Knowledge category · 29 articles
Revenue Management
Hotel forecasting, pricing, inventory, pace, pickup, demand planning, need dates, compression, and performance optimization.
What Is a Hotel Demand Calendar?
A hotel demand calendar is a planning tool that organizes expected demand conditions, events, need dates, compression dates, group activity, seasonality, and other market signals across future dates.
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Benchmarking
What Is Average Rate Index (ARI)?
Average Rate Index (ARI) compares a hotel’s average daily rate with the average daily rate of its competitive set for the same period.
Revenue Management · BenchmarkingWhat Is Market Penetration Index (MPI)?
Market Penetration Index (MPI), often called occupancy index, compares a hotel’s occupancy percentage with the occupancy percentage of its competitive set for the same period.
Revenue Management · BenchmarkingWhat Is Revenue Generation Index (RGI)?
Revenue Generation Index (RGI), often called RevPAR index, compares a hotel’s revenue per available room with the RevPAR of its competitive set for the same period.
Revenue Management · BenchmarkingWhat Is a Hotel STR Report?
A hotel STR report is a benchmarking report that compares a participating hotel’s occupancy, average daily rate, and revenue per available room with an approved competitive set and market reference for defined periods.
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Compression Nights
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Demand Analysis
What Is Hotel Lead Time?
Hotel lead time is the interval between the date a reservation is made and the guest’s arrival date.
Revenue Management · Demand AnalysisWhat Is Hotel Pace?
Hotel pace describes how current booking activity or on-the-books position compares with an earlier period, a historical pattern, a forecast, or another defined reference at the same point before arrival.
Revenue Management · Demand AnalysisWhat Is Hotel Pickup?
Hotel pickup is the net change in rooms, revenue, or another booking measure for a future stay date between two observation points.
Revenue Management · Demand AnalysisWhat Is a Booking Curve?
A booking curve shows how reservations, rooms, or revenue accumulate for a stay date as the arrival date approaches.
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Demand Calendar
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Forecast Accuracy
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Forecasting
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Group Evaluation
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Group Wash
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Hotel Performance Metrics
What Is ADR?
Average daily rate (ADR) is the average rooms revenue earned for each revenue-generating room sold during a specific period. It is generally calculated by dividing rooms revenue by rooms sold.
Revenue Management · Hotel Performance MetricsWhat Is Hotel Occupancy?
Hotel occupancy is the percentage of available rooms that are occupied or sold during a defined period. A common formula is occupied rooms divided by available rooms, multiplied by 100.
Revenue Management · Hotel Performance MetricsWhat Is RevPAR?
Revenue per available room (RevPAR) is a hotel performance metric that shows rooms revenue generated for each available room, whether the room was sold or not. It can be calculated as rooms revenue divided by available rooms, or as ADR multiplied by occupancy expressed as a decimal.
Revenue Management · Hotel Performance MetricsWhat Is RevPOR?
Revenue per occupied room (RevPOR) measures defined hotel revenue generated for each occupied room during a period.
Revenue Management · Hotel Performance MetricsWhat Is TRevPAR?
Total revenue per available room (TRevPAR) measures total hotel operating revenue for a period divided by available guestrooms for the same period.
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Inventory Controls
What Are Hotel Length-of-Stay Controls?
Hotel length-of-stay controls are inventory rules that shape which arrival-and-departure combinations may be booked for selected dates, room types, rates, or channels.
Revenue Management · Inventory ControlsWhat Is a Closed-to-Arrival Restriction?
A closed-to-arrival (CTA) restriction prevents new reservations from arriving on a selected date for the controlled inventory, while reservations staying through that date may remain bookable depending on system configuration.
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Market Segmentation
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Need Dates
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Pricing Controls
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Pricing and Rate Strategy
What Is BAR Pricing?
Best available rate (BAR) commonly refers to the lowest publicly available, generally unrestricted rate offered for a specific room type and stay date at a given time. Hotels often use BAR as a flexible public-rate baseline from which other rates are derived or compared.
Revenue Management · Pricing and Rate StrategyWhat Is Dynamic Pricing?
Dynamic pricing is the practice of changing hotel room prices over time in response to demand, remaining inventory, booking patterns, market conditions, and the hotel’s commercial strategy.
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Revenue Management Fundamentals
What Is Hotel Revenue Management?
Hotel revenue management is the disciplined practice of forecasting demand and using price, availability, inventory controls, and distribution decisions to sell hotel capacity in a way that supports the best achievable revenue and long-term business mix.
Revenue Management · Revenue Management FundamentalsWhat Is Yield Management?
Hotel yield management is the use of price and inventory controls to decide which demand to accept for limited, perishable room capacity, with the aim of improving the revenue produced by that capacity.
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