Terms

What is an action plan? In the context of the hospitality industry, an action plan is a calendar used for planning and assigning tasks to be completed over the course of a year.

What is an Airline Reservation System? An airline reservation system is an automated system for taking airline reservations. It is commonly referred to as ARS.

What is an ancillary purchase? Ancillary purchase is a supplementary or additional purchase made in a series of transactions.

What are antitrust laws? Antitrust laws are laws designed to prevent restraints on trade. These laws were enacted in the late 1800s to protect both consumers and businesses.

What is ARS? In the context of hospitality revenue management, ARS refers to Airline Reservation System.

What is Average Channel Contribution? Average Channel Contribution is the value determined by dividing the total revenue generated by the channel by the total number of transactions it completed.

What is Average Daily Rate? Average Daily Rate is the value calculated by dividing rooms revenue by the number of rooms sold.

What is B2B? B2B stand for Business-to-Business.

What is B2C? B2C stands for Business-to-Consumer.

What is baby boomers? Baby boomers is a generational marketing term. It includes people born between the years of 1946 and 1964.

What is Best Available Rate? Best Available Rate is the lowest rate per room available to the general public on a given night.

What is a Best Rate Guarantee Program? A Best Rate Guarantee Program is a program that guarantees that the consumer will receive the best rate from the organization.

What is booking pace? Booking pace refers to the pattern and tempo (rate) of receipt and acceptance of advanced reservations.

What is brand equity? Brand equity refers to the pattern and tempo (rate) of receipt and acceptance of advanced reservations.

What is branding? Branding is the placing an identifying mark or logo on a product produced by a specific organization or associating that brand with a service performed by that organization.

What is bundling? Bundling is the practice of combining products and service to create a package. For example, a travel agent can combine an airline ticket, airport transfer and accommodation to create a package with a single set price.

What is C2C? C2C refers to Consumer-to-Consumer.

What is cannibalization? Cannibalization is the practice of a customer leaving a higher-rated market segment to jump over a fence and gobble up lower-priced products or services offered by the same provider to other lower-rated market segments.

What is capacity? Capacity refers to the amount of space that can be filled. In the context of hotels, it refers to the total number of rooms the hotel has.

What is central reservation office? A central reservation office is an automated reservations system that take reservations for all properties within an organization.

What is a central reservation system? A central reservation system is an automated reservation system for booking several travel components, including air, car, and hotel room.

What is Ceteris paribus? Ceteris paribus is an economic term. It is another way of saying all things being equal.

What is a channel? In the context of hospitality, a channel refers to the source of the booking.

What is channel contribution? Channel contribution is the revenue generated from a single transaction.

What is channel contribution percentage? Channel contribution percentage is a percentage calculated by dividing the channel’s total revenue by the total revenue produced by all channels.

What is channel production? Channel production is the number of transactions generated by channel.

What are channels of distribution? Channels of distribution are avenues that have developed to bring the buyer and seller together. These channels act as distribution outlets through which the sellers offer their products and services for sale to their customers.

What does closed/closed out mean? “Closed” or “closed out” in the context of hospitality is when inventory is no longer available for sale.

What is closed to arrival? Closed to arrival means that the customer cannot arrive on that date regardless of their intended length of stay.

What are Color Tour Visitors/Color Tourists? The phrases Color Tour Visitors/Color Tourists are used to used to describe visitors who travel up to view the changing color of the fall foliage.

What is commission? Commission 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 competitive advantage? Competitive advantage is the component of an organization’s operation in which it excels or maintains an advantage over its competitors.

What is competitive intelligence? Competitive intelligence is the practice of conducting primary research and analyzing secondary research to understand the characteristics of the competition.

What is a competitive intelligence specialist? Competitive intelligence specialist is an individual assigned to monitor a competitor.

What is a competitive set? A competitive set is the hotel’s primary direct competitors. If your hotel is sold out, a direct competitor would be the hotel that your customer would select next.

What is a competitor? A competitor is a rival with whom one competes.

What are complements? Complements, in the context of hospitality, are two products or services where an increase in cost of one item will cause a decrease in demand for another item.

What is compression? Compression is pressure placed on a market as a result of demand. It can be any situation that occurs whenever an activity or event forces demand to be pressed outward to the surrounding areas.

What is constrained demand? Constrained demand is demand that is held back or confined by rules, restrictions, and availability. An example of constrained demand would be trying to book a flight using your frequent-flier mileage.

What is contingency planning? Contingency planning is planning for unexpected events and changes either in the internal or external environment.

What is a contract in hospitality? A contract in hospitality is a binding agreement that specifies rates, terms, anticipated volume, minimum usage, and effective dates.

What is conversion rate in hospitality? Conversion rate is the number of calls converted from inquiry to sale. This number is usually expressed as a ratio by dividing the number of reservations booked over the number of reservation calls received.

What are core competences? Core competences are the central activities that an organization performs well and that differentiate it from other firms.

What is cost based method of pricing? Cost based method of pricing is a method of pricing where the organization calculates the overall cost of producing the product or service.

What is cost of goods sold? Cost of goods sold is the direct expense in producing a good for sale.

What is CRO? CRO refers to Central Reservation Office.

What is cross-channel behavior? Cross-channel behavior occurs when a customer accesses more than one channel when making a purchase.

What is CRS? CRS refers to Central Reservation System.

What is a customer centric approach? Customer-centric approach is any marketing or operational effort focused on the needs, wants, and desires of an organization’s customers.

What is customer relationship management? Customer relationship management is any set of strategies and tactics developed to acquire and retain customers.