Hotel Industry Abbreviations - Jargon Buster
Whether you're new to hospitality or simply want to brush up on some of the most used industry phrases, we’ve created our helpful jargon buster to break down the most common abbreviations used across the hotel sector.
From financial metrics to tech systems, understanding these acronyms is essential to running (and marketing) a successful property.
ADR - Average Daily Rate
ADR represents the average rental income per paid occupied room in a given time period. It’s calculated by dividing total room revenue by the number of rooms sold.
ADR = Total Room Revenue / Number of Rooms Sold
Why it matters: ADR is a core metric for understanding room pricing performance, excluding comp rooms.
RevPAR - Revenue Per Available Room
RevPAR helps assess how well a hotel fills rooms at an average rate. It’s calculated by multiplying ADR by occupancy rate or by dividing total revenue by total available rooms.
RevPAR = ADR x Occupancy Rate
Why it matters: It balances rate and occupancy, a crucial measure of revenue performance.
RevPOR - Revenue Per Occupied Room
RevPOR measures the revenue generated from each occupied room, including room rate and ancillary spending.
RevPOR = Total Revenue / Number of Occupied Rooms
Why it matters: Helps assess guest spend and guides upsell strategies.
GOP - Gross Operating Profit
GOP refers to total revenue minus operating expenses (excluding taxes and interest).
Why it matters: A key indicator of how efficiently a hotel runs its core operations.
GOPPAR - Gross Operating Profit Per Available Room
GOPPAR gives a per-room view of gross profit by dividing GOP by the number of available rooms.
GOPPAR = GOP / Available Rooms
Why it matters: A holistic profitability metric combining revenue and cost control.
NOI - Net Operating Income
NOI is the total income remaining after deducting all operating expenses, but before taxes and financing costs.
Why it matters: Helps assess the property's income-generating potential, especially for investors.
Occ. - Occupancy
Occupancy is the percentage of available rooms that are sold during a specific period.
Occupancy = Rooms Sold / Rooms Available x 100
Why it matters: One of the most basic but vital performance metrics.
ARR - Average Room Rate
ARR is another term sometimes used instead of ADR (Average Daily Rate).
Why it matters: Often interchangeable with ADR, depending on region or system.
LOS - Length of Stay
LOS refers to the number of nights a guest stays during a booking.
LOS = Total Nights / Total Bookings
Why it matters: Helps optimise pricing and package offers.
PMS - Property Management System
PMS is software used to manage daily operations: reservations, check-ins, room status, and billing.
Why it matters: The operational hub for hotel staff and integrations.
POS - Point of Sale
POS systems handle in-venue transactions (e.g. at the bar or restaurant).
Why it matters: Integrates sales and reporting for non-room revenue streams.
CRS - Central Reservation System
CRS is the software that manages availability and bookings across multiple channels (direct website, OTAs, call centre).
Why it matters: Ensures rate consistency and centralises inventory control.
OTA - Online Travel Agency
OTAs like Booking.com or Expedia list hotel rooms online in exchange for commission.
Why it matters: Increases visibility but can cut into profit margins.
GDS - Global Distribution System
GDS platforms (Amadeus, Sabre) connect hotels to travel agents for global bookings.
Why it matters: Essential for attracting corporate and international business.
FOH - Front of House
FOH refers to guest-facing operations such as reception, concierge, or restaurant service.
Why it matters: The part of the business that shapes first impressions.
BOH - Back of House
BOH includes non-guest-facing roles such as kitchen staff, housekeeping, or finance.
Why it matters: Keeps the hotel running behind the scenes.
FOM - Front Office Manager
FOM manages the front desk team, guest services, and reservations.
Why it matters: A critical leadership role in guest satisfaction.
GM - General Manager
GM is the person overseeing the entire property, from operations to finance.
Why it matters: Ultimately responsible for property success and team performance.
EB - Early Bird
EB rates or offers are discounts available to guests who book early. The phrase ‘early bird discount’ might come to mind for offers such as 2-for-1 meals if you dine before 4:30pm.
Why it matters: Early bird discounts and offers drive advanced bookings and help secure early revenue.
BAR - Best Available Rate
BAR is the lowest rate publicly available to guests, often updated daily.
Why it matters: Maintains pricing transparency and is used for comparison across channels.
LRA - Last Room Availability
LRA means a hotel will sell its last available room at a contracted corporate rate.
Why it matters: Guarantees availability to preferred clients or partners.
CM - Channel Manager
CM software connects your PMS to booking channels, keeping availability and rates in sync.
