Hotel Terms & Definitions: The Complete Hospitality Glossary

Between the acronyms (ADR, RevPAR, OTA, CTA, CTD), the terms borrowed from travel and aviation (PAX, GDS, allotment), and the technology vocabulary that arrived in the last ten years (PMS, channel manager, IBE), there is a lot to absorb. Some of it is genuinely useful shorthand. Some of it is just habit that stuck.

This glossary covers 130+ terms across hotel operations, technology, and performance metrics. SabeeApp is a hotel management platform used by 6,000+ independent properties in 70+ countries. We put this together as a reference for the industry.

Hotel KPIs & Performance Metrics

Hotel KPIs are the numbers that tell you whether your property is actually performing or just staying busy. Most of them come from the same place — your room revenue data — which is why a reliable PMS matters. The metrics below are the ones that show up in every revenue manager's morning report.

ADR (Average Daily Rate)

Average Daily Rate is the average revenue earned per occupied room in a given day. Formula: daily room revenue divided by number of occupied rooms. ADR tells you what you are charging, not how many rooms you are filling. For that, use RevPAR.

ALOS (Average Length of Stay)

Average Length of Stay is the average number of nights guests stay in a given period. Formula: total room nights divided by number of reservations. Destination type, hotel category, and season all affect it. Longer stays generally mean lower cost per guest and better margins.

ARR (Average Room Rate)

Average Room Rate calculates the average price per room sold over an extended period, weekly, monthly, quarterly, or annually. Unlike ADR, which is a daily metric, ARR gives a longer-term view of pricing performance. Formula: total room revenue divided by number of rooms sold.

ARG (Average Rate per Guest)

Average Rate per Guest shows the average rate paid per individual guest for a given day. Particularly useful for hotels with mixed room types where the number of guests per room varies. Formula: daily room revenue divided by total number of guests.

Cancellation Rate

The percentage of reservations cancelled in a given period. Formula: number of cancelled reservations divided by total reservations received. Hotels typically manage cancellation rates through non-refundable rate plans and deposit policies.

GOPPAR (Gross Operating Profit Per Available Room)

GOPPAR measures profitability after operating expenses, expressed per available room. Unlike RevPAR, which only measures revenue, GOPPAR accounts for costs, making it a more complete picture of financial performance. Formula: gross operating profit divided by number of available rooms.

Occupancy Rate

Occupancy rate is the percentage of available rooms sold in a given period. Formula: rooms sold divided by rooms available, multiplied by 100. For example, a 50-room hotel that sells 40 rooms in a night has an 80% occupancy rate. One of the most fundamental hotel KPIs, used alongside ADR to calculate RevPAR.

RevPAR (Revenue Per Available Room)

RevPAR combines occupancy and rate into a single number. Unlike ADR, it penalises you for empty rooms. A hotel running at 60% occupancy with a high ADR can still have a weak RevPAR. Formula: total room revenue divided by available rooms, or ADR multiplied by occupancy rate. SabeeApp's PMS reports RevPAR automatically.

RevPOR (Revenue Per Occupied Room)

RevPOR measures total revenue per occupied room, including all ancillary revenue such as F&B, minibar, and wellness, not just room charges. Unlike RevPAR, it excludes vacant rooms. Formula: total revenue divided by number of occupied rooms. Useful for measuring the effectiveness of upselling strategies.

TrevPAR (Total Revenue Per Available Room)

TrevPAR shows total revenue from all hotel departments per available room. The key difference from RevPAR is that RevPAR only counts room revenue, while TrevPAR includes rooms, restaurant, bar, spa, and everything else. Formula: total hotel revenue divided by number of available rooms.

A–Z Hotel Industry & Technology Terms

A

Add-on

An optional software module that extends a hotel platform's core functionality. In SabeeApp, add-ons include SabeePay (payment processing), Unified Inbox (guest messaging), and Guest Advisor (online check-in and communication).

Allotment

Guaranteed hotel rooms purchased and held by distribution partners such as tour operators, wholesalers, or OTAs. Allotment rooms are contracted in advance and released back to general inventory if not filled by a set cut-off date.

API (Application Programming Interface)

An API allows different software systems to communicate and share data. In hospitality, APIs are how hotel management software connects to OTAs, payment gateways, and third-party tools. SabeeApp uses direct API connections with 60+ OTAs to sync rates and availability in real time.

Arrival

The physical arrival of a guest at the hotel, including completion of the check-in process, identity verification, and room key issuance.

Availability

The number of vacant rooms available for guests to book for a specific date or period.

B

BAR (Best Available Rate)

The lowest publicly available flexible rate for a room on a given date, with no restrictions on cancellation or modification. BAR is the reference rate from which discounted or restricted rates are typically derived.

