Revenue Management Glossary

During a lively class discussion on revenue management, Mia asked with curiosity, "What does the term 'Actual(s)' refer to in revenue management?"

• The projected rooms or ADR for the future.

• The rooms or ADR that materialized in the past.

• The estimated revenue from ancillary services.

• The average length of stay for guests.

Hey Aiden, Priya, and Liam! Can you guess what "Average Length of Stay (ALOS)" measures?

• The average number of guests per room.

• The average number of days that guests stay.

• The average number of rooms booked per guest.

• The average number of cancellations per booking.

Grace and Aiden are discussing hotel reservations. What does "Cancellation" mean in the context of revenue management?

• A guest who informs the hotel in advance that they will not be using their reservation.

• A guest who extends their stay.

• A guest who changes their reservation date.

• A guest who upgrades their room.

Emily and Benjamin are planning a surprise party, but they need to use an inventory control tool to prevent new reservations on certain dates. What is this tool called?

• Closed to Arrival (CTA)

• Competitive Set

• Contracted Block

• Cut-Off Date

Harper and Daniel are planning an exciting trip and they book their hotel through a popular online travel agency. What are the payments made to the travel agency for each reservation they facilitate called?

• Commissions

• Comp

• Competitive Set

• Contract

Hey Eesha, Grace, and Aiden! Can you guess what special perks the hotel offers to a group beyond the group block and special rate?

• Concessions

• Comp

• Contracted Block

• Cut-Off Date

What is the condition that exists when sellers cannot readily increase the amount of the product or services available for sale as consumer demand for them increases called?

• Constrained Supply

• Competitive Set

• Compression

• Definite

What is the date by which the rooms for a group must be reserved called?

• Cut-Off Date

• Days Out/Days Left

• Day(s) Before Arrival (DBA)

• Definite

Hey class! William and Addison are discussing business strategies. Can you help them figure out what "Dynamic Pricing" involves?

• Selling the same products at different prices to different customers

• Offering discounts to loyal customers

• Setting a fixed price for all customers

• Providing free upgrades to customers

Chloe and Mia are discussing hotel pricing strategies. What does "Leaving Money on the Table" refer to?

• Charging less than a guest would have been willing to pay

• The rooms that are available for sale at a hotel

• Metrics used to assess a hotel's performance

• A stipulation often included in negotiated rate contracts