Accommodation and Food Services Industry Terminology

Accounts Receivable (AR)

Money owed to the business by customers or partners (e.g., corporate accounts, OTAs) for services already provided; managed through invoicing, credit terms, and collections.

extend direct-bill terms to a company for monthly settlement; reconcile AR aging to follow up on 60-day past-due invoices; apply payments from an OTA remittance to guest folios.

ADR (Average Daily Rate)

A key hotel metric: total room revenue divided by rooms sold (excluding complimentary rooms); indicates pricing power and rate strategy effectiveness.

ADR rose 6% YoY after a BAR strategy change; weekend ADR premium justifies a two-night minimum; segment ADR shows corporate outpacing leisure by $18.

All-Inclusive (AI)

A pricing model where room rate includes meals, beverages, and many activities; common in resorts and cruise lines, often with tiered inclusions.

switch to AI to simplify F&B forecasting; upsell to premium AI for top-shelf spirits; set AI package rules to manage breakage and margins.

Allergen Management

Policies and procedures to prevent allergen exposure and cross-contact, including training, labeling, and communication across FOH/BOH.

tag guest peanut allergy in PMS and on the POS chit; use separate fryers for gluten-free orders; update menu icons and allergen matrix quarterly.

Average Check

The average spend per dining customer or cover; calculated as total F&B revenue divided by number of covers.

raise average check by bundling appetizers and drinks; track lunch vs dinner average check by server; menu engineering lifts average check by promoting high-margin items.

Back of House (BOH)

Non-guest-facing operational areas and staff, such as kitchen, stewarding, receiving, and employee areas.

streamline BOH prep with a production schedule; institute BOH-only sanitizer stations for HACCP; BOH staffing model aligns with forecasted covers.

Banquet Event Order (BEO)

The contract/spec sheet detailing event logistics: menus, timeline, room setup, AV, guarantees, and billing; master document for banquet operations.

finalize BEO 7 days out with guaranteed count; add diagram and AV notes to the BEO; reconcile BEO charges to the group master account.

BAR (Best Available Rate)

The unrestricted, publicly bookable rate used as the benchmark in hotel pricing; may vary by date based on demand.

set weekday BAR higher for corporate demand; cap discounts as a percentage of BAR; monitor parity so OTAs don’t undercut BAR.

Beverage Cost Percentage

Cost of beverages sold divided by beverage sales; a control metric to manage pricing, pour sizes, and waste.

target 22% beverage cost through standardized pours; conduct weekly inventory to validate beverage cost; adjust cocktail prices after supplier increases.

Booking Engine

An online reservation interface (often on a hotel or restaurant website) that processes direct bookings and payments, integrated with PMS/POS.

A/B test booking engine layouts to improve conversion; enable upsell add-ons in the booking path; connect booking engine to meta-search for direct traffic.

Breakage

Revenue retained from prepaid items or package components that go unused (e.g., unused F&B credits, spa vouchers, or gift cards).

forecast package breakage to price inclusions profitably; track gift card breakage by cohort; reduce breakage with proactive pre-arrival communications.

CapEx (Capital Expenditure)

Funds invested in long-term assets like renovations, FF&E, and building systems; typically budgeted in multi-year plans.

schedule guestroom soft-goods CapEx every 7 years; replace boilers as part of energy-saving CapEx; use reserve-for-replacement accounts to fund CapEx.

Catering

Food and beverage services for events, on- or off-premise, with menus, staffing, setup, and service standards.

offer tiered wedding catering packages; price catering by per-person plus service charge; coordinate catering timelines with BEOs and kitchen production.

Channel Management

The practice and tools used to distribute rates and inventory across direct and third-party channels while maintaining parity and controls.

close OTAs on sellout dates via channel manager; load corporate negotiated rates to the GDS; monitor channel mix to reduce acquisition costs.

Chargeback

A reversal of a credit card transaction initiated by the cardholder’s bank; requires documentation to dispute.

submit signed folio and ID to fight a no-show chargeback; avoid chargebacks by using 3-D Secure for prepayments; track chargeback win rates monthly.