Bed & Breakfast (B&B)

A rate plan that includes accommodation plus breakfast. One of the most common meal plan options at independent hotels and guesthouses.

Bleisure

A travel trend combining business and leisure in a single trip. Bleisure travellers extend a work trip to include personal activities. This segment has grown steadily since 2020 and is relevant for hotels near conference venues, airports, or city centres.

Blocked date

A specific date on which selected rooms are made unavailable for booking, typically for housekeeping, maintenance, or renovation.

Board plan

The meal arrangement included with accommodation. Common board plans: Room Only (no meals), Bed & Breakfast, Half Board (breakfast plus one main meal), Full Board (all meals).

Booking Engine (IBE)

A booking engine is software embedded on a hotel's website that allows guests to search availability and book directly, without going through an OTA. Direct bookings carry zero commission. SabeeApp's Booking Engine connects in real time to the PMS to keep inventory synchronised across all channels.

Booking pace

The rate at which reservations are being made for a specific future date. If a date is filling faster than historical patterns, it signals an opportunity to increase rates. Booking pace is a core input for revenue management decisions.

Booking window

The period of time between when a reservation is made and the guest's arrival date. Short booking windows (last-minute) and long booking windows (advance) typically require different pricing strategies.

Boutique hotel

A small, independently operated hotel, typically 10 to 100 rooms, with a distinctive design, personalised service, and a strong sense of place. The term is often used loosely, but the defining quality is character over standardisation.

Bulk update

A PMS or channel manager feature that applies the same rate, availability, or restriction change across multiple room types or date ranges simultaneously.

C

Cancellation policy

The rules governing what happens when a guest cancels. Policies range from fully flexible (free cancellation) to non-refundable. Hotels typically offer multiple rate plans with different cancellation conditions to serve different guest segments.

Channel management

The process of managing a hotel's room inventory, rates, and availability across all online distribution channels, including OTAs, the hotel's own website, GDS, and metasearch. SabeeApp's Channel Manager synchronises updates across 60+ OTAs in real time.

Check-in

The process by which a guest officially arrives: identity verification, registration, room assignment, and key handover. Standard check-in times are between 2 PM and 4 PM, though this varies by property. SabeeApp's Guest Advisor enables online and mobile check-in before arrival.

Check-out

The process by which a guest ends their stay: settling outstanding charges on their folio, returning room keys, and departing. Standard check-out is typically by 11 AM to 12 PM.

Children policy

The rules governing how children are accommodated, including age thresholds, whether children can stay free in a parent's room, and applicable charges. Properties with a minimum age requirement are called adult-only hotels.

City tax

A local government fee charged per guest per night, used to fund tourism infrastructure. The amount varies by city or country, must be collected by the hotel, and is typically displayed separately from the room rate at checkout.

Cloud computing / SaaS

Cloud computing delivers software and data storage over the internet rather than through locally installed systems. SaaS (Software as a Service) is the dominant delivery model for hotel technology today, including PMS, channel managers, and booking engines. Cloud-based software like SabeeApp can be accessed from any device and updates automatically without IT intervention.

Closed to Arrival (CTA)

A rate restriction that prevents new reservations from checking in on a specific date. Used strategically during high-demand periods to optimise multi-night stay patterns.

Closed to Departure (CTD)

A rate restriction that prevents guests from checking out on a specific date. Often paired with CTA restrictions around peak events or holidays.

Commission

The fee paid to a distribution channel for generating a booking. OTA commissions typically range from 15% to 25% of the room rate. Direct bookings through a hotel's own booking engine carry zero commission.

CompSet (Competitive Set)

A defined group of competitor hotels used as a benchmark for pricing, occupancy, and revenue performance. A well-chosen CompSet includes hotels of similar size, category, location, and target market.

Conversion rate

The percentage of website visitors who complete a booking. Improving conversion rate on a direct booking engine reduces dependence on OTAs and lowers total distribution costs.

Corporate guests

Guests who book under negotiated corporate rate agreements. Corporate accounts provide a reliable revenue stream, particularly during off-peak periods and weekdays.

Cross-sell

The practice of encouraging guests to add complementary services to their reservation, such as breakfast, airport transfers, or spa treatments. SabeeApp's Guest Advisor enables automated cross-sell offers before and during a guest's stay.

D

Departure

The final interaction of the guest cycle: the check-out process, during which the guest vacates their room and settles any outstanding charges on their folio.

Deposit

A partial or full payment collected in advance to secure a reservation. Deposits reduce cancellation risk and protect revenue. SabeePay integrates with SabeeApp's PMS to collect and process deposits automatically.

