Plain-English meanings of the terms you will hear in revenue management and OTA management.
Rooms sold ÷ rooms available
Room revenue ÷ rooms sold
Room revenue ÷ rooms available
(same as ADR × occupancy)
| Term | Meaning |
|---|---|
| ADR (average daily rate) | The average room revenue earned per room sold: room revenue divided by rooms sold. |
| BAR (best available rate) | The standard public nightly rate. Other rate plans and discounts are built from it. |
| Channel manager | Software that connects your property to OTAs, so rates and availability update everywhere from one place. |
| Commission | The fee an OTA charges for a booking, usually a percentage of the booking value. |
| Comp set | The group of similar nearby properties you compare your rates and results against. |
| Direct booking | A booking made straight with your property, by website, phone or WhatsApp, with no OTA commission. |
| OTA (online travel agent) | A platform such as Booking.com or MakeMyTrip where travellers book, and which charges the property a commission. |
| Occupancy | The share of available rooms that were sold: rooms sold divided by rooms available. |
| Perishable inventory | A room that is not sold tonight cannot be sold again later, which is why pricing each night matters. |
| Rate parity | Keeping your rates consistent across every channel, including your own website. |
| RevPAR (revenue per available room) | Room revenue divided by rooms available, which is the same as ADR multiplied by occupancy. |
| Revenue management | Setting the right price for the right guest at the right time to earn the most profit. |
| Room mapping | Matching your room types to the correct room types on each OTA, so guests see the right room and rate. |
| Seasonality | Predictable changes in demand through the year, such as festivals, weddings and holidays. |
Ask for a free audit and we will explain what your figures mean for your property.
