Inns, Guest Houses, Bed and Breakfasts Industry Terminology

ADR (Average Daily Rate)

A key revenue metric: total room revenue divided by the number of rooms sold for a given day or period.

Our ADR rose to $165 in July after we refreshed the rooms.; Offering a full-breakfast package helped lift ADR without discounting.; OTA promotions reduced our ADR by 8% last quarter.


ADA Compliance (Accessibility)

Meeting legal accessibility standards (e.g., the U.S. Americans with Disabilities Act) for facilities, guest rooms, and service, ensuring equal access for guests with disabilities.

We added a ramp and visual fire alarms to improve ADA compliance.; The ADA-compliant room’s bathroom has grab bars and a roll-in shower.; Train staff on ADA guest service to ensure compliance and comfort.


Advance Purchase Rate (APR)

A discounted, typically nonrefundable rate offered to guests who book and pay in advance.

Our 21-day APR is nonrefundable but 15% cheaper than BAR.; The APR boosted shoulder-season bookings by encouraging early commitment.; Make sure APR terms are clear in your booking engine to reduce disputes.


ALOS (Average Length of Stay)

The average number of nights guests stay per booking over a period.

Weekend events increased our ALOS from 1.6 to 2.3 nights.; Set a 2-night minimum to raise ALOS during peak foliage season.; Packages with late checkout can nudge ALOS up subtly.


Ancillary Revenue

Income from non-room sources such as F&B, parking, spa, tours, or add-ons.

Upselling late checkout and picnic baskets grew ancillary revenue.; We added bike rentals to diversify ancillary revenue.; Gift shop sales and wine tastings contribute to ancillary revenue.


BAR (Best Available Rate)

The publicly available, unrestricted base rate against which other rate plans are benchmarked.

Keep BAR public and unrestricted to anchor your rate structure.; Our BAR calendar reflects local demand and events.; Rate parity requires OTA prices not undercutting BAR.


Booking Engine (IBE)

An online reservation system on a property’s website enabling direct bookings and payment.

We integrated the IBE with our PMS to sync rates and inventory.; The IBE’s mobile UX improvements lifted direct conversions.; Add promo codes in the IBE to reward repeat guests.


Booking Window (Lead Time)

The time between when a reservation is made and the guest’s arrival date.

Our average booking window is 18 days, longer in summer.; Flash sales shortened the booking window but lifted occupancy.; Monitor booking window shifts to adjust pricing and staffing.


Break-even Occupancy

The occupancy percentage at which total revenue covers all fixed and variable costs.

With current costs, our break-even occupancy is 58%.; Raising ADR by $10 lowered our break-even occupancy.; Use break-even occupancy to guide low-season pricing decisions.


Cancellation Policy

Rules outlining when and how guests can cancel and whether fees apply.

We offer a 48-hour free cancellation policy except on holidays.; Nonrefundable APRs reduce cancellations but increase risk for guests.; Clear cancellation terms cut chargeback disputes.


Channel Manager

Software that distributes rates and inventory to multiple sales channels and keeps them synchronized.

Our channel manager prevents double-bookings across OTAs.; Push BAR and availability to all channels via the channel manager.; Rate updates propagate in minutes through the channel manager.


Chargeback

A payment reversal initiated by the cardholder’s bank due to disputes like fraud or service issues.

We received a chargeback after a no-show disputed the fee.; Detailed folios and signed policies help win chargeback cases.; Use SCA and clear terms to reduce chargebacks.


Check-in/Check-out

Operational processes and times when guests arrive and depart, including verification, keys, and folios.

Self check-in reduced lines and improved late arrivals.; We set 11 a.m. checkout to allow housekeeping turnover.; Offer contactless check-in via smart locks and pre-arrival forms.


CPOR (Cost Per Occupied Room)

Total operating costs divided by the number of occupied rooms over a period.

Laundry outsourcing lowered our CPOR by $3.; Tracking amenities usage helps manage CPOR.; Rising utilities pushed CPOR up despite stable occupancy.


CRS (Central Reservation System)

A system that centralizes rates, inventory, and reservations across one or multiple properties.

Our small group uses a CRS to share availability across inns.; The CRS feeds rates to the call center and website.; Integrate the CRS with the PMS for real-time inventory.


CTA/CTD (Closed to Arrival/Departure)

Restrictions that prevent check-in (CTA) or check-out (CTD) on specified dates to shape demand patterns.

