Why should one join the hotel industry?

Hotel terms

Technical terms used by hotels

There are many terms used in the hotel and travel industry, so we've put some of them together for you here.

Availability

The number of available hotel rooms.

channel

A sales-generating booking channel e.g. a provider like expedia.com or HRS are so-called channels.

CTA - No arrivals

As soon as a "CTA" (closed to arrival) - closed for arrivals for one day has been set, the guest cannot book this day as an arrival day, he travels before and stays beyond this day, however, this is possible.

CTD - No departure

As soon as a "CTD" (closed to departure) - closed for departures for one day has been set, the guest cannot book this day as a departure day; if he or she departs earlier or later, this is possible.

Expiration days

Expiry days marks the number of days from which the allotment can no longer be booked by the guest. Example: Cut off 7 days means that everyone can still book freely up to 8 days before arrival, after which the system automatically closes the allotment.

Extranet

The "front end" of a hotel booking page shows the customer all hotel information and enables online booking. The extranet is also referred to as the "back end" of this website, to which the hotel can log in to manage data such as availability, prices and restrictions.

brand

With a brand or English "brand" is meant a hotel chain or group (e.g. Holiday Inn or Hilton) to which a hotel can join. A hotel can also change brands, e.g. from Best Western to Wyndham.

GDS - Global Distribution System

A GDS is a system that offers IT solutions for travel agencies in order to make flights, hotels and rental car bookings worldwide. The 4 big GDS companies are Amadeus, Galileo, Saber and Worldspan. The moving hotel data is transmitted to the GDS via a CRS and the Pegasus switch. Internet booking channels with which the hotel does not have a direct contract can also take over the data from hotels via Pegasus and make bookings based on the GDS availability / prices.

Lead days

see also "Cut off days"

Surcharge & margin

Markup and margin are typically used by tour operators buying in net rates.

We are giving an example below, as there is likely to be confusion here:

The sales price for the double room is EUR 100 per night and a guest books an overnight stay with an operator with whom your house works. The costs for the guest are EUR 100.00.

The organizer charges EUR 25 as commission, with EUR 75 remaining as the net rate for the hotel.

Markup
The organizer's share is equal to a third of the amount that the hotel collects (75/3 = 25).
This means that the markup is 33.33% (1/3 = .3333 x 100 = 33.33%) for the calculation in the organizer's extranet. The organizer's income is always 33.33% based on the amount for the hotel (excluding VAT)

Margin
The organizer's commission is always a quarter of the amount paid by the guest - EUR 25 out of EUR 100.
This means that the margin is 25.00% for this channel in the organizer's extranet. The organizer thus receives 25% of the income that the guest pays for the service.

That means - a surcharge of 33.33% corresponds to a margin of 25.00% for your hotel. These two different perspectives (one from the net (operator) and one from the gross (hotel) perspective) clearly explain the different names.

Maximum nights or maximum length of stay (also known as "maximum nights (on arrival)")

Restricting the maximum length of stay restricts availability, as a maximum number of nights cannot be exceeded for this day of arrival.

"Maximum nights (continuous)" or maximum length of stay (continuous)

A restriction of the "maximum nights (continuous)" restricts the availability, since a maximum number of nights cannot be exceeded for the entire period of stay.

Minimum nights or minimum length of stay (also known as "minimum nights (on arrival)")

A minimum stay on arrival limits availability, as you can and must only book this certain number of nights.

"Minimum nights (continuous)" or "Minimum stay (continuous)"

A restriction by "minimum nights (continuous)" restricts the availability, as you can and must only book this certain number of nights for the entire period of your stay.

Net rate

In this case, it is not about VAT, but about rooms that are sold via the organizer at net rates. If a guest pays EUR 100 for an overnight stay (sales price of the hotel), the hotel receives EUR 75 from the organizer on the shelf, which means the net rate is EUR 75.

PMS - hotel software system

Hotel management software.

Rates parity

You can only guarantee rate parity if there is an identical rate structure in all sales channels. This is important for several reasons. On the one hand, it increases the price integrity of the hotel, so that the guest feels safe to have received the best rate no matter which channel he used to book. On the other hand, there are relationships with your sales partners, who all expect the best price from you.

Selling price

The sell rate is the price paid by a guest / customer who has booked via a website on the Internet, a travel agency or directly at the hotel.

Booked up

Fully booked (English - stop sell) - this means blocking a room type or the entire hotel for a period of time on the hotel's booking channels. This is usually done when all or more rooms than available for the day / period have been sold.

Tour operator / wholesaler

Distribution partners are known by a wide variety of names - Wholesaler from the English means that hotel room prices are purchased net (i.e. without commission). So-called merchant models or tour operators also usually buy "net".

Customer references


San Clemente Inn