Hotel terminology glossary
Short definitions of the words hotel teams use every day, with the formula where there is one and a worked example in round numbers.
A
C
F
N
- Night auditThe night audit closes a hotel's day: it posts room charges, checks the figures, marks no-shows and moves to the next business date. The steps, with an example.
- No-showA hotel no-show is a guest with a reservation who neither arrives nor cancels. How no-shows are recorded, how no-show fees work, with a worked example.
O
- Occupancy rateHotel occupancy rate is the share of sellable rooms that were sold in a period. The formula, a worked example, and what it leaves out.
- OTA (online travel agency)An OTA is a website that sells hotel rooms for a commission, such as Booking.com, Expedia, Airbnb or Agoda. How OTAs work, what they cost and how they connect to a PMS.
- OverbookingHotel overbooking means more reservations than rooms for a night. Why it happens, what it costs when a guest is turned away, and how a PMS prevents it.
R
- Rack rateThe rack rate is a hotel's full published price for a room before any discount. Where the name comes from, how it relates to other rates, and a worked example.
- RevPARRevPAR is room revenue divided by the room nights you could have sold. Two formulas, a worked example and why small hotels track it next to ADR.
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