Hotel abbreviations list and terminology dictionary

What is a hotel abbreviations list?

A hotel abbreviations list is a reference tool that can be used by hotel staff and industry professionals to quickly understand common acronyms and hotel terms, to onboard new staff and enable more efficient communication and operations.

Even if you’re new or you’ve been in the hospitality industry for quite a while, there will always be some technical terms to keep you on your toes.

So, if you’re learning more about new hotel terminology or need some help deciphering hospitality jargon, we’ve put together a useful list of over 50 hotel terminologies – the commonly used terms that all independent hoteliers should know.

Hotel abbreviations dictionary and hospitality terms from A to Z

To kick off our hotel terms dictionary, let’s look at a list of shortened hospitality terms (A-Z), in the form of hotel abbreviations and acronyms.

ABVPOR

This stands for average booking value per available room. To calculate this figure, you must subtract your cost per occupied room (CPOR) from your ADR and then multiply that by the number of occupied rooms.

ADR

This means average daily rate. It’s key performance indicator (KPI) used by hotels to calculate the average revenue earned per occupied room in a given time period.

Average length of stay (ALOS)

The average number of nights that guests stay at a hotel, typically calculated by dividing the total number of nights stayed by the total number of bookings.

Best available rate (BAR)

The lowest publicly available rate for a room at a hotel on a given date. BAR is closely related to best flexible rate (BFR), which is the lowest unrestricted price (free from any limitations on booking cancellations or modifications) that a guest can book.

BEO

A Banquet Event Order (BEO) is a detailed document that outlines all requirements for a specific event, such as food, setup, and schedules, used by hotel staff to coordinate and manage events.

Best rate guarantee (BRG)

A promise made by hotels to offer the best possible rate on their own website compared to any third-party booking channels.

BOH

This stands for back of house which refers to any staff or operations that have little or no direct contact with hotel guests. Back of house roles in a hotel can include kitchen staff, human resources, accountants, maintenance supervisors, and so on.

CRM system

A customer relationship management system is software that helps the hotel to communicate and engage with customers. This is more of a tech term as opposed to hotel industry jargon, but it may crop up quite often.

CRS (central reservation system)

The application used to manage a hotel’s distribution and hotel room bookings. Typically will be used to reach guests via multiple distribution channels such as travel agencies (via GDS), online travel agencies (such as Expedia, Orbitz, Travelocity, Priceline and others), direct to the hotel website, and telephone (either via call centre, direct to property or both).

Closed to arrival (CTA)

A restriction applied by hotels where guests are not allowed to check in on a particular date.

Closed to departure (CTD)

A restriction applied by hotels that prevents guests from checking out on a particular date.

DND

Do Not Disturb (DND) is a sign or signal, often hung on the hotel room door, used by hotel guests to indicate that they don’t want to be disturbed by staff or housekeeping.

ETA

This stands for estimated time of arrival. In the hotel industry, this is mostly used as a rough guide of when a guest is expected to check-in. It can also refer to guests arriving for a specific event, or vendors arriving with deliveries.

F&B

This stands for food and beverage and usually refers to the hotel bar and/or restaurant.

FOH

This stands for front of house, which means anything that is customer-facing regarding the hotel. Front of house staff include receptionists, concierge, porters, room service, and so on. Front of house areas include common spaces like the reception, lobby, bar, and lifts.

Gross operating profit per available room (GOPPAR)

A hotel revenue metric that measures the gross operating profit generated per available room in a given time period.

KPI

Key performance indicators are measurable outcomes that can demonstrate how well the hotel is performing. Some examples of hotel KPIs include ADR, ALOS, occupancy rate, and online reviews, among others.

Maximum length of stay

A policy set by hotels that limits the number of consecutive nights a guest can stay at the property.

MICE

Meetings, Incentives, Conferences and Exhibitions (MICE) is the segment of the hospitality industry that deals with large events and corporate groups.

MLOS

This stands for minimum length of stay.

MPI

This stands for market penetration index, which is a unit of measurement that shows how the occupancy of a hotel compares to that of a preselected group of competitors. 

NRB

Negotiated rate business refers to clients or accounts who have agreed on a special rate with the hotel. This is particularly common for hotels that are part of a wider brand or chain as companies tend to have a negotiated business rate across multiple locations.

