Terms

What is a cut-off date? A cut-off date is the date that all unconfirmed reservations will be released to general inventory for resale.

What is data mining? Data mining is the process of continually digging deeper into the data captured by a marketing intelligence system.

What is a decline stage? A decline stage is the stage of the product or service life cycle in which sales of the product or service are flat or falling.

What is demand? Demand is the amount of a good or service that a purchaser is willing and able to buy for any given price at any given time.

What is a demand drainer? Demand drainer is an activity or event that causes demand to decrease.

What is demand forecasting? Demand forecasting is the act of estimating, calculating, and predicting consumers' demand for products and services in the future.

What is a demand generator? A demand generator is an organization or event that drives customers into a marketplace. It is an activity or entity that produces demand.

What is a denial? A denial is a response that occurs when a hotel is not able to accommodate a guest due to unavailability of the product or service at the price.

What is Discount Price Leadership? Discount Price Leadership is a marketing and pricing strategy performed by a hotel by setting the lowest rate in the market.

What is discounting? Discounting is the practice of offering special reductions in price.

What is displacement? Displacement is the process of replacing one customer for another.

What is Displacement analysis? Displacement analysis is the practice of determining the total customer worth of competing pieces of business.

What is distinctive competency? Distinctive competency is an operational element which an organization performs so well (or possesses so uniquely) that it distinguishes the organization from its competitors.

What is distressed inventory? Distressed inventory is inventory that a hotel is having difficulty selling.

What is distribution cost? Distribution cost is the cost of getting a room to market.

What is dynamic packaging? Dynamic packaging is a customer-centric approach to packaging. Hospitality providers may vary the products and services bundled in a package to suit the needs of the individual consumer.

What are early adopters? Early adopters are consumers who strive to be the first to try any new product or service.

What does elastic mean? Elastic is an economic term relating to the dynamics of supply and demand. Whenever a 1 percent change in price causes more than a 1 percent change in quantity supplied or demanded, the elasticity calculation will result in a number greater than 1.

What is electronic distribution? Electronic distribution is the selling of hospitality products and services via the computer. Think of these as electronic warehouses in which a person may conduct one-stop shopping for a variety of hospitality products and services.

What is environmental scanning? Environmental scanning constantly monitoring and assessing the external environment to spot changes and emerging trends. The Hotel Price Reporter rate shopping tool can be used to perform environmental scanning.

What is an extended stay business? Any business that generates seven or more nights stay is an extended stay business.

What is FIT? FIT refers to Foreign or Free Independent Traveler.

What is fixed costs? Fixed costs are costs that do not change with a change in the activity of a business.

What is a flash report? Flash report is a daily report completed to recap the previous day’s business.

What is a folio? Folio is a record of in-house charges made by the guest since arrival. Folio would include charges such as addition food and beverage purchases, room service, dry cleaning, etc.

What is a food and beverage cost controller? Food and beverage cost controller is a person who audits the price and inventory on all food and beverage purchases.

What is forecasting? Forecasting is the act of estimating, calculating, or predicting conditions in the future. Forecasting is usually performed with the help of a rate shopper.

What is a free sell? A free sell is the provision of rooms to a wholesaler outside of the original block.

What is Frequent Traveler Programs? Frequent Traveler Programs are programs designed to reward loyal patronage and induce repeat business.

What is a full pattern length of stay restriction? Full pattern length of stay restriction is an arrival-based restriction on a guest’s stay.

What is GDS? GDS refers to a Global Distribution System.

What are Global Distribution Systems? A global distribution systems are systems offering the inventory of multiple carriers and various suppliers of hospitality products and services.

What does “go dark” mean? Go dark is when a hotel shut its doors, turns down the heat or air conditioning, and turns off the lights.

What is a gross margin? A gross margin is the revenue minus cost of goods sold (COGS). revenue - cost_of_goods = gross_margin

What is Gross Margin Percentage? Gross margin percentage is a percentage calculated by subtracting cost of goods sold from revenue and dividing that number by revenue and multiplying the result by 100.

What is IDS? IDS refers to Internet Distribution System.

What is incentive pay? Incentive pay is additional pay for up-selling products and services to hotel guests. Hotel managers typically offer incentive pay to their reception team if they are able to convince arriving guests to upgrade their room.

What is incremental business? Incremental business are guests the organization would not otherwise obtain.

What is induce trial? Induce trial is the practice of enticing customers to try out new products or services.

What does inelastic mean? Inelastic is an economic term relating to the dynamics of supply and demand. Whenever a 1 percent change in price causes less than a 1 percent change in the quantity supplied or demanded, the elasticity calculation will result in a number less than 1.

What is an Internet Distribution System? Internet Distribution System is an electronic system that facilitates purchases of hospitality products and services by consumers.

What is inventory? Inventory refers to products or services made available for sale through various channels of distribution. In the context of hotels, inventory is the number of rooms available to be booked.

What is inventory management? Inventory management is the process of controlling the units and availability of products and services across various channels of distribution.

What is Last Available Room? Last Available Room is a contract-negotiated rate between a hotel and a customer. The contract regulates the availability of the last available room at the hotel.

What is Law of Demand? Law of demand is an economic law that states that the quantity of a good or service demanded by buyers tends to increase as the price of that good or service decreases, and tends to decrease as the price increases, all things being equal.

What is Law of Supply? Law of supply an economic law that states that as price rises, the quantity supplied increases and as the price falls, the quantity supplied decreases.

What is load? Load is the percentage or flat fee above the selling price that goes to an intermediary that must also be added to the cost of distribution.

What is a Locally Negotiated Rate? Locally negotiated rate is a rate negotiated between a hotel and a company. It is often referred to as LNR.

What is a Loyalty program? Loyalty program is a program whose members are rewarded either by receiving reduced rates or by increased value, such as added amenities.

What is Managing Demand? Managing demand is the act of controlling, directing, influencing, and creating consumer purchasing propensity for a specific point in time.