Definitions

The hotel industry uses a lot of acronyms and abbreviations that may not be clear or easy to understand. So we built the world’s largest and growing repository of hotel industry terms, acronyms and definitions. We don’t claim to be the definitive answer on all hotel terms that have been adopted, just a team that genuinely wants to make life easier for our clients.

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ALOS

Acronym for average length of stay

Amenities

Commonly used to describe personal toiletry items such as shampoo, toothpaste, mouthwash, shoeshine kit, sewing kit, and shower cap that are provided at no additional cost to the guests

Average Daily Rate (ADR)

A metric system used in the hospitality industry to measure the average rate paid for rooms sold

Average Published Rate (APR)

A rate taken by averaging all types of hotel rooms throughout the year according to high or low season.

Back of House

The term used to describe non-guest areas within a hotel. These include areas such as kitchen, engineering and housekeeping departments.

Banquets

An older term, still used for conferences and events that requires any form of catering (the catering does not have to be food).

Bed Tax

An added price to a hotel room imposed by the city or country based on where the hotel is located.

Benchmarking

Comparing your hotel against competitors. This could include benchmarking by product/service, room rate, quality etc.

BEO

Banquet Event Order.

BMS

Building Management System refers to the system installed to monitor and control a buildings technical systems and services. such as air conditioning, ventilation, lighting and hydraulics.

Boutique

a term used to describe properties that have historically been described as unique in style and design-centric, and are either independent or affiliated with a brand system. This term has expanded to include many types of hotels and is often open to interpretation

Business Centre

Is a dedicated office space for guest use. It is commonly equipped with machinery found in a typical office, such as photocopier, fax, computer terminal, telephone etc. Some hotels have manned Business Centres, who offer secretarial services

Capital Expenditure

Also known as CapEx. Money spent by a business to acquire or maintain fixed assets such as land, buildings and equipment

Casting

Allowing guests to cast their own content from their phone, tablet or laptop to the hotel room TV. Casting is synonymous with products like Chromecast which it has largely stemmed from. When casting, you’re not streaming video from your mobile device to the TV display, but rather using your mobile to initially set up the cast, and then letting the application, YouTube or Netflix do the rest of the work. When casting you could use your phone to start a movie on hotels TV for your children and then leave the room. The movie would continue to play.

Charge Back

Is a payment authorisation, which permits specified costs to be billed elsewhere, other than the guest. This is usually only permitted for companies and clients with an established line of credit with the hotel.

Chatbots

A chatbot, is an artificial conversational entity normally on a hotels website to handle frequently asked questions.

Check Out

The process by which a guest settles their bill and hands back any key/keycards.

Check-In

The process by which a guest registers their arrival at a hotel and receives their key/keycards.

Collateral

Refers to the custom-designed in-room marketing material that reflects the hotel branding and guest communications goals.

Compendium

An in-room directory folder, containing information about services, facilities and features within the hotel, as well as associated and nearby services. Also commonly referred to as a ‘Service Directory’. As a result of the COVID Pandemic, many hotels have removed these directories and replaced them with a digital version the guest accesses via QR code.

Competitor Set

A group of hotels who are direct competitors, in a set category of hotels, within a defined region/area.

Complimentary Rate

A rate in which there is no charge to the guest. This can refer to rooms and any other specified service, such as breakfast, internet, valet parking.

Concierge

A designated staff member, who can provide a vast amount of information and assistance, on the hotel, local, and nearby services of the city. Often mistaken as a mere ‘information’ person, a good concierge can mean the difference between an average and extraordinary stay. Some of the best concierges around the world have networking to access even the most difficult items to obtain, such as restaurant reservations, theatre tickets and invitation-only events.

Confirmation Number

This is a number generated by the hotel computer system when a reservation is entered. Please note that when a reservation is made via a third party, the agent will provide a confirmation number – which is not the same as the hotels.

Contactless Check-in

Allows a hotel guest to self-check-in. This is usually done via their mobile phone and prior to arrival. This is similar to checking in for a flight with an airline. This is also often referred to as web-based Check-in. Once the guest arrives at the hotel they still go to the front desk, but as the “transactional” aspects have been taken care of they generally just have to collect the key. This streamlines the check-in for the guest and the hotel and if done well can be a more pleasant experience than a traditional check-in.

Continental Breakfast

A term used to describe a light breakfast, which does not include cooked dishes. Generally includes tea/coffee, juice, fruit, sweet roll and/or cereal.

Corporate Guest

A term used to describe business guests, who are employees of a company and entitled to a negotiated room rate.

Corporate Rates

A rate offered to corporate guests, which is unavailable to the general public. These are usually through negotiation, based on a guaranteed number of nights annually.

