Hotel Terminology: General Hotel Terms
Discover a comprehensive guide to the most commonly used hotel terms in the hospitality industry. From Average Daily Rate (ADR) to Property Management Systems (PMS), this resource is perfect for hospitality professionals, front desk staff, and anyone looking to understand hotel operations better
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Understanding general hotel terms is essential for anyone working in or interacting with the hospitality industry.
These fundamental terms are the building blocks of hotel operations, helping staff communicate effectively and ensuring a seamless guest experience.
Whether you’re a hospitality professional, a new front desk clerk, or simply curious about the industry, this section covers the most commonly used terminology you need to know to confidently navigate the dynamic world of hotels.
From occupancy rates to revenue metrics, these terms provide insight into the operational and financial aspects of running a successful hotel.
1. ADR (Average Daily Rate): A measure of the average rental income per paid occupied room.
2. Occupancy Rate: The percentage of available rooms that are occupied over a specific period.
3. RevPAR (Revenue Per Available Room): A metric used to evaluate hotel performance, calculated by multiplying ADR by the occupancy rate.
4. Rack Rate: The standard price of a hotel room before discounts.
5. PMS (Property Management System): Software used to manage reservations, check-ins/outs, billing, and more.
6. GDS (Global Distribution System): A platform connecting hotels with travel agencies for bookings.
7. No-Show: A guest who fails to arrive for their reservation without canceling.
8. Walk-In: A guest who arrives without a prior reservation.
9. Overbooking: Accepting more bookings than available rooms, anticipating cancellations or no-shows.
10. Complimentary (Comp): Services or items provided free of charge, e.g., a complimentary breakfast.