Hotel industry jargon Part 4

There are many jargons used in the hotel industry that many people might find them quite common but may not be to others.

I have written 3 articles about hotel jargons earlier, but I find that the list of wordings continues to grow and I decided to write another article named Hotel industry jargon Part 4. 

My earlier articles on similar topic are 20 most common hotel industry jargon, Hotel industry jargon Part 2 and Hotel industry jargon Part 3.

Hotel jargons are commonly used in the conversation amongst hoteliers.  For someone who has been in the hotel industry for years, the jargon wordings become part of his or her daily conversation.  But this may not be the case for someone who just enter the world of hotel industry as well as for non-hotelier.

In this writing, I will highlight 20 hotel jargons and provide a simple explanation to each jargon hoping to provide information to everyone needed.

1. Rate parity

Rate parity in hotels will refer to monitoring and applying consistent rates across all distribution channels.   For example, the displayed rate in the hotel website is the same rate shown in 3rd party channels, then this is rate parity.

2. Consortia

Consortia in hotel can be defined as groups of independent travel agents that are managed under one umbrella.  The purpose is to get the preferred hotel’s rates that those travel agents are unable to obtain directly from hotels.

3. Add-ons

The term add-ons refer to additional value or benefits to be included in the room rate quoted.  Some example of add-ons is breakfast, parking, early check in, late check out and these can be at no additional charge or with charge depending on how the hotel prepares the quotation.

4. LRA

LRA stands for Last Room Availability which means if a hotel still has particular contracted room available to sell, then a company with LRA contract can buy that particular room at the agreed contracted prices and terms.  LRA term is usually used to quote a yearly contracted rate for a particular company.  LRA can be offered at no additional charge or with additional charge depending on the hotel policy.

5. Non LRA

Non LRA refers to non-Last Room Availability.  This means a hotel allows to limit the number of rooms sell to a company at an agreed contracted rate and afterwards, a hotel can increase the room rate if necessary, for example, due to high occupancy.

6. Pricing Grid

Pricing Grid can also be called as Pricing Structure which consists of different types of room rates to be offered to range of market types.  In the Pricing Grid, a hotel can create dynamic BAR (Best Available Rate), corporate rates, group rates, third party rates, etc.

7. Business volume

Business volume can be defined as the number of productions generated by a particular company, whereby, in this situation, volume is usually referred to number of room nights.  In a hotel, different level of business volume will be used as a parameter to create different level of corporate rates available to be quoted for a company.

8. Key accounts

Key accounts will refer to all important customers for your hotel.  Usually, key accounts will be categorized based on the number of room nights or revenue generated to a hotel in which key account manager of a hotel will be assigned to maintain and to continue developing the accounts under his or her responsibility.

9. RFP

RFP stands for Request for Proposal.  This is a document that is submitted by a buyer to a hotel outlining the buyer’s requirements such as room with breakfast, different type of rooms required, early check in fee, late check out fee, meeting space requirements and to request a proposed cost based on those outlined requirements.

10. Wholesalers

A wholesaler is a 3rd party agent that sells hotel room nights. Wholesalers will get special agent room rates from a hotel in which wholesalers will prepare their selling prices to be sold to their sub-agent’s partners.

11. Market segment

Market segment in hotel industry is referred to the way of a hotel categorizes the different type of client that support the hotel.  Market segment can consist of such as, public, corporate, leisure, government, group, 3rd party partner.  This segment can be broken down into sub-segment, such as, public direct, public website, corporate transient, corporate group, government FIT, government group, group leisure, group meeting.

12. FIT

FIT stands for Frequent Individual Traveler or Free Independent Traveler.  A FIT is an individual or a group with less than 7 rooms travelling together and booking hotel rooms at the same periods of stay.  Some hotels will also categorize a booking of less than 10 rooms as FIT customers.

13. GIT

GIT stands for Group Independent Travelers or Group Inclusive Tour.  GIT is a group of people book several hotel rooms (above 7 or above 10 rooms) and staying at the same periods.  When staying in a hotel, GIT customers can have free schedule so they can become adventurer or arrange specific itinerary from a tour operator or attend specific meeting in or outside the hotel.

14. Surcharge

Surcharge is defined as additional charge that a hotel adds to the existing facilities or services to be enjoyed by customers.  Some example of surcharge is additional room charge applied during busy periods such as New Year, long weekend, holiday periods, additional charge applied to have a room upgrade to the next level, etc.

15. Seasonal room rate

Seasonal room rate is referred to room rate applicable only during a specific season, for example, for summer season, winter season, holiday season, peak season, soft season.  During the process of developing pricing structure, a hotel sales team will decide on the number of seasons applied in the pricing structure.

16. Hotel distribution channels

Hotel distribution channels can be defined as several sources that receive and send room booking to a hotel.  Some examples of hotel distribution channels are hotel website, direct booking, telephone, email, online travel agent, etc.

17. B2B

B2B stands for Business to Business means a business transaction between one business to another, such as, wholesaler in the travel industry.

18. B2C

B2C stands for Business to Customer means a business transaction is made between one business directly to a customer as the end user who will purchase the product.

19. Market intelligence

In the sales marketing of a hotel, market intelligence will refer to conducting some research to find data, information related to market, supply, demand that will be used to support the sales marketing strategies.

20. Hotel competitors set

Hotel competitors set is a list of direct and indirect competitors to your hotel created to review and analyze your hotel performance against the competitors.

Ready to explore these jargons and use them as part of your professional conversation.

Have an enjoyable reading and have a productive day.