Set CTA on Saturday to protect two-night stays.; A CTD on Friday improved weekend occupancy mix.; Use CTA/CTD sparingly to avoid guest frustration.


Customer Acquisition Cost (CAC)

The total marketing and sales cost required to acquire a booking through a given channel.

Meta campaigns cut CAC below OTA commission levels.; Add email capture onsite to lower CAC for repeat guests.; Compare CAC by channel to optimize spend.


Damage Deposit

A refundable hold or fee taken to cover potential damages or excessive cleaning.

We place a $150 hold as a damage deposit for pet rooms.; Document pre-existing conditions to avoid deposit disputes.; Refund the damage deposit within 48 hours post-stay if no issues.


Direct Booking

Reservations made through owned channels such as the property website, phone, or email, avoiding intermediaries.

Loyalty perks and free parking boosted direct bookings.; Our SEO and GBP profile drive more direct bookings.; Offer flexible policies to favor direct bookings over OTAs.


Dynamic Pricing

Adjusting room rates in real time based on demand, pace, compset, seasonality, and other variables.

We use an RMS for dynamic pricing tied to local events.; Raise rates as pickup accelerates closer to arrival.; Dynamic pricing lifted RevPAR without discounting weekends.


EBITDA

Earnings before interest, taxes, depreciation, and amortization; a measure of operating profitability.

Despite higher energy costs, EBITDA margin improved.; We track EBITDA quarterly to assess operating performance.; Renovations temporarily compressed EBITDA last year.


EMS (Energy Management System)

Technology that monitors and controls energy usage (HVAC, lighting) to reduce costs and improve sustainability.

Smart thermostats in the EMS cut energy use by 15%.; EMS occupancy sensors reduce HVAC in vacant rooms.; Tie the EMS to PMS for auto setpoints on check-in/out.


Fam Trip (Familiarization Trip)

Complimentary or discounted visits for media or agents to experience and promote the property.

We hosted a media fam trip to showcase our new suites.; Coordinate fam trip itineraries with local attractions.; Set blackouts so fam trips don’t displace peak revenue.


Forecasting (Demand)

Predicting future occupancy and revenue using historical data, on-the-books, pickup, and market intel.

Our 30/60/90-day forecast guides staffing and pricing.; Include on-the-books and pickup trends in the forecast.; Weather patterns can materially shift shoulder-season forecasts.


Front Desk Operations

Guest-facing processes including reception, reservations handling, concierge, and payment settlement.

Cross-train front desk to manage concierge requests.; A standard script improved front desk upsell conversions.; Audit front desk cash handling monthly.


GDS (Global Distribution System)

A network (e.g., Amadeus, Sabre, Travelport) used by travel agents to access rates and availability.

We connected to GDS via our channel manager.; Corporate agents booked midweek stays through the GDS.; Maintain rate parity when publishing GDS rates.


Google Business Profile (GBP)

Google’s listing for businesses that powers Maps and Hotel results, key for local SEO and direct traffic.

Keep GBP photos current to drive direct clicks.; Our GBP messaging captures last-minute questions.; GBP insights show where searchers found us.


GOPPAR (Gross Operating Profit Per Available Room)

Gross operating profit divided by available room nights; profit-based performance metric.

Improved F&B margins lifted GOPPAR despite flat ADR.; Track GOPPAR monthly for a truer view than RevPAR.; Cost control initiatives showed up in GOPPAR gains.


Guest Journey Mapping

Visualizing the end-to-end guest experience from discovery to post-stay to identify improvements.

We mapped the guest journey to fix pre-arrival gaps.; Journey mapping revealed check-in signage issues.; Add touchpoints for upsells in the pre-stay phase.


Guest Review Management

Processes for collecting, monitoring, and responding to guest reviews to improve reputation and SEO.

Respond to all reviews within 48 hours on OTAs and Google.; Automate post-stay emails to boost review volume.; Use feedback themes to guide room upgrades.


HACCP (Food Safety)

A systematic approach to food safety focusing on hazard analysis and critical control points.

Implement HACCP logs for breakfast prep and storage.; Staff completed HACCP training for allergen control.; A HACCP audit improved our kitchen workflow.


Housekeeping Turnover

The process and time required to clean and prepare a room between departures and arrivals.

Our average turnover time per room is 38 minutes.; Staggered checkout reduces housekeeping bottlenecks.; Par-level linens help speed turnover on peak days.


Innkeepers’ Liability Insurance

Coverage protecting the property for loss or damage to guests’ property and related liabilities.