OTA

Online travel agents can bring in a lot of revenue for hotels. As you step into a managerial role, you will most likely learn more about the relationship between your hotel and the OTAs that they partner with.

OTB

On The Books (OTB) refers to reservations or sales that have been confirmed and recorded by the hotel.

PAX

This is hospitality industry jargon for the amount of people in a booking or event. For example, if your events room had a party booking with 20 guests, you would call it a 20 pax event.

PMS

This stands for property management system, which is a software tool that allows you to easily and efficiently manage your property’s operations online, giving you more time, freedom, and control.

Price match guarantee (PMG)

A promise by the hotel to match or beat any lower price found for the same room on another booking platform.

Revenue per available room (RevPAR)

A key performance metric that calculates the revenue generated per available room, taking both occupancy and average daily rate into account.

POS

Point of Sale (POS) is a system used by hotels to process payments for goods or services, such at the front desk, or in on-site restaurants, bars and day spas.

Revenue per occupied room (RevPOR)

A metric that measures the total revenue generated by each occupied room, excluding vacant rooms.

SOP

This is an acronym for standard operating procedure.

STR Report

A Smith Travel Research (STR) Report provides data on everything from occupancy rates and revenue, helping hoteliers compare their performance to their competitors.

Total revenue per available room (TrevPAR)

A performance metric that calculates the total revenue generated from all sources (rooms, F&B, etc.) per available room.

YTD

Year To Date (YTD) refers to the period from the beginning of the year (either calendar year or fiscal year) up to the current date, and is commonly used to track financial or operational performance.

Most frequently used hotel terminology glossary

Now that we’ve covered common hotel terminology abbreviations, let’s turn our attention to more generic hotel words: a list of hospitality vocabulary and hotel lingo for employees to get their heads around. 

Availability

The number of vacancies possible for a specific type of accommodation for a specific set of dates.

Booking engine

An application that is embedded in a hotel’s website that allows guests to make direct bookings online. It’s typically connected to a hotel’s property management system.

Channel manager

A software application used to manage a hotel’s online distribution channels. It allows hotel operators to efficiently manage rates and availability across various OTAs and other distribution channels, ensuring that information is consistent.

Channel mapping

Channel mapping links a hotel’s booking system to various online travel agencies, ensuring that room availability is updated across all platforms.

Commission

A fee that a hotel pays to a travel agent or OTA in return for selling rooms on their behalf. The commission is typically a percentage of the total booking cost.

Double booking

A double booking occurs when a room is mistakenly reserved for two guests at the same time.

Extended stay

This is hotel terminology for when a guest’s stay is more than five consecutive days. Depending on the hotel’s policy, an extended stay can sometimes mean that the guest is charged on a weekly basis rather than a nightly one.

House Count

The house count is the total number of guests currently staying in a hotel.

Invoice

A bill issued by the hotel to a guest detailing the charges for their stay, including room, meals, and other services.

Lead Time

The period between when a guest makes a booking and their scheduled check-in date.

Metasearch

Metasearch engines compare hotel rates from various booking platforms, helping travellers find the best deals. Examples include KAYAK, TripAdvisor, Google Hotels and Trivago.

Net rate

A net rate is the price a hotel charges OTAs, booking channels and other intermediaries, excluding commission fees.

Package Rate

A package rate combines a hotel room with additional services, like meals or activities, usually offered at a discounted price.

Payment gateway

A payment gateway is a secure system that processes online payments made by guests during the direct booking process.

Rate plan

A rate plan is a set of prices that hotels create for specific room types and package options.

Service contract

An agreement between a hotel and an external service provider, such as maintenance, housekeeping, or IT services, to perform specific tasks for a set period.

System of record

A software system that maintains a complete and authoritative record of transactions, typically used to store guest details, bookings, and financial records.

Vacancy

The availability of a hotel room for a guest to book.

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Claire Moseley,

Owner

Derwent House

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Popular hospitality terminology for hotel management

If you’re stepping up to manage a property or own and operate one yourself, you may want to start familiarising yourself with the hotel management terminology below.

Audit trail

An audit trail is a record of all financial transactions within a hotel, and is used to ensure transparency and accountability.

