At BookingSuite we use terms related to managing prices that might or might not be familiar to you. To make sure that all of our partners are on the same page when it comes to these terms, here is a list of the most common ones with a brief explanation.
Availability: The number of vacancies possibly for a specific type of accommodation for a specific set of dates.
Average Daily Rate (ADR): Lets you know what guests on average pay for a room at your property. This is calculated by dividing the total gross revenue made from your rooms sold by the number of rooms sold.
Best Available Rate (BAR): The lowest rate without restrictions that is available to all guests. This rate can change several times a week up to several times a day. Also called Best Flexible Rate (BFR).
Central Reservation System (CRS): This is a system that hotels could use to manage the distribution of the rooms and reservations. Typically a GDS helps hotels reach guests via different channels such as travel agencies, online travel agencies (e.g. Expedia, Orbitz, Travelocity, and Priceline), direct hotel website, and telephone.
Channel Manager: A system that is used by properties to easily allocate of rooms inventory and rates across all distribution channels such as the direct property website and online travel agencies (e.g. Expedia, Orbitz, Travelocity, and Priceline). Using channel management solutions should be cost-saving and improve efficiency by having one place from which you manage multiple channels.
Demand-based pricing: Pricing method that uses the market demand as the main input. It looks also at what the guest is willing to pay for the value that they receive.
Demand Generators: Strategies that will create demand for a specific property or the area in which it's located. This can be done for example by discounts, promotions, or packages.
Market Demand: Combined demand of all potential guests that are looking for an accommodation for a specific period of time in a specific market.
Median rate of your competitors: the median is the middle value of a range of values and is different from the average. If you for example have the following range of rates "90, 74, 40", then 74 is the median value and 68 the average. The system uses the median instead of the average rate because the average may significantly be influenced by extremely low or high rates (which could create a false representation of the market demand).
Minimum Length of Stay (MLOS): A restriction on a rate that requires a reservation to meet or exceed a certain length of stay in number of nights (2 or more) in order to complete the reservation.
Maximum Length of Stay: A restriction on a rate that limits a reservation with a certain length of stay in number of nights (2 or more) in order to complete the reservation.
Occupancy: calculated as the number of rooms booked at your property divided by the total number of rooms available at your property for a given period
Rate shopper: a tool that allows you to see how your room rates compare to those of your competitors at a glance
Revenue Per Available Room (RevPAR): tells you how much revenue you have made on average per room that is available at your property, regardless if the room has been sold or not. It is also known as Gross Operating Profit Per Available Room (GOPAR). There are two ways to calculate this:
- Total gross revenue made from your rooms sold divided by total number of rooms available at your property
- Average occupancy at your property multiplied by Average Daily Rate (ADR)