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30 Cards in this Set
- Front
- Back
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Achievement Factor
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the percentage of the rak rate that a hotel actully receives; in hotels not using rev. mang. software, this factor is generally approximated by dividing the average room rate by the potential rate
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Booking lead time
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A measurement of hoe far in advance bookings are made
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break even analysis
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an analysis that measures the revenue it takes to cover all costs
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close to arrival
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A yield management availability startgey where guests can make a reservation as long as they arrive before that date
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contribution Margin
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sales less cost of sale for either an entire operating department or a given product
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cost per occupied room
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how much it costs to sell a certain product
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discount grid
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a chart indicating the occupancy percentage necessary to achieve equivalent net revenue
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displacement
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turning away guests
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dynamic packaging
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customization of travel packages to a specific guests needs. good in off seasons
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equivalent occupancy
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change in Average room rate, the occupancy percentage required to produce the same net revenue form the price before
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fair market share
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a compression of a hotels ADR and occupancy with their competition to determine if they are getting fair share.
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fixed costs
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costs that remain constant even when sales volume vary
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forecast
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a projection of estimated business volume
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GOPPAR
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a revenue measurement that focuses on gross operating profit per available room
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group attrition
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under consumption of, or failure to achieve, a committed number of group room nights
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group booking pace
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the rate at which group business is being booked
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hurdle rate
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in the context of revenue management, the lowest acceptable room rate for a given date
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marginal costs
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the variable or added costs of selling a product, incurred only if the room is sold; also called cost per occupied room
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minimum length of stay
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a strategy where a reservation requires a specif number of nights to be accepted
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potential average rate
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a statistic that effectively combines the potential average signal and double rates, multiple occupancy percentage and rate spread to produce the average rate that would be achieved if all rooms were sold at there full rack price
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rate potential percentage
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the percentage of the rack rate that a hotel actually revives computed by dividing the actual average rate by the potential average room rate, also called the achievement factor `
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rate spread
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the mathematical difference between the hotel's potential average single rate and potential average double rate
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revenue management
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a technique based on supply and demand to maximize revenue by lowering and rising prices
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RevPAG
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a revenue measurement that focuses on revenue errand per available guest
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RevPAR
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a revenue measurement that focuses on revenue per available room
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sell-through
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A strategy that works like a minimum length of stay requirement, except that the length of the required stay can begin before the date the strategy is applied
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stay-sensitive hurdle rate
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a hurdle rate that varies with the length of the guests reservation
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wash factor
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the deletion of unnecessary group rooms from a group block
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weighted average contribution margin
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in a multiple product situation, an average contribution margin for all operated departments that is weighted reflect the relative contribution of each department tho the establishment's ability to pay fixed costs and generate profits
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yield statistic
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the ratio of actual rooms revenue to potential rooms revenue
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