Hotel Industry Jargon

Ever wondered what all those letters are beside your name when you check into a hotel? We love acronyms in the hotel industry, from customer segments to industry partners and performance measures, there’s nothing we haven’t compartmentalised and abbreviated! Learn all the hotel industry jargon from our glossary below, as we reveal the true meaning of those acronyms.

ADD-ONS – Extra products or services such as meals, upgrades or business services offered when booking a hotel room. Add-ons can be free as part of a promotional offer or bundled into the rate

ADR – Average Daily Rate

ADVANCE PURCHASE RATE – Price for a product or service purchased or guaranteed a specified number of days prior to arrival or use

AHA – Australian Hotels Association: The AHA is the peak national employer organisation representing the interests of hotels and resorts across Australia

ALLOTMENT – The number of hotel rooms available for sale by a supplier or agent

B&B – Bed & Breakfast

BAR – Best Available Rate

BE – Booking engine

BT – Business Tourism incorporating MICE travellers (Meetings, Incentives, Conventions and Exhibitions)

COMMISSION – Represents an amount payable to the seller of travel goods. Travel agents usually receive an amount averaging no less than 10% of the retail price. Wholesalers or Tour Operators usually receive 25–35% of the advertised price

COMP – Complimentary

CRS – Central Reservation System

CTA – Close to arrival

DBL – Double occupancy meaning the rate covers up to 2 people in the room

ETA – Estimated time of arrival

ETD – Estimated time of departure

FAM – Familiarisation tour (of hotel etc)

F&B – Food and Beverage

FIT – Fully Independent Traveller

FOC – Free of Charge

GDS – Global Distribution System used by online consumer travel sites to access hotel availability

GIT – Group Inclusive Tour or Group International Traveller

GROSS RATE – Commissionable or rack rate

GS – Guest Services

HOTEL MARKET SHARE – Calculated by dividing the number of rooms in a hotel by the number of competitive rooms in the hotel’s market. E.g. A 100 room hotel in a luxury market that has a total of 1,000 rooms is 10% (100/1,000).

INBOUND TOURISM – International tourist traffic coming into a country, with foreign dollars contributing to the export economy. Also referred to as export tourism

INCENTIVE TRAVEL – A trip offered as a prize or reward, particularly to stimulate the productivity of employees or sales agents

ITINERARY – A detailed description of the traveller’s trip in the sequence shown on their travel documents

MERCHANT RATE – The business model typically used by OTAs where the hotel offers a nett rate which the merchant marks up for sale to the public

MICE – Meetings, Incentives, Conferences and Exhibitions

MLOS – Minimum Length of Stay

NETT RATE – The wholesale selling price or the rate supplied to wholesalers who package your products and services

NS – No Show

OCC – Occupancy: The number of filled rooms / total number of rooms

ONLINE DISTRIBUTION – Using the internet and web portals to distribute or promote your product to consumers

OUTBOUND TOURISM – Residents travelling out of their country to an international destination

OTA – Online Travel Agent

PAX – Passengers

PENETRATION (and FAIR SHARE) – The amount of fair market share that a hotel is capturing. If the hotel is capturing its fair share of the market, then the penetration is 100%. Market penetration is typically based on occupancy, however ADR or RevPar penetration can also be used

PREFERRED RATE – A rate negotiated between a hotel company and a specific client. This is also known as a negotiated rate or volume rate

QR – Quality Assurance

RES – Reservation

REV PAR – Revenue Per Available Room

SIT – Special Interest Travel

SITE – Site Inspection

SRP – Special Rate Plan

TA – Travel Agent

TRAVEL DISTRIBUTION SYSTEM – A global network of independent businesses which allow consumers to research and book travel

TWN – Twin share meaning 2 separate beds in the room

VFR – Visiting Family and Friends

VIC – Visitor Information Centre

WTM – World Travel Market


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