Target Cost

Methodology to determine the costs that in the design phase of product-service already identifies the target cost that the company must be able to bear to deliver a product to a specific market segment at a price that the particular segment is willing to pay.  ...

Target Pricing

This technique of “price construction” focuses on the expectations of the target audience; the price reflects the expected one.

Tariff Degression

Mechanism by which the various levels of the tariff structure must be articulated in such a way as to encourage the client to switch to a higher rate class with little difference in cost. In this way the value for money increases faster than the increase in room...

Tariff Dilution

When products are sold at a price lower than the market would be willing to pay.

Tariff Quotas

Subset of the inventory of available units dedicated to sale at a certain rate to maximize the REVPAR. They serve to guide the booking process in order to maximize the revenue available according to the forecast demand, hence protecting higher rates from the...

Tariff Range

Range (floor – ceiling)  within which a tariff may vary according to pressure of demand, while at the same time maintaining desirability for the target segment as defined by strategic marketing.

Tariff Wall

The set of conditions applied to a Tariffed Product so that it may be reserved. The conditions afford (or deny it) access  to a certain tariff by a certain segment. They are linked to the tariff rate by an inverse ratio in such a way that a high tariff rate usually...

Threshold Price

Price below which it is not viable to accept a reservation.

Time Limit

The time limit gives guests the opportunity to book without the guarantee of a credit card. A time is fixed (e.g. 16:00) by which the client must check-in. After that time, the hotel may feel free to sell the room to others. Time limits, due to the lack of guarantees...

Total Average Room Profit – TARP

It is calculated by adding the ARP (Average Room Profit) to the GOPPAC of the various services/products multiplied by the FI (Frequency Index). It determines the average total profit (inclusive of additional services) per room sold.

Tour Operator – TO

A company which, through contracts with different levels of risk (charter contracts, empty for full hotel, allotment with right of withdrawal, etc.), acquires room availability, but does not directly manage (property, joint investment, joint ventures, etc ..), a range...

Transfer

Part of the refused demand that has been transferred to another hotel or inventory for which the reservation was registered by the original hotel/inventory. Transient A client who makes a reservation directly, without the help of intermediaries offering negotiated...

Travel Agent – TA

High street retailer for hotel products and other tourism related services.   

Trigger Points

In Fluid Pricing trigger pricing indicates the occupancy thresholds according to which rates are defined.

Turndown Service

In high-end hotels a service preparing rooms for the night. It may include a second cleaning of the room or the bathroom or both, putting the guest’s pajamas on the pillow and slippers beside the bed, the bed linen is turned down for sleeping, turning on the night...

Twin Bed Room – TWN

Indicates a room with two separate single beds. Sometimes the room arrangement means the two beds can be pushed together in order to increase the availability of double rooms.

Two Letter Code

Also known as a Chain Code, it is the bi-literal code which uniquely identifies a chain or a provider in GDS systems (e.g. Garden INN = GI, Atahotels = AQ); when combined with an alphanumeric code of 5/6 characters it identifies a particular facility.

Types Of Rooms

Group of rooms that has the same rate level, the same kind of furniture, the same view, the same floor.