Hotel slang is a world of its own. With so many hotel staff and hospitality professionals, it’s important to have a grasp of hotel terminology so everyone is on the same page. The more you can ensure that everyone on your staff speaks the same hotel lingo, the better your operations and inter-departmental communication will be. 

Whether it be technical terms, slang, or jargon, knowing the right terms for your industry is key to efficient communication across the board. Keep reading to get a helpful list of all the must-know terminology for the hotel industry.

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Terminology dictionary of the hotel industry

The hospitality industry has a lot of terms and hotel slang that are important for all staff to know, no matter what level they are on. And familiarizing yourself with this terminology will help you be more comfortable with your day-to-day job. 

ADR (average daily rate)

An important KPI that hotels use to calculate how much revenue on average can be earned per occupied room in a given time period. 

Advance rates

These are discounted rates that hotels use to get guests to book in advance. 

AGOP (adjusted gross operating profit)

The total gross operating profit minus hotel management base fee and additional expenses. 

Availability

The number of vacancies possible for a certain set of dates for a specific type of accommodation. 

Average length of stay (ALOS)

The number of nights that guests stay at a hotel, calculated by dividing the total number of nights stayed by the total number of bookings. 

BEO (banquet event order)

A document outlining all the requirements for a specific event, such as scheduled activities, food, required setup, and other arrival information, which is extremely helpful to staff for managing events. 

Best available rate (BAR)

The best rates available at the time of booking, especially for last-minute bookings. 

Booking engine

A type of software that can be embedded in your hotel’s website to manage online direct bookings. Most hotels will connect it to their property management system to streamline the booking process. 

C&B (conference and banqueting)

Refers to conference and banqueting services. 

C&E (conference and events)

Refers to conference and events services. 

Channel manager

Software used to manage distribution efforts across online channels, ensuring that rates and availability are consistent across channels. 

Check-in

The processes involved with registering a guest upon their arrival, providing them with information about their stay, and giving them their room keys. Hotels usually have a standard check-in time, but guests can pay more to check in early. 

Check-in kiosk

A terminal that guests can use to check themselves in and cut their own key cards to expedite the check-in process. It’s usually offered as an integrated part of your hotel management software. 

Check-out

When a guest has completed their stay at your hotel and is ready to settle their bill, turn in their keycards, and head to their onward destination. 

Commission

A fee or percentage that hotels pay to third parties for selling their rooms. 

Comp set (competitor set)

A list of hotels with similar attributes to your hotel’s, used as a point of comparison for rates and services. It’s essentially a list of direct competitors. 

CRM (customer relationship management)

A system that allows hotels to manage their engagement with guests. 

Central reservation system (CRS)

A CRS is an application used by hotels to manage distribution and room bookings, reaching guests through multiple distribution channels such as travel agencies and online travel agencies.

Terminology dictionary of the hotel industry

DND (do not disturb)

Guests can put a sign on their doorknob to let housekeeping know they don’t want housekeeping or turndown service. 

Demand-based pricing

When hotels increase room rates during peak season or special events to take advantage of higher demand. Conversely, prices may be lowered when demand is lower. 

Dynamic pricing

Adjusting room rates according to various factors to optimize revenue. This can include seasonal pricing, demand-based pricing, pricing based on booking patterns, or special events. 

Early bird

A discount that guests receive when they book far in advance. 

ETA (estimated time of arrival)

Used to understand when a guest is expected to check-in or arrive for a specific event. It can also indicate when different vendors are expected to arrive with deliveries. 

Extended stay

When a hotel guest stays beyond five consecutive days, the hotel may charge the guest on a weekly basis instead of nightly. 

F&B (food and beverage)

This refers to the department of your hotel that manages food and beverage preparation and purchasing of supplies. It’s the part of the hotel relating to the bar and restaurant. 

Fam trip (familiarization trip)

A free stay designed to familiarize travel agents, corporations, or tour agencies with your hotel for future use for accommodations and conferences. 

FOH (front of house)

This refers to the staff that is guest-facing, including receptionists, concierge, and bellhops. 

Full board

A rate that includes breakfast, lunch, and dinner. 

GDS (global distribution system)

An electronic reservation system used by travel agents globally to book hotel rooms. The most common GDS are Amadeus, Sabre, and Galileo. 

Gross margins

The difference in revenue expressed as a percentage of the revenue generated by the hotel versus the cost of the services sold. 

Gross operating profit per available room (GOPPAR)

A revenue metric that helps hotels calculate the gross operating profit generated by each available room in a set time. 

House count

The total number of guests staying at a hotel at a given time. 

Hotel rate parity

Also known as price parity and rate parity, this is when your hotel offers consistent rates across all distribution channels. 

