RevPAR
Revenue Per Available Room. A core KPI: room revenue ÷ available rooms (or ADR × occupancy).
Hotel Revenue Management Glossary
50+ plain-English definitions for revenue management terms used by hotel GMs and revenue managers. Use this as a reference hub and link it internally from guides and feature pages.
ADR
Average Daily Rate. Average room revenue earned per occupied room.
Occupancy Rate
Occupied rooms ÷ available rooms for a period.
Yield Management
A pricing and inventory discipline to sell the right room to the right guest at the right time for the right price.
GOPPAR
Gross Operating Profit Per Available Room. Profitability KPI: GOP ÷ available rooms.
TRevPAR
Total Revenue Per Available Room. Total hotel revenue ÷ available rooms (rooms + F&B + other).
Net RevPAR
RevPAR net of distribution/commission costs (often OTA commissions).
BAR (Best Available Rate)
Best publicly available flexible rate for a room type/date (often the anchor rate).
Rate Parity
Consistency of rates and conditions across channels (direct site vs OTAs), per agreements and strategy.
Comp Set
Competitive set: the hotels you compare against for rates, share, and positioning.
Rate Shopping
Monitoring competitor rates and availability across channels for pricing decisions.
Demand Forecast
Projected future demand (rooms sold / revenue) by date, segment, and channel.
Pickup
Net change in bookings over time for a future date (bookings gained minus lost).
Booking Pace
How quickly bookings accumulate as arrival dates approach; used to spot demand shifts.
Lead Time
Days between booking date and arrival date; helps predict demand and pricing power.
Length of Stay (LOS)
Number of nights in a booking; used for restrictions and pricing.
CTA / CTD
Closed to Arrival / Closed to Departure restrictions controlling check-in/out on specific dates.
MinLOS / MaxLOS
Minimum/maximum length-of-stay controls for revenue optimization during peak periods.
Overbooking
Selling slightly above capacity to offset expected cancellations/no-shows (must be tightly controlled).
No-show rate
Share of bookings that do not arrive; impacts overbooking and policy decisions.
Cancellation rate
Share of bookings cancelled; used in forecasting and policy design.
Segment
Customer group with similar behavior/value (business, leisure, groups, corporate, etc.).
Channel mix
Distribution split across direct, OTAs, wholesalers, GDS, corporate, groups.
Market share
Your share of demand/revenue in a market relative to compset.
Rate fences
Rules that justify different prices (advance purchase, refundable, member rate, etc.).
Dynamic pricing
Adjusting prices based on demand, competition, events, and remaining inventory.
Rate optimization
Systematic adjustment of rates to maximize revenue/profit given demand conditions.
Price sensitivity
How much demand changes when price changes; varies by segment and date.
Conversion rate
Percentage of visitors who book; used for direct booking and funnel improvements.
Distribution cost
Costs of acquiring bookings (commissions, fees, ads) impacting net revenue.
Commission
Fee paid to OTAs/agents per booking, typically a percentage of room revenue.
Rate plan
A pricing package with rules (refundability, meals, cancellation policy, inclusions).
Room type
Inventory category (standard, deluxe, suite) with distinct pricing and demand.
Inventory
Rooms available to sell by date and room type.
Stop-sell
Closing availability for a channel/date/rate plan to control distribution.
Allotment
Reserved inventory assigned to a channel/partner (common with wholesalers).
Wholesaler
Partner buying inventory at net rates to resell; can create rate leakage risks.
Rate leakage
Unintended undercutting (often via wholesalers/metasearch) that breaks parity.
Metasearch
Comparison engines (e.g., Google Hotel Ads) aggregating rates across channels.
GDS
Global Distribution System used by travel agents and corporate travel booking.
PMS
Property Management System—core hotel operations system managing reservations and rooms.
Channel Manager
Tool that syncs rates/availability across distribution channels to prevent overbookings.
RMS
Revenue Management System that supports forecasting, pricing, and optimization decisions.
Competitive index
Your KPI indexed against compset (e.g., RevPAR Index / RGI).
RGI
Revenue Generation Index: your RevPAR ÷ compset RevPAR × 100.
ARI
Average Rate Index: your ADR ÷ compset ADR × 100.
MPI
Market Penetration Index: your occupancy ÷ compset occupancy × 100.
Shoulder season
Period between peak and off-season; often the best balance of rate and occupancy.
Compression dates
High-demand dates where city supply is constrained (events, holidays) enabling premium pricing.