Cover

Refers to diners within a restaurant. E.g) A hotel restaurant achieved 30 covers (30 people dined)

Credit Card Authorisation Form

Is a form/document supplied by the hotel, which can be completed to obtain permission, for charges to be paid for by a person other than the registered guest. This is commonly requested for those who do not have credit cards, surprise gifts, or company employees whereby the company wishes to pay in advance. These days, these forms should be digital, making it simpler for the guest and also more secure.

CRM (Customer Relationship Management)

System used to track customer information and leads for a business

CRS

Acronym for central reservation system. The system that facilitates the booking of rooms, conferences etc. This might be via telephone, website, email etc.

Daily Rate

A term used for the room rate breakdown for each day, for a particular room type over a specific set of dates

Day Use

A reservation that is for a specified time period, with the arrival and departure on the same date.

Day Use Room

A room that is sold for the day only

DBB

Rates that include Dinner, Bed and Breakfast.

DND Sign

Is a ‘Do Not Disturb’ sign, which is hung outside the room to inform hotel staff that the occupant does not wish to be disturbed. Some hotels no longer use these signs, and now have moved to a door bell with light indicators outside the room door.

DOSM

Director of Sales and Marketing

Early Arrival

An agreement with a hotel that allows confirmed guests to check-in before the standard time.

Electronic Key

A plastic key with electronic codes embedded. There are two types of electronic keys; the more common keys with the magnetic strip, and the less common Proxy Cards, which are internally wired with an electronic chip, and requires no swiping or contact with the locking mechanism.

ETA

Estimated Time of Arrival.

ETD

Estimated Time of Departure.

Express Check-Out

Is a form of authorisation given by the guest, for the hotel to process a checkout, without the guest needing to go to the Front Desk.

F&B

Industry acronym for food & beverage

Familiarization Tours (FAM)

Organized trips for members of the travel trade to familiarize them with the hotel’s facilities destinations

FIT

Free Independent Traveller. It is a loosely used term by hotels and travel agents, to generally refer to guests that are not part of any package or tour.

Fitness Centre

Gym. There are many varying sizes of hotel fitness centres available, from the most basic, to some of the most advanced exercise equipment

Folio

An overview of a guest’s hotel account including all charges and payments made, stored in the Property Management System

Front of House (FOH)

A term used to describe any functional and visible areas of the hotel, in which employees have extensive guest contact. These include but not limited to Front Desk/Reception, Restaurant, Bars, Lobby, and any accessible areas to the public

Front Office

Specifically refers to the area where guests first arrive at the hotel. This area is also called the reception area

GDPR

Stands for the General Data Protection Regulation, also known as the Data Protection Act. This act was passed by the European Union in 2018 and governs how companies collect and store personal data, with the goal of protecting the consumer with opt-in alerts and controls.

GDS

Global Distribution System. Network of electronic reservation systems used globally by travel agents booking hotel rooms (and airlines). Common GDS include Sabre, Galileo and Amadeus.

Global Distribution System (GDS)

A computer software company that provides travel agencies with hardware for airplane, hotel, and car reservations.

GM

General Manager.

GRMS

Guest Room Management System

Gross Operating Profit (GOP)

The result of the hotel’s gross operating revenue, minus gross operating expenses.

Gross Operating Profit Per Available Room (GOPPAR)

A measure of performance across all sources of revenue.

Gross Operating Revenue (GOR)

A hotel’s total operating revenue.

Group Booking

A reservation made for multiple rooms by a single entity, often for a corporate event or conference

Group Rate

Rate secured for all rooms in a room block for an event.

GSM

Guest Services Manager.

Guest Folio

A term used for a printout of a guests’ room account.

Guest History

Is a vast collection of guest stay details, recording everything from average stay expenditure, to notes and comments from previous stays.

Guest Profile

Is a database of guests’ history, plus the guests’ preferences, status, personal details such as contact information, and any other collated information for ‘profiling’.

Guest Relations Officer/Manager

Are designated staff who deal exclusively with handling of guest specific matters and nothing else. Although they are Front Office based, they technically do not fit into Front Office, Concierge or Food & Beverage department, float in all areas, and have very different set of tasks to either department.

Guest Service Agents

The current term for receptionist/front desk clerk/cashier/telephonist. It was brought about to reflect the multi-tasking capacity and expectations of these staff.

Hard Refurbishment

A phrase used to describe the re-decorating of the room, which involves changing of fixtures, fittings and furniture.

Head Chef

In charge of the kitchen, including Sous Chef(s), Chef de Partie(s) and Commis Chef(s)

Housekeeping

An important department of the hotel industry responsible for cleanliness, aesthetic upkeep of the guest rooms, public area and back of house areas

HSIA

High-Speed Internet Access

HVAC

Heating ventilation and air-conditioning, is the principal user of energy in a hotel.

In-Room Safe

Is a safe located in a guest room, of varying design. Usually fitted in the wardrobe or out of direct line of sight.

