Package (Bundle)

Travel packages consisting in combinations of room and other products∕services (e.g.: flight tickets). According to this method the customer will only see the total price of the package but he will not know the hotel rate (opaque model). Exemples of operators...

Partitioned Booking Limit – PBL

Inventory check based on a non-hierarchical partion of booking limits between yield classes. Yield classes are independent from one another.

Payoff

Value expressing decision utility, used in overbooking calculations, it indicates the maximum number of reservations to be accepted in order to optimize profit.

Penalty

Payment of a penalty due to violation of contract clauses that regulate cancellation or booking modification policies. Penalty if provided may consist in the payment of the first night, a percentage of the total stay or the whole stay.

Penetration Pricing

Pricing strategy where the price of a product is initially set lower than the competitors’ to rapidly reach a wide fraction of the market.  

Performance

Ratio between the actual generated income and the total potential income.

Pick Up

Pick up is a comparison technique between two different dates. Examples are: the number of reservations in the last 7 days, the difference in Revenue (differential) between a month and the same month of the previous year, etc…

Present Clients

Rooms which are effectively occupied and which have not yet been freed (clients present in the hotel).

Prestay System

Automatic computer system that permits to send emails to customers before they arrive, offering services or informing them about the hotel events and activities.

Price Bundling

Price bundling is a strategy consisting in the sale of packages including multiple products∕services. Additive bundling occurs when the price of package is equal to the sum of the prices of the single products∕services, there is no discount but the opportunity to buy...

Price Efficiency – PE

It can be analysed with reference to the kind of room or period (annual, monthly, daily). The formula is Average Room Price/ Congruent Price. If the ratio is below 1 the efficiency is low, if above 1 the efficiency is high (the higher the index, the higher the...

Prime Cost

In F&B management it represents raw material and labor costs necessary to produce a meal, a cocktail, etc… If calculated for the whole department it shows the total production cost.

Profit

Positive value of the difference between incomes and costs. Its synonyms are earnings and net gain.

Profit Objective

Profit which a company aims to achieve: it is good practice for the objective to be calculated through the creation of “advanced” budgets. Profit Management Profit Management is the discipline which focuses on the optimization of profit, given as the difference...

Prolonged Stay

Client who has reserved for a certain period and who then prolongs the reservation beyond the expected departure date.

Promospots

Form of GDS textual and graphic advertising addressing travel agencies.

Public Rates

Rate plans which are visible to everyone without access restrictions.