Our policy covers guest belongings up to a set limit.; Verify that pets are included in innkeepers’ liability coverage.; The broker reviewed state statutes for liability minimums.


Inventory (Room Inventory)

The total sellable room nights, managed across dates and channels; also called availability or allotment.

Hold back inventory for direct channels on peak weekends.; Sync inventory in real time to prevent overbookings.; We allocate one room as maintenance inventory weekly.


Keyless Entry (Smart Locks)

Access control using smart locks or mobile keys, often integrated with PMS for contactless check-in.

Guests receive a unique code for keyless entry by SMS.; Smart locks reduce lost-key incidents and rekeying.; Integrate keyless entry with the PMS for auto code generation.


KPI (Key Performance Indicator)

Quantifiable metrics used to track performance and inform decisions.

Our core KPIs are ADR, RevPAR, and NPS.; Set weekly KPI dashboards for the team.; Tie bonus plans to KPI improvements like direct share.


Length of Stay (LOS)

The number of nights in a reservation; used for restrictions and pricing strategies.

We set a 2-night LOS minimum for holiday weekends.; LOS discounts encourage midweek extensions.; Monitor LOS mix to plan housekeeping schedules.


Loyalty Program

A structured set of benefits to encourage repeat stays and direct bookings.

Offer a free upgrade on the 5th stay to build loyalty.; Track repeat guests and perks in the PMS loyalty module.; A simple stamp card works for small B&Bs too.


Merchant vs Agency Model

OTA payment models: merchant (OTA collects and remits) vs agency (guest pays property, OTA takes commission).

Booking under the merchant model pays OTAs net rates.; We prefer the agency model for cash flow and VAT handling.; Understand fee structures by model before joining programs.


Metasearch

Platforms that compare rates across sites (e.g., Google, TripAdvisor) and drive traffic to booking channels.

We run Google Hotel Ads on a CPA basis for metasearch.; Metasearch campaigns lifted direct share by 12%.; Keep rate parity to stay competitive in metasearch auctions.


Minimum Stay Requirement

A restriction requiring guests to book at least a specified number of nights.

Set a 3-night minimum during the festival.; Drop the minimum stay midweek to fill gaps.; Communicate minimum stay rules clearly on OTAs and the IBE.


NPS (Net Promoter Score)

A loyalty metric based on the likelihood guests would recommend your property (promoters minus detractors).

Our NPS rose to 72 after refurbishing bathrooms.; Add a one-question NPS survey post-stay.; Segment NPS by room type to prioritize upgrades.


Occupancy Rate

The ratio of occupied rooms to available rooms over a period.

June occupancy hit 88% with strong weekends.; Balance occupancy and ADR to maximize RevPAR.; Forecast occupancy to schedule staffing efficiently.


OTA (Online Travel Agency)

Third-party booking platforms (e.g., Booking.com, Expedia) that sell rooms for a commission or margin.

We reduced OTA share by boosting direct offers.; Join an OTA’s preferred program only if ROI beats commission.; Sync content and photos across OTAs for consistency.


Overbooking

Accepting more reservations than available rooms to offset cancellations and no-shows.

We avoid overbooking due to small room count.; A no-show buffer helps reduce overbooking risk.; Have a walk policy ready if overbooking occurs.


PCI DSS

Security standards for handling payment card data to reduce fraud and protect guest information.

Tokenize cards to maintain PCI DSS compliance.; We completed annual PCI SAQ and vulnerability scans.; Avoid writing card numbers on paper to meet PCI requirements.


PMS (Property Management System)

Core software for reservations, check-in/out, billing, and room management.

Our PMS automates night audit and folios.; Connect the PMS to the channel manager and IBE.; Use PMS reports for occupancy and revenue analytics.


Rate Parity

The practice of keeping consistent rates across direct and third-party channels.

Maintain rate parity to avoid OTA penalties.; Offer value-adds, not lower rates, to drive direct bookings.; Monitor parity with a rate shopping tool.


RevPAR (Revenue Per Available Room)

Room revenue divided by available room nights; combines price and occupancy performance.

A higher ADR lifted RevPAR despite lower occupancy.; Compare RevPAR to compset to gauge competitiveness.; Weekend packages improved RevPAR and guest experience.


RMS (Revenue Management System)

Software that forecasts demand and optimizes pricing and restrictions to maximize revenue.

Our RMS recommends rates by date and room type.; Feed event calendars and comp data into the RMS.; RMS adoption improved price discipline and RevPAR.


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