Why it matters: Reduces double bookings and rate disparity.
RMS - Revenue Management System
RMS uses data, algorithms, and demand forecasts to optimise pricing.
Why it matters: Helps maximise revenue through dynamic pricing strategies.
F&B - Food & Beverage
F&B covers all food and drink services within the hotel. You’ll definitely see this one across resource materials, social media and official documents.
Why it matters: A key revenue stream and experience enhancer for guests.
FBM - Food & Beverage Manager
FBM oversees all F&B operations: restaurants, bars, room service and events.
Why it matters: Responsible for food quality, service, cost control, and profitability.
BB - Bed & Breakfast
BB is a room rate that includes breakfast only.
Why it matters: A popular rate type, especially for leisure guests.
HB - Half Board
HB includes breakfast and one additional meal (usually dinner).
Why it matters: A great way to upsell meal plans while offering value.
FB - Full Board
FB includes breakfast, lunch, and dinner.
Why it matters: Often used for longer stays or leisure packages.
AI - All-Inclusive
AI includes accommodation, all meals, drinks, and sometimes activities. This one is likely going to trip a few people up and therefore, try not to be confused with the other AI (Artificial Intelligence).
Why it matters: Popular in resort settings for guests seeking hassle-free stays.
M&E - Meetings & Events
M&E covers all corporate or social events hosted at the hotel.
Why it matters: A key revenue stream for city and resort hotels alike.
ADR - Average Daily Rate
ADR measures the average income earned per sold room.
Why it matters: Core to any hotel’s revenue analysis. (Repeated for importance)
TRevPAR - Total Revenue Per Available Room
TRevPAR includes all revenue streams (rooms, F&B, spa) per room available.
Why it matters: Shows full monetisation of your hotel inventory.
EBITDA - Earnings Before Interest, Taxes, Depreciation & Amortisation
EBITDA is a financial metric that evaluates a hotel’s profitability before fixed costs.
Why it matters: Commonly used by investors to assess operational success.
ROI - Return on Investment
ROI measures the return generated from marketing, renovations, or operational investment.
ROI = (Gain – Cost) / Cost
Why it matters: Helps determine whether your strategies are financially worthwhile.
MICE - Meetings, Incentives, Conferences, Exhibitions
MICE refers to business tourism involving events, incentive trips, and large group bookings.
Why it matters: Highly lucrative segment, especially in cities and resorts with function space.
RFP - Request for Proposal
RFPs are documents sent by companies to hotels requesting bids for group stays or events.
Why it matters: Winning RFPs can lead to valuable corporate business.
AV - Audio Visual
AV refers to the tech needed for events: screens, microphones, projectors, etc.
Why it matters: Important for M&E sales and ensuring event success.
CRS - Central Reservation System
CRS is a software solution used by hotels to manage room availability, rates, and bookings across different distribution channels.
Why it matters: Ensures that rates and availability are consistent across all booking platforms, including OTAs and direct channels.
PMS - Property Management System
PMS is a software used by hotels to manage operations such as guest check-in/check-out, housekeeping, room assignments, and billing.
Why it matters: The backbone of hotel operations, helping to streamline guest service, staff coordination, and reservations.
LDT - Last Departure Time
LDT refers to the latest possible time for a guest to check out.
Why it matters: Important for planning housekeeping schedules, managing occupancy, and ensuring rooms are prepared for incoming guests.
ARR - Average Room Rate
ARR calculates the average revenue per room sold, helping to measure the pricing strategy.
Why it matters: Often interchangeable with ADR, ARR can be used to assess overall room revenue performance.
COGS - Cost of Goods Sold
COGS refers to the direct costs incurred by a hotel for producing goods or services it sells (e.g., food, beverages, and amenities).
Why it matters: Vital for understanding profit margins in F&B, spa services, and other areas of hotel operations.
T&A - Time & Attendance
T&A tracks the time employees spend working and is used to monitor hours worked, manage payroll, and ensure regulatory compliance.
Why it matters: Helps with labor management, ensuring cost control while maintaining service quality.
STR - Smith Travel Research
STR is a company that provides benchmarking data and analytics for the global hotel industry.
Why it matters: STR data helps hotels gauge their performance against competitors and industry standards, especially in terms of occupancy, ADR, and RevPAR.
Get in Touch
We hope you’ve found this list of hotel industry acronyms to be incredibly useful. If you’d like to understand more about the industry and learn a little more about our expertise, take a look at our blog! Alternatively, if you’d like to discuss how we can apply our skills to help your business, please get in touch today.