Business Tool Terminologies

ADR
Average Daily Rate is one of the primary parameters of a hotel’s income. It is the revenue generated by
the income from hotel rooms sold, divided by the total number of rooms sold.

Allocation
As the name suggests, it refers to ‘allocation of rooms’ (e.g a conference or event may have an
allocation of rooms at an agreed rate)

Alternative Availability
When a particular requested property is unavailable for sale, other available properties are displayed
which is termed as Alternative Availability.

ARR
Average Room Rate is the total room revenues divided by the number of rooms occupied, excluding any
rooms offered as complimentary

Asset number
In-house created number to identify a tool

Audit
A process to check and monitor current procedures and assess their performance

Barcode
Method of recording a number or code on to an asset

Business tool
Any asset that helps or assists the business

Business tool register

Chatbots
Also known as a chatterbot, talkbot, an artificial intelligence conversational entity, a chatbot is a service
that mimics human behavior.

CMS
Content Management System keeps your hotel website up to date. Its main function is to keep track of
contracts and agreements.

Consumables
Resources that are consumed in the normal operation of the business tool. Without consumables the
tool will not perform.

Common Skills
The minimum set of skills that are required to efficiently use a business tool
CRM
Customer Relationship Management is automated communications (pre- and post-stay) for guests along
with loyalty programs. It is the best way to make your services stand out by using information of guests
to discover the best practices for retaining business.

Damage
Harm inflected upon a tool that is not a result or accepted business usage

Documentation
Documents that support the operation or care of a business tool

Employment contract
A contract that stipulates special terms and conditions over and above a standard employment contract

Fault Reporting
Procedure to notify relevant people that a tool has a fault and is not fully operational.

FIT
Free Independent Traveler or Frequent Individual Traveler are individual tourists travelling
independently, designing their own itinerary and making their own travel arrangements without being
part of any group or imposed schedule.

GDS
Global Distribution System is a large computer network that passes inventory and rates for hotels to
travel agents and travel sites (or what we know as OTAs).

GOP
It is a KPI (Key Performance Indicator) which refers to the hotel’s profits after subtracting all of their
operating expenses. Gross Operating Profit illustrates the level of operational profitability of a hotel. In
simple terms — gross revenue minus expenses.

GOPPAR
An abbreviation for Gross Operating Profit Per Available Room is another key performance indicator for
the hotel which aids hoteliers in analyzing the results of cost-saving measures. It is calculated as the
total revenue of the hotel minus the expenses incurred earning that revenue, divided by the available
rooms.

Identification criteria
Criteria that are to be used to classify an item as a business tool

IDS
The Internet Distribution System offers technology that lets travelers research, plan and book their
travel needs from a wide selection of partners and agencies. It allows the travel suppliers to change
offers quickly so customers may find great last-minute deals to purchase.

In-House
Using people and resources that are within the confines of the business
Landline Telephone
A standard telephone that requires a physical connection to the telephone network

Legal Implications
The possible legal consequences of supplying information to those not authorised to have same

Local Expert
Someone who has a higher level of skills or knowledge than the minimum set

Loyalty Program
A rewards program for the regulars. For instance, vouchers, room upgrades etc.

Maintenance
The process of preparing a tool for later use

MOD
Manager on Duty, the ‘main’ guy looking after the smooth running of the hotel operations.

OTA
OTAs are a 3rd party who often sell a hotel’s room inventory on their behalf in exchange for a
commission fee. Examples of some of the main OTA’s include Expedia, Booking.com, Priceline etc.

Outsourced
Using people and resources that are not within the confines of the business

Password
A set of characters and letters to verify that access is allowed

Pax
In a hotel it refers to “No. of Guests”. You might come across terms such as 1000 Pax Wedding, 20 Pax
Restaurant Reservation, 03 Pax per room pertaining to the number of people involved in each case.

PMS
PMS or Property Management System is essentially a software that manages the operating activities of
the hotel and oversees and coordinates the relationship with the customer and services.

Police Check
An application to the police to disclose any previous criminal activities

PRPN
Per Room, Per Night.

Rack Rate
The standard or asking price for a room, before any discounts are applied is termed as rack rate.

Radio Frequency Identification Tags

RevPAR
Revenue Per Available Room is the total cost of the guest room divided by the number of available
rooms in the hotel.

Roster
Document detailing future access rights to a tool

Security camera
Camera positioned so as to record access to a business tool or tools

Security Tool
A process or procedure to control access to a business tool

Serial number
Number attached to a tool during the manufacturing process

Social Networking
Website that provides information on social activities of its members

Software
Business tool that controls the activities of the computer

Stock take
Process to determine and verify the existence of a business tool

Storage location
The place where a business tool is to be stored when not in use

Storage Requirements
Details any special storage conditions required by a business tool

Swipe Card
Access A method of controlling access by using swipe cards

Training
The development of skills and knowledge so as to better able to use a business tool

Usage
Allowed non-business usage

Wiki
A web site that allows access from wide range of users
Yield Management or Revenue Management
A hotel has to raise or lower prices based on demand. The key to successfully carry out this practice is to
sell the right product (like guestrooms, banquets etc.) to the right customer or for the right purpose
(such as business, leisure, government etc.) on the right day (weekdays or weekend) for the right price
(corporate rate, rack rate, or any other special rate).