Invoice

A hotel bill that states all the charges for a guest’s stay, such as room, meals, services, and any other incidentals. It is given to guests at the end of their stay. 

KPI (key performance indicators)

Metrics that help hotels understand how well they are performing against the competition, enabling strategic decisions based on results. Common KPIs in the hotel industry include ADR, ALOS, RevPAR, and occupancy rate. 

Lead time

The amount of time that lapses between when a guest makes a booking and when they are scheduled to check-in. 

Length of stay (LOS)

Refers to how long a guest stays at your hotel. 

Loyalty program

A type of rewards program aimed at rewarding frequent guests. Rewards can include free stays, free meals, vouchers, and more. 

Market parity

Determining your market price based on your competitor set to reaffirm your hotel’s competitive edge. 

Market segments

Smaller groups within a larger market to which certain services appeal. 

Market share

The percentage of business your hotel has within its particular category. 

Metasearch engines

These third-party booking platforms, such as Kayak, Google Hotels, and TripAdvisor, help guests compare rates and are an important source of hotel bookings. 

MICE

An important segment of the hospitality industry relating to meetings, incentives, conferences, and exhibitions. It usually involves managing events and corporate groups. 

Minimum acceptable rate (MAR)

The lowest rate a hotel will accept from a group to be profitable. 

Net rate

The price a hotel charges third parties, excluding commission fees. 

No-show

This hotel slang refers to a reservation in which the confirmed party doesn’t show up without notifying the hotel. 

Occupancy

Refers to how full a hotel is, based on dividing the total number of occupied rooms by the total of rooms. 

Occupancy forecast

When a hotel predicts what occupancy will be within a certain period to help define business goals. Occupancy can be the actual number of rooms available or the percentage of total rooms. 

Occupancy rate

The average of occupied rooms over a certain period of time. 

OTA (online travel agent)

Online sites that sell your hotel rooms, helping generate added revenue and bookings for your hotel. 

OTB (on the books)

Refers to the reservations that are confirmed and recorded. 

Overbooking

Occurs when more rooms are sold than are available. 

Overstock

Happens when you have more supplies or amenities than are needed in a given period. 

PAX

Hotel slang referring to the number of people for a booking or event. 

Peak season

The period or set of dates where occupancy for a hotel is at its highest. 

POS (point of sale)

A type of hardware and software used to process payments. The payment can be online or in person. 

ProPAR

A metric used to calculate net revenue per available room. It can also be referred to as Net RevPAR. 

Property management system (PMS)

Software designed to manage your hotel’s operations all in one place. You can manage everything from housekeeping to front desk operations.

Property management system

Rack rate

The price of a hotel room without promotions or discounts applied. 

Repeat business

When business returns, helping generate increased profits. 

Revenue management

The role of predicting demand and adjusting rates to meet that demand on a regular basis. 

RevPAR (revenue per available room)

A metric used to measure a hotel’s performance. It can be calculated by dividing a hotel’s total room revenue by the total number of available rooms, taking into account occupancy and average daily rate. 

RevPOR (revenue per occupied room)

A hotel metric that helps measure how much revenue can be generated by every occupied room. Vacant rooms are excluded. 

Room block

A set of rooms that are set aside for a group of guests. 

Room class

Rooms grouped together due to their similar characteristics and value proposition. 

Rooms yield

An equation that averages revenue from all rooms, divided by the number of rooms in a hotel, and by 365 nights. 

Shoulder season

The period after peak season that has lower occupancy, without being the lowest occupancy. It’s the time span between high and low season. 

SOP (standard operating procedure)

A set of detailed instructions for performing an activity. 

Transient business

A segment of business made up of individual bookings that are walk-in guests, guests that book last minute, or guests requiring a short stay. 

TrevPAR (total revenue per available room)

A key performance metric used by hotels to calculate the total revenue per available room based on all sources (rooms, F&B, etc.). 

Upselling

The practice where hotels offer guests additional services or upgrades to increase incremental revenue. 

Value added pricing

When hotels charge a higher room rate but include added services or amenities. 

Walk-in

When a guest arrives at the hotel without a booking and requests to stay. 

Yield management

Also known as revenue management, it’s the practice of understanding, anticipating, and reacting to demand to maximize revenue. 

YTD (year to date)

Commonly used in accounting and finance to report on financials. It refers to the beginning of the current year (fiscal or calendar) up to the current date. 

Conclusion

We’ve explored the essential terminology for the hotel industry, from ADR to YTD. Understanding these terms is crucial for all staff members, ensuring that everyone can work efficiently and communicate effectively. Mastering the industry’s jargon not only helps in day-to-day operations but also gives you a competitive edge, enabling your team to thrive in the dynamic world of hospitality.