Inbound

Is a multiple use term, originally used to describe an overseas guest, which has now expanded to cover all manner of reservations. Travel agents still use it in the original sense, but hotels now use it to describe almost any independent online reservation

Independent Hotel

A hotel with no affiliation with a franchise or chain

Interconnecting Rooms

Is a phrase used to describe two or more rooms with a common internal doorway.

Inventory

Is a term used by both travel agents and hotels, to describe a product such as a room. Internally, a hotel can use this as a term to describe any stock or merchandise, operating supplies, and other items held for use in a hotel.

IPTV

IPTV means Internet Protocol Television. This service is TV programming that is distributed from your television headend to your guest rooms via your hotel’s Local Area (data) Network or via coaxial cable in the case of older installations. IPTV hotel television systems allow hotels to offer content such as video-on-demand, as well as welcome screens and other locally generated content, guest messaging, billing and many other services directly through the television.

Kiosk

A kiosk is most often a digital touchscreen where guests can complete the check-in and check-out tasks themselves instead of relying on hotel front desk

Last Room Availability (LRA)

A combination of negotiated and group rates that allow agents to book a hotel’s last available room at a contracted rate.

Late Arrival

Guests that advise they will be later than the agreed time of arrival.

Late Charge

Charges that may be passed on to a guest after their departure from a hotel. For example, telephone calls or mini bar charges that weren’t determined before the guest left.

Late Check Out

When a guest leaves the hotel later than the agreed time of departure. This may be at an agreed ‘Late Check Out’ fee.

Late Show

A guest who arrives later than the agreed time of their reservation.

Leisure Guest

Those travelling for pleasure.

Length of Stay (LOS)

Total nights that a guest spends with a hotel.

Limited Service

A hotel that may not offer the full range of services typically expected of a hotel. E.g no restaurant services is available.

Loyalty Programme

A rewards programme for those that stay at the hotel regularly. Rewards can vary, but typically include free stays, dining vouchers etc.

Maintenance

Also often referred to as Engineering is responsible for the physical facilities of the hotel. Their job is to keep the facility in top condition for safety, guest satisfaction and profitability

Market Segments

An identified group in an overall market to which a specific service appeals. This is used in the hotel industry to determine who responds to a lead

MICE

Industry acronym for Meetings, Incentives, Conference, & Exhibitions

Mini Bar

Is an in-room fixture, which is a miniature refrigerator stocked with juices, liquor, and snack for the convenience of guests. The more modern versions have sensors, which detect the removal of items, and automatically charges the guest for that item.

Mobile Key

Also referred to as a digital key, mobile key allows guests to unlock a door using an app on their smartphone rather than a traditional plastic room key

MOD

Manager on Duty

Motels

Traditionally were any accommodation that are predominantly located primarily by the roadside. An evolvement of the phrase ‘Motorway Hotel’, they were originally focused on providing lodgings to road travellers, although the term is now more widely accepted as lodgings of slightly lesser services than a ‘Hotel’. One notable aspect about motels, is that they often provide ample parking.

MTD

Month to Date.

Mystery Guest

A quality control measure whereby an undercover employee (usually of an external organisation) poses as a guest to evaluate the performance of a hotel.

Night Audit

Is the financial controlling process, whereby the financial activity of guest’s accounts is maintained and balanced on a nightly basis. It is during this overnight process, where room charges are added to the guest account.

No-Show

Term for reservations where the confirmed party does not show up without contacting the hotel to cancel or change the reservation

O.O.O – Out Of Order

Is a room status, that has been removed from any form of guest use. When a room is placed on this status, it is physically not counted as part of the room count.

Occupancy

The measure of fill by dividing the total number of rooms occupied by the number of rooms available.

Occupancy Forecast

A prediction of occupancy for a set period that helps hotels define their business goals. Usually communicated as a number of rooms or percentage of total rooms available.

Operator

Could refer to a hotel management company managing a hotel under a management agreement.

OTA

Online Travel Agent. This is a very broad term, that generally refers to a travel related booking platform. They are not like a traditional a High Street agent, in that you don’t receive advice. Best interpreted as ‘booking sites’ rather than a ‘travel agent’.

OTA

Acronym for Online Travel Agent/Agencies such as Expedia

Overbooking

Is a term used for a situation, whereby reservations are taken for more rooms than are available. This is mostly a deliberate action by the hotel, by trying to forecast the number of no show reservations, stayovers, understays, and walk ins, with the goal of achieving a 100% occupancy. The definition also refers to the terms ‘Bump’ and ‘Walk’.

PABX or PBX

A Private Automatic Branch Exchange system makes it possible to have many lines of access using a few connections to the public network.

Package Rate

A term used to describe a room rate that include goods and services in addition to a room.