COGS (Cost of Goods Sold)

Direct costs of items sold, typically food and beverage ingredients; excludes labor and overhead.

calculate weekly COGS to gauge menu profitability; renegotiate supplier pricing to lower COGS; tie COGS to recipe costing for accurate margins.

Competitive Set (Comp Set)

A group of peer hotels used for benchmarking performance (occupancy, ADR, RevPAR) via reports like STR.

update comp set after a new upscale opening; use comp set ADR to guide BAR decisions; analyze comp set RevPAR index trends monthly.

Concierge

Guest service role providing local recommendations, reservations, transportation, and personalized assistance.

arrange last-minute theatre tickets; build a culinary map for a foodie guest; coordinate airport transfer with flight monitoring.

CRM (Customer Relationship Management)

Systems and processes to capture guest data, preferences, and interactions to personalize service and drive repeat business.

trigger pre-arrival emails based on profile tags; segment offers by loyalty tier in the CRM; record pillow preference for future stays.

Deposit Policy

Rules requiring guests to prepay or place deposits (e.g., first night or percentage) by a set date, often linked to cancellation terms.

require a two-night deposit for peak season; offer refundable deposits up to 7 days before arrival; document deposit terms in confirmations.

Direct Booking

A reservation made through owned channels (website, app, phone), avoiding third-party commissions and enabling deeper data capture.

promote member rates to drive direct bookings; use metasearch to funnel to the hotel’s site; measure cost-of-acquisition savings from direct mix.

DMO (Destination Marketing Organization)

A local or regional tourism body that promotes a destination and drives demand to member businesses.

join DMO co-op campaigns during shoulder season; host fam trips coordinated by the DMO; list events on the DMO calendar for visibility.

Dynamic Pricing

Adjusting prices in real time (or near real time) based on demand, inventory, and competitor behavior to maximize revenue.

raise rates for citywide conference dates; apply surge pricing to late-night delivery; automate yield rules in the RMS.

EBITDA

Earnings before interest, taxes, depreciation, and amortization; a proxy for operating cash flow and valuation.

benchmark EBITDA margins to franchise averages; evaluate management fees’ impact on EBITDA; use EBITDA multiples in asset acquisition.

European Plan (EP)

Room-only rate plan with no meals included; contrasts with MAP (breakfast and dinner) and AI (all inclusive).

sell EP midweek to attract rate-sensitive travelers; bundle breakfast add-on to EP in booking engine; compare EP vs HB conversion rates.

Executive Chef

Senior culinary leader responsible for menu development, food safety, cost control, staffing, and kitchen operations.

redesign menu for 28% food cost target; train team on new HACCP SOPs; collaborate with sales on banquet menus.

FIFO (First In, First Out)

Inventory rotation method ensuring older stock is used before newer stock to reduce spoilage and maintain quality.

label deliveries with dates for FIFO; set walk-in shelves to enforce FIFO flow; audit stations for FIFO compliance.

Food and Beverage (F&B)

The culinary and beverage operations within a hospitality business, covering restaurants, bars, banquets, and room service.

set F&B minimums for ballroom rentals; forecast F&B revenue by outlet; align F&B labor with covers and catering pace.

Forecasting

Predicting future demand, revenue, and costs using historical data, pace, events, and market intelligence.

build a 90-day room night and ADR forecast; use covers forecast for prep and purchasing; forecast labor hours using productivity standards.

Franchise Fee

Payments to a brand/franchisor, including royalties, marketing assessments, and system fees, typically as a percentage of revenue.

model franchise fees in the P&L for a conversion; compare royalty rates across brands; audit fee statements for accuracy.

Front of House (FOH)

Guest-facing operations and staff, such as front desk, hosts, servers, bartenders, and concierge.

implement FOH service recovery guidelines; FOH pre-shift covers specials and 86’d items; cross-train FOH for peak periods.

GDS (Global Distribution System)

Network (e.g., Amadeus, Sabre, Travelport) used by travel agents to book air, hotel, and car; hotels load rates/inventory via CRS.

load corporate negotiated rates into the GDS; run GDS productivity reports by agency; promote with a GDS advertising campaign.

