R - Glossary

What is a rack rate? Rack rate is the full rate payable by walk-in guests for a night’s stay at the hotel.

What is rate integrity? Rate integrity is the maintenance of consistent prices for similar purchase conditions.

What is rate shopping? Definition and meaning Rate shopping is the practice of collecting and analyzing room rates of your hotel competitors.

What is a reservation? Reservation is an arrangement between a buyer and a seller to hold a product or service in advance of purchase based on a promised intention of future purchase made by the buyer.

What is Reservation Conversion Percentage? Reservation conversion percentage is the percentage of reservations that progress from inquiry level to final sale.

What is revenue management? Revenue management is the act of skillfully, carefully, and tactfully managing, controlling, and directing capacity and sources of income, given the constraints of supply and demand.

What is a revenue management team? Revenue management team are those individuals who participate in the strategic revenue management process.

What is RevMAP? RevMAP is the critical path leading to strategic revenue management.

What is RevPAR? RevPAR stands for Revenue per Available Room. It is calculated by dividing the actual room revenue by the number of rooms available.

What is a room night? Room night is a statistical metric for the hotel industry. It is calculated by multiplying one room times one night.

What is Run of House? Run of house is the practice of offering the best available rate for all room types.