Channel management

The process by which a hotel manages its availability and rates across multiple distribution channels (such as OTAs and travel agents) to optimise room sales.

Comp set

Short for competitive set, this refers to a list of the hotel’s main direct competitors.

Device asset

Technology or equipment that is owned by the hotel and used in daily operations, such as computers, tablets, and mobile devices.

Dynamic packaging

The process of creating personalised travel packages that combine hotel rooms, flights, car rentals, and other services based on guest preferences.

Function room occupancy

The percentage of a hotel’s meeting and event spaces that are occupied over a given period.

Gross margins

The difference between the revenue generated by a hotel and the cost of the goods or services sold, expressed as a percentage.

Hotel sustainability

Hotel sustainability refers to a group of practices and strategies that aim to reduce a hotel’s environmental impact, such as energy-saving measures or waste reduction.

Inventory grid

This refers to where information is kept about the management of day-to-day pricing, availability, and restrictions.

Loyalty program

A marketing strategy where guests accumulate points or rewards for repeat stays, which can be redeemed for discounts or other perks.

Net sales

The total revenue generated by a hotel after deductions, such as taxes and discounts.

Night audit

A process carried out by hotels at the end of each day to balance accounts, review financial transactions, and prepare for the next day’s operations.

Overbooking

A practice where hotels accept more reservations than there are rooms available, based on the assumption that some guests will cancel or not show up.

Rate parity

Ensuring that the same room rate is available across all distribution channels, including the hotel’s website, OTAs, and travel agents.

Room block

A group of hotel rooms that are reserved for a specific event or group, often at a discounted rate.

Sundries

In hotel accounting sundries refers to irregular and insignificant expenses that don’t need to be listed separately, so are grouped under the ‘sundry’ label.

Turnover rate

The rate at which hotel staff leave and are replaced by new employees.

Understaffing

An understaffed hotel does not have enough employees to effectively manage operations, which can lead to a subpar guest experience.

Hotel jargon related to finance and revenue

Effective hotel finance management is absolutely crucial for any independent hotel, and is only possible if you have an understanding of the hotel lingo used in relation to accounting and revenue. To help you out, let’s review some key finance hotel jargon examples.

Competitor-based pricing

Competitor-based pricing sees a hotel set its rates based on the pricing strategies of nearby competitor hotels.

Demand-based pricing

This refers to the shifting of rates and prices depending on how the market is performing. A common example of this is raising room prices around the holidays.

Dynamic pricing

Dynamic pricing is another term for demand-based pricing. This practice can also be referred to as fluid pricing and market-driven pricing. So, if you hear any of these terms in the hotel industry — they all mean the exact same thing.

Early bird

A discount offered to guests who book their rooms well in advance of their stay.

EBITDAR

Earnings before interest, taxes, depreciation, amortisation and restructuring/rent costs (EBITDAR) is used to analyse the ability of a hotel to generate profits, even after spending huge rent or restructuring costs as a part of its operations.

Flash sales

Limited-time offers with deep discounts, typically used to drive short-term bookings and boost occupancy during low-demand periods.

Forecasting model

This refers to the statistical pattern and methods used to predict future demand for rooms as well as the ultimate revenue. This involves analysing previous data to make predictions about the future.

Lose-it rate

A discounted rate offered to a guest who is at risk of booking with a competitor. It’s often used to retain bookings that might otherwise be lost.

Market segmentation

Market segmentation aims to deliver more targeted and relevant marketing to potential guests by dividing hotel customers into categories based on a range of characteristics, from demographics to reason for travel.

Occupancy rate

Occupancy rate measures the percentage of available rooms that are occupied by guests at any given time.

Rate fences

This term is used in the hotel industry to refer to restrictions or requirements put in place around deals and discounts to safeguard the hotel’s profits. For example, offering a discounted price with the condition that guests must book in advance or pay a non-refundable deposit.

Revenue management

The process of dynamically adjusting room rates based on supply and demand to maximise a hotel’s revenue.

Revenue optimisation

Strategies designed to maximise a hotel’s income by managing pricing and inventory based on demand.

Stop sell

A restriction that a hotel can place on bookings for certain rooms, rates or dates, via certain channels, typically when demand is high.

