Welcome to the dynamic and ever-evolving world of hospitality! Whether you’re a seasoned professional, a newcomer to the industry, or simply a curious observer, understanding the specific terms used in hospitality can be both intriguing and essential.

From the hotel management to the guest services, the language of hospitality is rich with specialized terms and phrases. related to the hotel industry, from A to Z, and will get you up to speed with the language of the hospitality field! To help demystify this lexicon and provide you with a handy reference, we’ve created an extensive infographic.

In this glossary, we explain definitions of the hotel industry terminology from rate parity, hotel revenue management to loyalty marketing programs and distribution channels.

This visual guide is designed to not only enhance your vocabulary but also deepen your understanding of the industry’s key concepts and practices. Join us as we explore the fascinating terminology that shapes the world of hotels, travel, and guest experiences, ensuring you’re well-equipped to navigate this vibrant sector with confidence and expertise.

All-Inclusive Resort: A holiday resort that includes a minimum of three meals daily, soft drinks, most alcoholic drinks, gratuities, and possibly other services in the price.

Allotment: The number of hotel rooms which have been bought out and held by wholesalers, like tour operators.

Amenities: An “extra” service or product given to guests by the hotel, typically at no extra charge.

Apartment Hotel: Accommodation in apartment-style units rather than rooms, with minimum or expanded in-suite cooking facilities.

Availability: The number of vacancies possibly for a specific type of accommodation for a specific set of dates.

Average Daily Rate (ADR): The total room revenue for a given period divided by the number of rooms occupied for the same period.

Bed and Breakfast (B&B): A type of room rate which includes the price of the room and breakfast.

Best Available Rate (BAR): The lowest non-restricted rate bookable by all guests.

Booking Engine (BE): An online hotel’s platform which powers its own brand site for reservations. Also known as Internet booking engine (IBE).

Booking Window: The period of time between the reservation is made by the guests or a group and the actual arrival date to the hotel.

Boutique Hotel: A design, small hotel which has typically less than 100 rooms and a unique set of characteristics in city and resort destinations.

Channel Management: Controlling the allocation of hotel inventory and rates across all distribution channels including website, third parties, and the GDS/OTAs/IDSs.

Concierge: Staff member in a hotel responsible for attending to guests’ special needs and services.

Facilities: Core physical features: accommodation, restaurants, bars, and meeting rooms.

Front Office: The office usually situated in the lobby, controlling the sale of guest rooms, providing keys, mail, information service for guests, and more.

Full Board: Rate that includes bed, breakfast, lunch, and dinner.

Global Distribution System (GDS): A network of internet reservation systems that provide a central place where travelers and travel agents can check availability and reserve travel-related products.

Half Board: Rate that includes bed, breakfast, and either lunch or dinner.

Loyalty Program: A marketing program that offers rewards to guests for regular or frequent business.

Markup: The difference between the hotel’s selling and the merchant’s price offered to the consumer.

Occupancy: The percentage of available rooms occupied for a given period of time.

Online Travel Agencies (OTA): Websites offering comprehensive travel shopping and Reservations Solutions to consumers.

Overbooking: A situation in which more room reservations have been taken by a hotel than what the hotel is able to accommodate.

Property Management System (PMS): The application used by the hotel to control onsite property activities.

Rack Rate: The full, undiscounted published room rate (price)

Rate Parity: Maintaining consistent rates for the same product in all online distribution channels.

Revenue Management: The process of understanding, anticipating, and reacting to consumer behavior to maximize revenue subject to availability.

RevPAR: A statistic used in the hotel industry to measure revenue per available room.

RevPAR is a key performance metric used in the hotel industry to assess a hotel’s ability to fill its rooms at an average rate. It combines both room revenue and room occupancy, providing a comprehensive picture of a hotel’s performance. The formula for calculating Revenue Per Available Room (RevPAR) in the hospitality industry is:

RevPAR= Average Daily Rate (ADR) × Occupancy Rate

Alternatively, it can also be calculated by dividing the total room revenue by the total number of available rooms RevPAR = Total Available Rooms / Total Room Revenue

Tour Operator: An organization or individual who actively manages and escorts tours and tour packages.