GOPPAR (Gross Operating Profit Per Available Room)

Gross operating profit divided by available rooms; profitability metric that accounts for both revenue and operating costs.

improve GOPPAR by optimizing labor and energy; compare GOPPAR across properties to prioritize CapEx; use GOPPAR instead of RevPAR for owner reporting.

Guaranteed Reservation

A reservation secured with payment or guarantee allowing late arrival, with no-show charges per policy.

require a credit card for guaranteed late arrivals; apply one-night no-show fee per guarantee terms; flag guaranteed bookings in PMS for overbooking protection.

Guest Satisfaction Score (GSS)

A post-experience metric from surveys or reviews (often including NPS) indicating how happy guests are with the service.

tie bonuses to GSS targets; analyze GSS by touchpoint (check-in, breakfast); trigger service recovery emails for low GSS responses.

Group Business

Bookings associated with meetings, events, or room blocks negotiated with group contracts and special terms.

manage group pickup and release dates; set group rate differentials to BAR; enforce attrition and cancellation clauses.

HACCP (Hazard Analysis and Critical Control Points)

A systematic approach to food safety that identifies hazards and implements controls at critical points.

maintain temperature logs for CCPs; calibrate thermometers weekly; train all cooks on HACCP flow diagrams.

Half Board (HB)

Rate plan that includes breakfast plus one main meal (usually dinner), excluding beverages unless stated.

sell HB for resort stays to lift F&B capture; coordinate HB seatings with kitchen capacity; differentiate HB vs MAP in confirmations.

Heads in Beds

Industry shorthand emphasizing occupancy as a primary goal to drive room revenue.

launch a flash sale to put heads in beds midweek; partner with the DMO to fill need periods; prioritize volume segments to get heads in beds.

House Account

An internal account used to post charges not tied to a specific guest folio, often for comps, adjustments, or in-house events.

post media dinner to the PR house account; reconcile house account activity at month-end; restrict house account access via approvals.

Housekeeping SOPs

Standard procedures for cleaning, safety, room inspections, linen handling, and productivity standards.

implement 30-minute stayover clean SOP; use blacklight checks in inspection SOPs; standardize cart setup to SOP.

IATA Number

Unique identifier for a travel agency used to validate eligibility for commissions and access to agency rates.

load agency IATA to pay commissions; verify IATA on GDS bookings; report production by IATA for top agencies.

Incidentals

Additional guest charges beyond base rate (e.g., minibar, parking, spa); often secured by a credit card authorization at check-in.

set incidental hold at $75 per night; capture incidentals via pre-authorization; audit incidentals for charge posting accuracy.

In-Room Dining (IRD)

Room-delivered food and beverage service, often with specific menus, tray charges, and service windows.

add a late-night IRD menu to capture demand; implement IRD tray pickup SOPs; track IRD average check vs restaurant.

Inventory Turnover

How many times inventory is sold and replaced over a period; calculated as COGS divided by average inventory.

improve turnover by smaller, more frequent orders; reduce slow-moving SKUs; monitor produce turnover to cut waste.

Just-in-Time (JIT) Inventory

An inventory strategy that minimizes on-hand stock by timing deliveries close to production or service needs.

schedule daily bread deliveries for JIT; use PAR levels to trigger JIT orders; coordinate JIT with suppliers to avoid stockouts.

Key Control

Policies and systems to manage physical and digital keys, including issuance, tracking, and return to protect assets and safety.

log master key sign-outs; audit electronic lock access reports; enforce lost key incident procedures.

Kitchen Display System (KDS)

Digital screens that replace paper tickets, routing orders to stations, tracking prep times, and improving expo coordination.

color-code KDS by course; use KDS analytics to balance station loads; integrate KDS with POS for modifiers accuracy.

KPI (Key Performance Indicator)

Quantifiable metrics that reflect performance against goals, such as occupancy, ADR, RevPAR, labor cost %, and GSS.

review KPIs in weekly revenue meetings; tie bonuses to KPI targets; visualize KPIs on a dashboard by department.

LOS (Length of Stay)

Number of nights a guest stays; used for forecasting, pricing, and setting stay restrictions.

set MinLOS over high-demand weekends; analyze average LOS by segment; offer stay-3-pay-2 to increase LOS in shoulder periods.