Fair Price – FP

Fair price is calculated by dividing the sum of the desired profit and total costs by the number of rooms expected in the forecast. This formula can be applied to different time intervals (day, month, year) and shows the average price (ADR or ARR) for the achievement...

Fair Share

The market share (in decimal form) held by a hotel is obtained by dividing the number of its rooms by the total number of rooms in the local hotels of the same rating (including our hotel).   EXAMPLE If the total number of rooms in hotels with a four star rating...

Fit Rate

Special rate for an individual client granted to a Tour Operator. In general it’s a net hotel rate. The Tour Operator will charge its fee due to intermediary operations.

Fixed Cost Per Room – FCR

Index which indicates the fixed costs for each room sold. It is obtained by dividing all the fixed costs in the period under analysis (year, month, day) / by the number of rooms sold in that period.

Flash Sale

Limited time offers can provide incomes through special promotions and discounts which can be booked only during a short period (e.g.: 1 week). It represents the core business of companies such as Groupon, Groupalia, HotelYo, VoyagePrivè, etc.

Flat Rates

These rates are usually available only for a fixed period of time and cannot be modified. FIT rates are an example of flat rates, they may vary according to the season.

Food & Beverage – F&B

Department of the hotel administration dedicated to the satisfaction of the customer’s needs of food and beverages. Every aspect that concerns costs, management and food and beverage supplies belongs to this SAB (Strategic Area of Business).

Forecast

Forecast or calculation of the probable production/sales for a fixed date. Forecasting is not limited to the forecast process but is a resource that must be analysed and perfected during the elaboration of the final balance in order to improve future...

Forecast Horizon

Number of days on which forecast calculations are based. In a yield system forecasts are approximations by defect based on a 365 day period.

Free Sale

Free room availability, with no allotment. The accommodation facilities are free either to stay open or close.

Frequency Index – FI

Average number of people per room. It is obtained by dividing the number of guests by the number of occupied rooms.

Front Office

Department dedicated to the reception and welcoming of the public. This task requires knowledge of communication marketing in order to improve the hotel Revenue strategies.  

Full Board – FB

Treatment which includes breakfast, lunch and supper (in addition to overnight stay)

Full Cost Pricing

Pricing strategy that consists in increasing the total costs in order to achieve the desired profit.   EXAMPLE Total costs = 65€, Mark-up 15%. Price = 74,75 €

Fully Booked

Term which indicates the lack of available rooms, due to full reservation or rooms out of order.