Upselling

The practice of offering guests additional services or upgrades at an extra cost to increase revenue.

Value added pricing

The practice of charging a higher room rate by including additional services or amenities with the room booking.

Yield management

A pricing and revenue management strategy that involves adjusting prices based on external factors like predicted demand to maximise revenue (yield), with the aim of selling the right room to the right guest at the right time for the right price.

Hotel vocabulary for front office operations

The next stop in our hotel jargon dictionary: the front desk. Here the industry-specific hotel phrases mix with the terminology that your guests use, which can see the same concept be described in two very different ways. But by understanding, what the terms below mean, you can become a hotel terminology translator.

Advance Deposit

A payment made by guests before their stay to confirm their booking.

Direct Billing

Direct billing allows guests or companies to be invoiced for their stay after departure, instead of paying upfront.

Folio

A record of the charges and payments made by a guest during their stay. It’s typically presented to the guest at check-out.

Function room occupancy

The percentage of a hotel’s meeting and event spaces that are occupied over a given period.

Group booking

A reservation made for a large number of guests, often at a discounted rate.

No-show

When a guest does not arrive for their reservation without cancelling in advance.

Rack rate

This hospitality industry term refers to the basic rate of the room with no discounts applied.

Reservation

An arrangement for a guest to stay at a hotel on a specific date and time, typically confirmed in advance.

Room type

Categories of rooms in a hotel, which may vary by size, amenities, or layout. Common room types include standard, deluxe, suite, etc.

Turndown service

Preparing a current guest’s room during the day by tidying the bed and bathroom, and potentially providing small amenities like fresh towels or complimentary snacks.

Walk-in

A guest who arrives at the hotel without a prior reservation and requests a room.

Hospitality words list about housekeeping lingo

What is hotel terminology to your housekeeping staff? You might be surprised at how many industry-specific words the average housekeeper uses in their day-to-day role. These can include:

Attendant’s Closet

A storage area where housekeeping staff keep cleaning supplies and equipment.

Caddy

A portable container or trolley used by housekeeping staff to carry cleaning supplies, toiletries and other items while they servicing rooms.

Housekeeping asset

Items or equipment used by the housekeeping department to clean and maintain guest rooms and public areas.

Linen asset

Hotel-owned items such as sheets, towels, and other linens used in guest rooms and public areas.

Maintenance asset

Equipment or tools used by the maintenance department to ensure the proper functioning of hotel facilities and guest rooms.

Overstock

Having more housekeeping supplies or amenities on hand than are currently needed.

Squeegee

A tool used by housekeeping staff to clean glass surfaces, such as windows or mirrors.

Under-stocked

Having fewer supplies than necessary, which can result in delays or issues with delivering housekeeping services.

Zero waste

Initiatives that aim to eliminate waste by reducing, reusing and recycling materials used within a hotel.

Common hotel slang and phrases used in hospitality

Language is a living, breathing thing. Alongside established terms and jargon, less official hotel slang is also used within modern hotels. While this slang can vary a lot by location, a few of the more common terms include:

• “Bumped up” – Refers to a guest being upgraded to a better room category.
• “Close the books” – The end-of-day financial reconciliation, ensuring everything is accounted for.
• “Comp the stay” – Offering the stay free of charge due to a guest complaint or issue.
• “Skipper” – Refers to a guest who leaves without settling the bill.
• “The hotel’s running at full tilt” – Refers to the hotel being fully operational and busy.

The importance of understanding hotel abbreviations and hospitality terminology

Gaining an understanding of the relevant hospitality terms and hotel abbreviations helps both staff and leaders.

Staff can work more efficiently with guests, colleagues and management, and can make fewer mistakes. You team can gain a better understanding of the difference they’re making within your hotel. And departments can become more aligned and work better together.

Leaders, meanwhile, can negotiate deals with confidence and make a good impression on staff and stakeholders. They can gain a deeper understanding of business performance and how to improve it.

Having said all that, it doesn’t matter if you don’t know what something means – especially if you’re starting in a new position. Even industry veterans get stumped from time to time. The important thing is that you have the confidence to ask what a new or confusing term means, instead of guessing and hoping for the best.

And once you know what key terms mean, you can use them to enhance how you operate your hotel business, particularly when you combine this terminology with technology.