Speaking The Hotel Lingo

Whether you’re just starting out in the hotel game or whether you’re a guest who has a keen interest in knowing the ins and outs of the hospitality game, knowing the correct terminology is key. In the hospitality sector, there is a lot of terminology to know and it can be difficult to get your head around certain aspects of it and how to use it efficiently. This guide aims to help by giving a complete breakdown of many of the terms used within the hotel sector so that, as a hotelier, you can begin to put them to good use.

A is for:

The ADD/ARR or the Average Daily Rate/ Average Room Rate. This rate is essential for business and is found by dividing the revenue that has been made from hotel rooms that have been rented out by the total number of rooms that have been sold.

Next is Amadeus which is GDS system that offers global distribution services, frequently used in hotels.

ATL means Above the Line which is something every hotelier should know about because it is a key part of your business; this is a term used where you up your marketing game in order to make customers aware of your business.

global distribution services

B is for:

Benchmarking which is where you compare your hotel and your services against others to see how they compare; this could be comparing room prices, quality of room and food and the service provided.

BTL is similar to the ATL; it refers to Below The Line and is where the hotel uses particular marketing strategies to focus on a return on investment only.

C is for:

C&B and C&E which stand for Conference and Banqueting and Conference and Events which are incredibly important parts of the hospitality industry. These two aspects of the hotel business make an incredible amount of money especially if handled correctly.

Corporate Rates looks at the rates that’s have been negotiated between the hotel team and companies who may use the hotel for events or as a stop over. These are usually offered at a lower rate than usual customer rates because companies can give the hotel more frequent bookings.

G is for:

GDS which stands for Global Distribution System, an electronic booking system that is used by travel agents. You can choose from several different GDS systems such as Amadeus, Sabre and Galileo.

GOP stands for Gross Operating Profit; this is the total revenue produced but with the deduction of expenses.

H and I is for:

House Count which quite simply means the total number of customers in the hotel at any one time.

IBE stands for Internet Booking Engine which is a third-party site that allows customers to book their own hotel, flights, holidays etc online, for example, Travel Supermarket.

U is for:

Upsell which is an essential part of any business within the hospitality industry or any business that sells products or services. This is where the customer is offered upgrades and additional services on top of what they have already paid for their room. Upsell is one of the many ways that the hotel can boost their profit margins, small add-ons can make all of the difference.

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