Direct reservation

A booking made directly through the hotel's own website, booking engine, or phone, without an intermediary. Direct reservations generate more revenue per booking since no OTA commission is paid.

Distribution channel

Any platform or intermediary through which a hotel sells rooms, including the hotel's own website, OTAs, GDS, wholesalers, and corporate partners.

Distribution mix

The balance of bookings across all distribution channels. Managing the mix to increase direct bookings while maintaining OTA visibility is a core revenue management objective.

Dormitory room

A shared room in a hostel with multiple beds sold individually. Dormitories may be single-gender or mixed. Pricing is per bed, not per room.

Dynamic pricing

A pricing strategy in which room rates are adjusted continuously based on demand, competitor rates, local events, and booking pace, rather than using fixed seasonal prices. SabeeApp's Channel Manager enables real-time rate updates across all connected OTAs whenever pricing changes are applied.

E

Early bird

A discounted rate offered to guests who book well in advance, typically 30 days or more before arrival. Early bird promotions help hotels build a base of confirmed bookings ahead of the arrival period.

End of day (EOD) / Night Audit

A process in the PMS that marks the official end of the financial business day, reconciles all transactions, generates daily reports, and prepares the system for the next day. In modern cloud-based systems like SabeeApp, this runs automatically.

ETA (Estimated Time of Arrival)

The expected check-in time communicated by a guest in advance. Helps front desk teams and housekeeping prioritise room readiness and manage staffing.

Extranet

A web-based portal that allows hotel managers to manually manage their listing, rates, availability, and restrictions on an OTA platform. Examples include Booking.com Extranet and Expedia Partner Central. A channel manager automates most of this, syncing data in real time.

F

Flash Sale

A time-limited promotional rate available for a short window, typically 24 to 72 hours, designed to generate immediate bookings during low-demand periods.

Folio

The individual account record for a guest or group booking, containing all charges, payments, and credits accumulated during the stay. At check-out, the folio becomes the final invoice. SabeeApp's PMS generates and manages folios automatically, with SabeePay handling payment collection.

Forecasting

The process of predicting future room demand, occupancy, and revenue based on historical data, booking pace, local events, and market trends. Accurate forecasting informs rate strategy and staffing plans.

Front desk

The primary guest-facing department of a hotel, responsible for check-in, check-out, guest requests, and problem resolution. Also called reception or front office.

G

GDS (Global Distribution System)

A network platform used by travel agencies and corporate travel managers to search and book hotel rooms, flights, and car rentals globally. The three major GDS networks are Amadeus, Sabre, and Travelport. SabeeApp supports GDS connectivity through its Reconline integration.

GDPR (General Data Protection Regulation)

EU legislation governing the collection, storage, and processing of personal data for European residents. Hotels that accept bookings from EU guests must comply with GDPR requirements for data storage, consent management, and guest data requests.

Group reservation

A reservation for multiple rooms made on behalf of an event group, corporate party, or tour group, typically at a negotiated group rate.

Guest experience

The overall perception a guest forms through every interaction with a hotel, from the initial booking to post-stay follow-up. It is shaped by staff behaviour, room quality, communication speed, and how frictionless the check-in and check-out process feels. In competitive markets, guest experience is often a stronger differentiator than price.

H

Hostel

A budget accommodation type offering shared dormitory rooms, primarily for backpackers, students, and solo travellers. Hostels typically also offer private rooms at lower price points than hotels. Revenue management for hostels operates on a per-bed basis rather than per room.

Hotel chain

A group of hotels operating under a shared brand, management structure, or ownership, benefiting from centralised marketing, loyalty programmes, and standardised operations.

Housekeeping

The department responsible for the cleanliness, hygiene, and presentation of hotel rooms and public spaces. SabeeApp's Housekeeping App gives housekeeping teams real-time task assignments and room status updates directly on mobile.

Housekeeping list

The daily task list for the housekeeping team, showing which rooms need cleaning, the priority order, and the type of cleaning required: arrival clean, stay-over, or departure. A cloud PMS like SabeeApp generates this list automatically based on live reservation data.

I

iCal

An internet calendar format used to share availability data between systems. In hotel distribution, iCal is a basic method for syncing reservations between platforms. Direct API connections are significantly more reliable and update in real time.

Incentive

A trip or reward provided by a company to employees for outstanding performance. Incentive groups are a high-value MICE segment for hotels with event facilities.

Independent hotel

A hotel that operates under its own brand and management, not affiliated with a chain or franchise. Independent hotels compete on personality and service rather than brand recognition, which makes distribution strategy and direct booking particularly important.