Paid Out

Is a charge processed to a guest account, whereby external services are paid for by the hotel on the guest behalf, and then charged to the guest account. This accounting process is also used to refund, cash balances left on a guest account at time of checkout.

Pax

Another term for number of people or passengers or guests

PCI

Stands for the Payment Card Industry Data Security Standard, which provides industry standards for accepting, storing, and processing credit card information

Point of Sale

Refers to the computer system that manages the purchases or transaction a customer makes in a hotel outlet. Often Food & Beverage related

Property Management System (PMS)

A software system used by hotels use to manage their operations.

PWA

Progressive Web App, this describes a website that is generally accessed by a QR code. Even though it is a website it looks and behaves much like an App. This technology is now being used for Digital Compendiums and Digital Food Ordering as hotel guests do not want to download App every time they go to a hotel.

Rack Rate

The original price of a hotel room before any discounts or promotional rates are applied

Refurbishment

Is a term used to describe any physical changing of room or space structure, from its original design. Can be Soft or Hard.

Revenue Management

Can best be described as selling the right room to the right customer at the right moment and price – with the best commission efficiency. It’s not just about pricing rooms, but also about maximizing a guest’s total spend on property.

RevPar

Revenue per available room calculated on the number of rooms available to sell in a hotel

Room Allocation

Is the task of assigning a specific room number to a reservation. This is generally partially performed the night before, with the exception being reservation with approved special requests attached – which maybe allocated much earlier. The task is usually done on the basis of ‘top down’, meaning the suites and higher room types are assigned first.

Room Move

Is the task of having to change the guest room, whether it be by guest request, or for other hotel reasons.

Room Nights

Rooms blocked or occupied multiplied by the number of nights the rooms are reserved.

Room Service

The original and still the most common term, for the service of ordered food within a guest room. Also now commonly referred to as ‘In Room Dining’.

Room Status

Is a Housekeeping and Front Office term used to describe the state of readiness for use, of a specific room. The most common used status terms are; Vacant Clean, Vacant Dirty, Occupied Clean, and Occupied Dirty.

Smart Room

A smart hotel room is a room that makes use of ‘smart’ electronic devices, powered by the Internet of Things (IoT). This IoT technology means that what were once ordinary devices are now fitted with internet connectivity, allowing them to send and receive data and, effectively, communicate with one another.

Soft Opening

Partial launch of a hotel property, often at a reduced service level, to test and gauge equipment and the service offering, prior to a Grand Opening.

Soft Refurbishment

Is a phrase used to describe the re-decorating of the room, which only requires the changing of the ‘soft’ furnishings, such as linen, curtains, painted surfaces, cushions, and carpet.

SOP

Standard Operating Procedure(s).

Source of Business

A breakdown structure a hotel uses to track how business brought in and which channel it came from

Sous Chef

‘Under Chef’. Second in command after the Head Chef

Stay Overs

In-house guests who are not due to checkout on any given date.

Stop Sell

The act of stopping the hotel from being booked on distribution channels, used when hotel is sold out during a certain time period.

Studio

Is a term most commonly used for room types, whereby there is a designated living area and sleeping area, but does not have walls separating them.

Suite

Is a term most commonly used, for any room type that has a wall separating the sleeping area from the living area

TA

Travel Agent (or can sometimes be used to refer to TripAdvisor)

Total RevPAR

Total revenue per available room. The sum of net revenues from all operating departments in addition to rentals and other income per available room for the time period, divided by total available rooms during a specified time period.

Trade Show

Industry-specific exhibition of products or services. An exhibition of products and/or services held for members of a common or related industry. Not open to the general public

Transient Business

Segment of business comprised of individual bookings as opposed to bookings from a group

Transient Guest

An individual traveler who books a room directly with the hotel

Turn Down Service

Is an early evening courtesy service, provided by the housekeeping department. The guest room is refreshed, restocked with supplies, and bedcovers are removed in preparation for guest sleep. Guests often receive ‘gifts’ such as sweets, bottled water, mints, as part of the Turn Down service.

Twin Room

Is a room configuration, whereby the normal bedding layout contains two beds of any size.

Upgrade

Is a term used for a room reservation, whereby a guest is provided complimentary, or paid for, a room type above what was originally booked.

Upsell

Process by which a guest is offered (at a cost) additional services or upgrades (often at the point of purchase or upon arrival to the hotel)

Valet Dry Cleaning

Is a charged laundering and dry cleaning service for guest clothing and garments.

Valet Parking

Is a hotel parking service for all guests, whereby the vehicle is parked on the guest behalf by a designated staff member.

Very Important Person (VIP)

Individual who should receive special or elevated treatment based on their role or relationship to an event

Walk-In

A guest who arrives at a hotel to stay without having made a reservation

Yield Management

Process of understanding, anticipating, and reacting to consumer behaviour to maximize revenue. Also known as Revenue Management