Occupancy

Indicates the maximum number of people per typology of room. It can also refer to the percentage index used to compare the average occupancy with competitors and coopetitors.

Occupancy Index

[Hotel Occupancy] / [Competitive Set Occupancy]  x 100 If the index is equal to 100% the hotel has the same occupancy (expressed in percentage) of its competitors, if above or below 100% the occupancy is respectively lower or higher than the competitive...

Occupancy Rate

Ratio of the number of rooms actually rented and the number of rooms available at a given time or for a specified period.

Odd Numbered Pricing

Pricing technique largely used in the hotel and restaurant sectors. It implies a large use of prices ending with 9 or .9.

ODD Pegasus

Acronym for Online Distribution Database. Born as a switch for GDS interface, today Pegasus is a world leader in hotel services and technologies supply. Pegasus’ services include centalized booking systems, electronic distribution systems, payment services, property...

On the Book Last Year – OTBLY

Business (rooms and∕or incomes) procedure that takes into account a specific period of time analysed on a specific date of the previous year. E.g.: reservations in March 2013 analysed on 20th April 2013

Online Travel Agency – OTA

Travel agency, using the internet to sell travel related services. Usually it acts as a mediator between customers and service suppliers and charges total price with its fees. It can either sell only one kind of service or a multitude (accommodation, transportation...

Opaque Model

A model that sells rooms directly via the internet. It is opaque because the consumer only sees the category but not the specific product (hotel name or brand) and details are only disclosed after purchase. Sector leaders are Priceline and Hotwire. This method is...

Opaque Rates

Rate Plans visible only to operators who meet the entry requirements. Opaque rates also include blind sales solutions, allowing the user to purchase a hotel without knowing the name but only the price, neighborhood and classification (stars).

Outlets

The departments of a hotel (not including rooms) that generate incomes: restaurant, bar, pool, spa, gym, etc..

Over Commission

Additional commission to the intermediary provided by the contract. It is an incentive to sell more units of a product or a reward for the achieved results.  

Overbooking

Practice by hotels of confirming reservations beyond their capacity in expectation of last minute cancellations and no-shows. It can be accidental or part of a deliberate policy.

Oversale

Practice of selling more rooms than the actual capacity which causes the necessity to reallocate customers to other facilities.