Hotel revenue management glossary
Rate shopping, rate parity, ADR, RevPAR, pick-up and other core terms: a short definition, the formula and an example.
ADR (Average Daily Rate)
ADR (Average Daily Rate) is the average room revenue earned per occupied room, calculated by dividing room revenue by the number of room nights sold.
BAR (Best Available Rate)
BAR (Best Available Rate) is the lowest flexible rate a hotel offers publicly for a given night, with no membership, code or prepayment condition.
Booking pace
Booking pace compares the reservations on the books for a future period with last year, budget or forecast at the same point before arrival.
Booking.com search rank
Booking.com search rank is the position at which a hotel appears in the results list when a guest searches a city or area for given dates.
Competitive set (comp set)
A competitive set (comp set) is the group of usually 4–10 hotels a property benchmarks its rates and performance against: the hotels that genuinely compete for the same guest.
Lead time (booking window)
Lead time is the number of days between the date a reservation is made and the guest's arrival date; it shows how far in advance guests book.
Median competitor rate
The median competitor rate is the middle value when the comp set's prices for the same night are sorted from lowest to highest; it is far less affected by extreme prices than the average.
Minimum length of stay (MinLOS)
Minimum length of stay (MinLOS) is a sales restriction that sets the shortest stay accepted for a given arrival date.
Occupancy rate
Occupancy rate is the number of rooms sold on a night or over a period divided by the number of rooms available, expressed as a percentage.
Pick-up
Pick-up is the net number of bookings added for a given stay date between two measurement points (for example, yesterday to today): new bookings minus cancellations.
Rate parity (channel parity)
Rate parity means a hotel's price for the same room, date and conditions appears the same on every sales channel: its own website, Booking.com, Expedia and others.
Rate shopping
Rate shopping is the regular collection of competitor hotels' prices from sales channels and their comparison with your own rate; the tool that does it is called a rate shopper.
RevPAR (Revenue Per Available Room)
RevPAR (Revenue Per Available Room) is room revenue divided by all of a hotel's available rooms, sold or not; it combines price and occupancy in one number.
Stop sale
A stop sale is a hotel temporarily closing sales for specific dates, room types or channels; no new bookings are accepted on that channel for those dates.