Management Contract

Specific type of hotel management contract with different applicatory derivations. This contract provides that an international company or an asset management company (tier 1 and 2) shall manage the hotel assets. It is an atypical contract largely used in the Common...

Mark-Up

Increase of the price to meet the company financial needs.

Mark-Up Pricing

Pricing strategy that implies an increase of the fixed- and semi-fixed costs which allows the achievement of a desired profit that covers the costs themselves.   EXAMPLE   Fixed Costs + Semi-fixed Costs = 50 €. Mark-Up adopted =49,5%.        Price = 74,75...

Markdown Pricing

Rather aggressive pricing technique according to which the price decreases below the total costs in order to cover only the variable costs and also a part, even minimal, of the fixed ones. This is the case of Last minute sales, when units are sold at a...

Market Penetration Index – MPI

It shows the market penetration in terms of occupancy [Hotel Occupancy Rate] ∕ [Competitive Set Occupancy Rate]x 100. If equal to 100% the index indicates a market share that is congruent with the potential capacity of the facility. If above 100% it indicates a market...

Market Segment

Group of customers with similar characteristics: reasons to travel, typologies of travel, purchasing methods, etc…

Market Share

The market share of a hotel is represented by the ratio between its number of occupied rooms and the number of occupied rooms in the hotels of the competitive set. When the market share matches the fair share all the visitors of a destination will be equally...

Marsha

Marriot’s proprietary global reservation system. It’s an important Revenue management and CRS tool.

Master Rate

Rate from which one or more rate plans/room rates are derived.  

Match

Pricing strategy that implies the same price as competitors.

Maximum Length Of Stay – MLOS

Clause that imposes a specific minimum night stay. Maximum Limit Of Booking Booking limit assigned in advance to every allotment with the aim to protect those allotments earning higher rates from the cannibalization produced by selling at reduced...

Mean Absolute Error – MAE

The Mean Absolute Error is a quantity used to measure how close forecasts and predictions are to the eventual outcomes. It is given by the average deviation from the actual historical number of room nights and the number of room nights predicted by the forecast,...

Mean Absolute Percentage Error – MAPE

It is a measure of the accuracy of a forecasting method. It is expressed by a percentage and given by the average deviation from the actual historical number of room nights and the room nights predicted by the forecast, repeated for n observations.         1   n...

Meeting Incentive Conference Event – MICE

It is a type of tourism in which large groups, usually planned well in advance, are brought together for a particular purpose and make reservations in one or more hotels for the services they need (Rooms, congress halls, restaurants).

Menu Engineering

Restaurant Revenue Management basic tool used to assemble the restaurant menu according to the performance of every dish. The aim is to sell the right meal at the right price to the right customer at the right time.

Merchant Rate

Contracts with operators, such as HotelBeds, that provide for a better placement of a facility among the results of a search through dedicated rates and allotment agreement. Facilities set net rates while operators add a mark-up.

Midweek – MW

Days of the week (Tuesdays, Wednesdays, Thursdays) when high customer demand for business reasons is expected (in suitable destinations).

Milestone

Observation windows set on predetermined time intervals, distributed along the lead time (usually 3 months, 1 month, 15 days, 7 days, 3 days) and considered with reference to the reservations of a yield class. They represent snap-shots of sales and are used to...

Milestone- 1

Represents the date of arrival (daily data are recorded the next night).

Minimum Level Of Protection

Minimum number of reservations guaranteed to an allotment in order to assure the availability of higher rate rooms for the future.

Mix

Term borrowed from General Marketing that refers to the different typologies of customers determined by different grouping methods (nationality, distribution channel, market segment, etc…).

Modifiable / Non-Modifiable

A reservation can be either modifiable (the date of arrival, the number of nights, etc… can be changed) or non-modifiable. It is always important to be aware of conditions and possible penalties.

Multichannel Marketing Strategy – MMS

Strategy that implies varied and multiple sales channels (both innovative and traditional), coherent and integrated for communication, distribution, sale and assistance to the customer.