand name
franchisee
an individual or company that buys, under specific terms and conditions, the right to use a brand name for a fixed period of time and at an agreed-upon price
brand
the name of a specific hotel group
EX: Holiday Inn, Comfort Inn, Hyatt, Hampton Inn, Super 8, Radisson
chain
the hotels operated by a group of franchisees who have all franchised the same hotel brand name
conversion
the changing of a hotel form one brand to another
franchise agreement
A legal contract between a hotel's owners (the franchisee) and the brand managers (the franchisor) that describes the duties and responsibilities of each in the franchise relationship.
Federal Trade Commission (FTC)
Government agency that enforces federal antitrust and consumer protection laws. It also seeks to ensure that the nation's business markets function competitively and are free of undue restrictions caused by acts or practices that are unfair or deceptive.
Franchise Offering Circular (FOC)
Franchise disclosure document prepared by a franchisor and registered and filed with the state governmental agency responsible for administering franchise relationships
brand statement
a hotel service or feature that must be offered by any property entering or remaining in a specific hotel brand
Franchise Service Director (FSD)
The representative of a franchise brand who interacts directly with a hotel franchisee. Different brands may title this important position somewhat differently, but each will have a comparable position.
management
the coordination of individual efforts to achieve established goals
planning
the process of considering the future and establishing goals for an organization
short-range goals
goals that are to be achieved in the very near future (usually less than one year)
long-range goals
Goals that are to be achieved over an extended period (usually longer than one year).
organizing
actions designed to bring together and arrange the resources of a group to help it achieve its goals
directing
the process of supervising staff members in the workplace
controlling
the process of comparing actual results to planned results and taking corrective action as needed
authority
the power or right to direct the activities of others and to enforce compliance
organizational chart
a visual portrayal of the jobs and positions of authority within an organization
FF&E
the furniture, fixtures, and equipment used by a hotel to service its guests
role model
an individual who displays positive personal and professional characteristics that others find desirable
mentor
to serve as a personal teacher
line-level
Employees whose jobs are non-supervisory. These are typically positions where the employee is paid a per-hour wage (not a salary) and performs a recurring and specific task for the hotel. Sometimes referred to as an "hourly" employee.
comp
Short for "complimentary" or "no-charge" for products or services
quality inspection scores
these scores are the result of annual (or more frequent) inspections conducted by a franchise company to ensure that franchisor-mandated standards are being met by the franchisee
regional manager
the individual responsible for the operation of multiple hotels in a designated geographic area
line of authority
A direct superior-subordinate relationship in which one person (the superior) is completely responsible for directing and exercising control over the actions of another (the subordinate).
direct bill
A financial arrangement whereby a guest is allowed to purchase hotel services and products on credit terms
front office
the department within the hotel responsible for guest reservations, registration, service, and payment
front desk
the area within the hotel used for guest registration and payment
FOM
front office manager
Property Management System (PMS)
the industry term for the computerized system used to record guest reservations, financial information, and other data related to the operation of a hotel's front office
Central Reservation System (CRS)
the industry term for the computerized program used to record guest room reservations
back-up system
Redundant hardware and/or software operated in parallel to the system it serves.
night audit
The process of reviewing for accuracy and completeness the accounting transactions from one day to conclude, or "close," that day's sales information in preparation for recording the transactions of the next day.
night auditor
The individual who performs the daily review of all the financial transactions with hotel guests recorded by the front office.
folio
detailed list of a hotel guest's room charges as well as other charges authorized by the guest or legally imposed by the hotel
room type
specific configurations of guest rooms
sell-out
1. A situation in which all available rooms are sold. A hotel, area, or entire city may, if demand is strong enough, sell out.
2. A period of time in which management must attempt to optimize ADR.
historical data
information related to the stays of past guests
guest history
information related to the past stays of one guest
Revenue Management (RM)
the process and procedures used to optimize RevPAR
revenue manager
an individual whose major task consists of forecasting room demand so that the hotel can maximize RevPAR
rack rate
the price at which a hotel sells its rooms when no discounts of any kind are offered to the guest
overbook(ed)
a situation in which the hotel has more confirmed guest reservations that it has rooms available to lodge those guests
walk
a situation in which a guest with a reservation is relocated from the reserved hotel to another hotel because no room was available at the reserved hotel
no-show
a guest who makes a room reservation but fails to cancel it or does not arrive at the hotel on the date of the confirmed reservation
corporate rate
the special rate a hotel charges to its typical business traveler
transient
individual guests who are not part of a group or tour booking
negotiated rate
An agreed upon rate that is offered by a hotel but is subject to room availability.
group rate
special discounted room rates given to customers who agree to buy a large number of room nights for their group
contract rate
A fixed term room rate that is agreed to in advance and for the length of the contract agreement.
upselling
Tactics used to increase the hotel's average daily rate (ADR) by encouraging guests to reserve higher-priced rooms with better or more amenities than are provided with lower-priced rooms.
walk-in
a guest seeking a room who arrives at the hotel without an advance reservation
curb appeal
The initial visual impression the hotel's parking areas, grounds, and external buildings create for an arriving guest.
confirmation number
a series of numbers and/or letters that serve to identify a specific hotel reservation
cancellation number
a series of numbers and/or letters that serve to identify the cancellation of a specific hotel reservation
room night
the number of rooms used times the number of nights they are sold
black-out date
Specific day(s) when the hotel is sold out and/or is not accepting normal reservations.
registration (reg) card
A document that provides details such as guest's name, arrival date, rate to be paid, departure date, and other information related to the guest's stay.
authorize
to validate or confirm
post
to enter a guest's charges into the PMS to create a permanent record of the sale
interface
the process in which one data-generating system automatically shares all or part of its information with another system
call accounting
the system used by a hotel to document and charge guests for the use of their in-room telephones
PBX
Short for "Private Branch Exchange." The system within the hotel used to process incoming, internal, and outgoing telephone calls.