Integration

A connection between two software systems that allows them to share data automatically. SabeeApp integrates with 200+ third-party tools including revenue management systems, door lock platforms, and accounting software through its marketplace.

L

Last minute

A promotional rate offered close to the arrival date to fill remaining inventory. Used alongside early bird pricing to maximise occupancy across the full booking window.

Listing

A hotel's advertisement on an OTA, GDS, or metasearch platform. An optimised listing with accurate rates, high-quality photos, and complete property information directly impacts booking conversion.

Loyalty programme

A marketing programme that rewards guests for repeat stays with points, discounts, upgrades, or free nights. Loyalty programmes drive direct bookings and reduce long-term reliance on OTAs.

M

Market segmentation

The practice of dividing guests into groups based on shared characteristics, such as booking channel, purpose of travel, length of stay, or geography, and applying different pricing or marketing strategies to each. Common hotel market segments include leisure transient, corporate, groups, and OTA.

Master price

The default rate plan in a hotel PMS from which all linked rate plans are automatically calculated. When the master price changes, all connected rates update according to predefined rules, avoiding manual updates across every channel.

Meeting

A business event held in hotel meeting rooms, typically for internal company use. Generally single-day events for smaller groups.

Metasearch engines

Online platforms that aggregate hotel rates from multiple booking channels and display them side by side, allowing travellers to compare prices. Major metasearch platforms include Google Hotels, TripAdvisor, Trivago, and Kayak. Hotels should ensure their direct booking engine rates are competitive on metasearch to capture commission-free bookings.

MICE

An acronym for Meetings, Incentives, Conferences, and Exhibitions. The segment of hospitality focused on corporate events and group travel. MICE business generates significant revenue from both accommodation and ancillary services.

N

Night audit

The end-of-day process in a hotel PMS that reconciles all financial transactions, updates room status, generates daily management reports, and rolls the system into the next business day. In modern cloud PMS systems like SabeeApp, night audit runs automatically.

No show

A confirmed reservation where the guest does not arrive and has not cancelled in advance. Hotels typically apply no-show fees according to their cancellation policy.

O

Online Travel Agency (OTA)

An OTA is an online platform that sells hotel rooms on behalf of properties in exchange for a commission, typically between 15% and 25% of the room rate. Major OTAs include Booking.com, Expedia, Airbnb, and Agoda. While OTAs provide significant booking volume and visibility, hotels benefit from converting OTA guests into direct bookers over time. SabeeApp's Channel Manager connects to 60+ OTAs with no added commission.

Opaque rate

A discounted rate not publicly visible to all guests, accessible only through a loyalty membership or coupon code. Used to offer lower prices selectively without undermining general rate parity.

Overbooking

Accepting more reservations than physical rooms available, based on forecasted cancellations and no-shows. When managed well, it maximises occupancy. When managed poorly, it results in guests being walked to a competitor property.

P

Package

An offer bundling accommodation with additional services, such as breakfast, spa treatments, tours, or parking, sold at a single price. Packages increase total revenue per booking and differentiate the hotel's direct offer from OTA listings.

PAX

An abbreviation for passengers or persons, used across the travel and hospitality industry. A "4-pax booking" means a reservation for 4 guests.

Payment gateway

Technology that securely processes credit and debit card transactions between a guest and a hotel. Modern hotel payment gateways handle tokenisation, 3D Secure authentication, and PCI compliance automatically. SabeePay is SabeeApp's integrated payment gateway.

Payment policy

The rules governing when and how payment is collected for a reservation, whether full prepayment, a deposit, or a credit card guarantee is required, and at what stage.

PCI compliance (PCI DSS)

Payment Card Industry Data Security Standard compliance is a mandatory requirement for any business processing credit card payments. PCI-compliant hotel software handles card data in an encrypted, secure environment. SabeeApp and SabeePay are PCI compliant.

PMS (Property Management System)

A property management system is the central software platform for hotel operations, handling reservations, room assignments, check-in, check-out, housekeeping scheduling, billing, and reporting from a single interface. A cloud-based PMS like SabeeApp connects directly to the channel manager and booking engine, keeping all reservation data synchronised without manual updates.

POS (Point of Sale)

A system that processes payments at any revenue-generating point within a hotel: the front desk, restaurant, bar, or spa. Hotel POS systems integrate with the PMS to post charges directly to a guest's folio. SabeeApp's Cash Drawer module manages on-site cash and POS transactions.

Property ID

A unique identifier assigned to each hotel within a PMS and on OTA extranets. Used to map room inventory and rates correctly during channel manager setup.

PSD2 (Payment Services Directive 2)

An EU directive introducing Strong Customer Authentication requirements for online payments. Hotels collecting payments online from EU guests must comply with PSD2.

