Rate

Sales tariff of a product or services.

Rate Allocator

Rate allocators are simplified versions of a CM. This software simply allows the allocation of rates and availability but does not permit the management of the online distribution channels. E.g. If a room is sold on Expedia the rate allocator would not reduce the...

Rate Categories

Creation and management of different rate categories to be proposed on the market for a fixed date or a fixed number of rooms.

Rate Checker

Tool used to display rates of competitors for a fixed number of months.

Rate Class

Group including tariffs of the same category.

Rate Code

Reference code used by management systems (e.g. PMS) for the collection of data relative to a particular tariff.

Rate Efficency

It represents the relation between the average rate of each yield class and the total average rate.

Rate Parity

Rate strategy which offers the same rate with the same conditions in all distribution channels. Often parity is guaranteed by a contract clause.

Real Demand

The Real Demand is given by the sum of the demand that a hotel can accommodate and the demand that the hotel is unable to accommodate, for reasons of unavailability, rate and capacity. Recapture Recapture occurs when after a Turnaway a hotel is able to capture the...

Refused Demand

Part of the demand that cannot be accepted in a hotel or inventory for reasons of capacity limitations or other restrictions (for example, tariff barriers). This demand may be permanently lost (spoiled) or returned (recapture). The spill is the sum of definitively...

Release – REL

If there are unsold rooms in an allotment they can be released after a release date allowing the hotel to consider them part of the availability again. E.g. An allotment contract may provide for a D-5 release date, which means that if there are rooms unsold 5 days...

Relocation

Action through which the hotel, not being able (overbooking) or not willing to accept the customer’s reservation, deals with his/her relocation, therefore to allocate him/her in a nearby property of the same level (or higher) as the original reservation can’t be...

Request For Proposal – RFP

All the conditions proposed for an agreement, usually in contract with companies or business travel agencies. Conditions regard rates, booking and cancellation policies, availability and the included and non-included services.

Resistance Rate

Price which halts (or almost) the pick-up of reservations.

Return On Assets – ROA

Business profitability rate. It is represented by the ratio between the earnings before taxes (EBIT) and the total return on assets. If multiplied by the leverage (financial leverage index) it gives the ROE.

Return On Equity – ROE

Equity profitability rate. It is given by the ratio between the EBIT and the equity. It measures the risks of an investment compared with other kinds of safe investments (e.g. treasury bills).

Return On Sales – ROS

Ratio between GOP and Sales volume. It shows the sales profitability, that is, the hotel capability of generating earnings from sales.

Revenue

Income generated in a certain period of time. Calculated as earnings after taxes.

Revenue Management – Strategic Level

The strategic level of revenue management is the foundation of the entire strategy and concerns two fundamental aspects: the demand segmentation and the rate partition among those segments. This type of activity is carried out every six months or at longer intervals....

Revenue Management – Operative Level

The Operative level is the final part of the revenue management process (see definitions of RM strategic and tactical level). This is the moment when the hotel effectively sets the booking limits in compliance with what has been decided at the tactical level. This...

Revenue Management – Tactical level

The tactical level follows the strategic level (see RM strategic level) and gathers all those activities aimed at the definition of the booking limits in order to establish the number of rooms to be sold for each segment and within a limited period. These activities...