R

Rack rate

The official maximum published price for a hotel room before any discounts, promotions, or negotiated rates are applied. The starting point from which all other rates are derived.

Rate fencing

Restrictions applied to a rate plan to control who can access it, for example requiring non-refundable payment, a minimum length of stay, or advance booking. Rate fencing prevents guests eligible for premium rates from accessing discounted ones.

Rate linking

Connecting rate plans to a master price so that when the master rate changes, all linked rates update automatically according to predefined rules. Rate linking reduces manual pricing work significantly.

Rate modifier

A rule defining how a linked rate plan differs from the master price, expressed as a fixed amount or percentage above or below. For example, a non-refundable rate might be set at 15% below the master price.

Rate parity

The practice of maintaining the same room rate across all distribution channels for the same room and conditions. Rate parity agreements with OTAs have been widely revised in recent years, with some markets now allowing hotels to offer exclusive lower rates on their own website.

Rate plan

A defined pricing option for a room, including the rate and associated conditions: cancellation policy, meal plan, and payment terms. Hotels typically operate multiple rate plans simultaneously. SabeeApp's 4.0 Inventory Grid allows hoteliers to manage all rate plans from a single restructured view.

Release period

The minimum number of days in advance that a reservation must be made for a specific rate plan or channel. An early bird rate, for example, may require a 30-day release period.

Reservation

A confirmed arrangement holding a specific room for a guest on specified dates. Modern reservations flow automatically from OTAs and direct channels into the hotel's PMS via API.

Returning guest

A guest who has stayed at the same property on a previous occasion. Returning guests typically have higher lifetime value and lower acquisition cost than new guests.

Revenue management

The discipline of optimising room rates and availability to maximise revenue based on forecasted demand. The core principle: selling the right room to the right guest at the right price through the right channel at the right time. SabeeApp's PMS and Channel Manager provide the tools to execute this.

Room capacity

The maximum number of guests a room can accommodate, broken down by adults, children, and infants. Defining room capacity accurately across all channels prevents booking errors.

Room Only

A rate plan that includes accommodation only, with no meals included.

Room type

A category of rooms grouped by shared characteristics: size, bed configuration, view, or amenities. Common room types include Standard, Superior, Deluxe, and Suite. Each room type has its own rates and availability.

S

Serviced apartment

A fully furnished apartment available for short to medium-term rental, typically including kitchen facilities and regular cleaning. Popular with relocating professionals and longer-stay business travellers who need more space and flexibility than a hotel room.

Smart lock

A keyless electronic door lock allowing guests to access their room via smartphone, access code, or key card. Smart locks reduce front desk workload, enable contactless check-in, and can be managed remotely. SabeeApp integrates with smart lock providers through its marketplace.

SSL security

SSL (Secure Sockets Layer) is a security protocol that encrypts data between a user's browser and a website. Hotels collecting booking or payment data online must have SSL in place. SabeeApp's booking engine operates on SSL-secured infrastructure.

Staycation

A leisure stay at a hotel in or near a guest's own city, rather than travelling to a different destination. Staycation demand has grown significantly since 2020. Independent urban and suburban hotels can target this segment with short-break packages.

T

Tour operator

A company that designs and packages holiday itineraries, including accommodation, transport, and activities, selling through travel agents or directly to consumers. Tour operators typically negotiate allotment contracts with hotels at discounted net rates.

Travel agency

A business that sells travel packages to end customers, often booking accommodation through GDS systems or OTA platforms.

U

Upsell

The practice of encouraging a guest to purchase a superior room category or additional services at an incremental price. Effective upselling increases revenue per booking and enhances the guest experience. SabeeApp's Guest Advisor enables automated upsell offers before and during a stay.

V

VAT (Value Added Tax)

A consumption tax applied to hotel room rates and ancillary services. VAT rates for accommodation vary by country. Hotels are required to display VAT-inclusive pricing and report VAT separately in their accounting.

W

Walk-in guest

A guest who arrives at the hotel without a prior reservation and requests a room. Walk-in guests provide supplemental occupancy but require careful management to avoid displacing pre-booked guests.

Wholesaler

An intermediary company that purchases hotel rooms in bulk at net rates and resells them through travel agents, OTAs, and tour operators. Hotels working with wholesalers trade lower per-room rates for guaranteed volume.

Y

Yield management

Yield management is the original term for what is now more broadly called revenue management: adjusting room prices dynamically based on anticipated demand to maximise total room revenue. The concept originated in the airline industry and was adopted by hotels in the 1980s. Today, yield management and revenue management are used interchangeably.