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Posted On Wednesday, November 29, 2017

Hotel Terminology

Franchisor: Those who manage the brand and sell the right to use the brand name

Franchisee: Those who own the hotel and buy the right to use the brand name for a fixed period of time and at an agreed-upon price.

Market share: The percentage of the total market captured by a property

Management Company: An organization that operates a hotel(s) for a fee. Sometimes called a “Contract Company”

Line Departments: Hotel divisions that are in the “chain of command” and are directly responsible for revenues (such as front office and food/beverage) or for property operations (such as housekeeping and maintenance and engineering)

Staff Departments: Hotel divisions that provide technical, supportive assistance to line departments, for example the human resource department.

Revenue Center: A hotel department that generates revenue. Two examples are the front office and the food and beverage departments

Cost Center: A hotel department that incurs costs in support of a revenue center. Two examples are the housekeeping and maintenance department.

Moments of Truth: Any (and every) time that a guest has an opportunity to form an impression about the hotel. Moments of truth can be positive or negative.

Downsizing: Reducing the number of employees and/or labor hours for cost-containment purposes.

Overbuilt: The condition that exists when there are too many hotel guest rooms available for the number of travelers wanting to rent them.

Market Segmentation: Efforts to focus on a highly defined (smaller) group of travelers, for example, “executives desiring long-term stays’ rather than “business travelers”

Amenities: Hotel products and services designed to attract guests.
Data Mining: Using technology to analyze guest related data to make better marketing decisions.

Yield Management: Demand forecasting systems designed to maximize revenue by holding rates during times of high guest room demand and by decreasing room rates during times of lower guest room demand.

Globalization: The condition in which countries and communities within them throughout the world are becoming increasingly interrelated.

Career Ladder: A plan that projects successively more responsible professional positions within an organization/industry.

Mentor: A senior employee of a hotel who provides advice and counsel to less experienced staff members about matters relating to the job, organization, and profession.

General Manager: The traditional title used to identify the individual at a hotel property who is responsible for final decision-making regarding property-specific operating policies and procedures. Also the leader of the hotel’s management team.

FF&E: The term used to refer to the furniture, fixtures, and equipment used by a hotel to service its guests.

Quality Inspection Scores: Sometimes called quality assurance (QA) scores, these score are the result of annual (or more frequent) inspections conducted by a franchisee company to ensure that franchisor-mandated standards are being met by the franchisee.

Executive Operating Committee (EOC): Those members of the hotel’s management team (generally department heads) responsible for departmental leadership and overall property administration.

Management: The process of planning, organizing, staffing, directing, controlling, and evaluating human financial, and physical resources for the purpose of achieving organizational goals.

Free-to-Guests: A service provided at no additional charge to the hotel guests.

Line-Level: Those employees whose jobs are considered entry level or nonsupervisory. These are typically positions where the employee is paid an hourly compensation.

Comp: Short for “complimentary” or “no-charge” for products or services.

Human Relations: Skills needed to understand effectively interact with other people.

Empowerment: The act of granting authority to employees to make key decisions within the employees’ areas of responsibility.

Re-engineering: Reorganizing hotel departments or work sections within departments.

Strategy: A method or a plan developed to achieve a long-range goal.

Tactic: An action or method used to attain a short-term objective.

ROI: Short for “return on investment’. The percentage return of achieved on the money invested in a hotel property

Programming Decisions: Routine or repetitive decisions that can be made after considering policies, procedures, or rules.

Non programmed decisions: Decisions that occur infrequently and require creative and unique decision-making abilities

Ethics: Standards used to judge the “right” and “wrong” of one’s actions when dealing with others

Unity of command: Each employee should report to/be accountable to only one boss for a specific activity.

Span of control: The number of people one supervisor can effectively manage.

Authority: The power to tell others to do or not to do something in efforts to attain the hotel’s objectives.

Delegation: The process of assigning authority to others to enable subordinates to do work that a manager at a higher organizational level would otherwise do.

Accountability: An obligation created when a person is delegated duties/responsibilities from higher levels of management.

Coaching: A process, whose goal is helping staff members, and the hotel team, reach their highest possible levels of performance.

Discipline: Activities designed to reinforce desired performance or to correct undesired performance.

Progressive Discipline: A process of negative discipline in which repeated infractions result in an increasingly severe penalty.

Team: A group of individuals who place the goals of the group above their own.

H.R.: Short for human resources

Job Description: A list of tasks that an employee working in a specific position must be able to effectively perform

Job Specification: A list of the personal qualities judged necessary for successful performance of the tasks required by the job description.

At-Will Employment: The employment relationship that exists when employers can hire any employee as they choose and dismiss that employee with or without cause at any time.

Employment Agreement: A document specifying the terms of the work relationship between the employer and the employee that indicates the rights and obligations of both parties.

Zero tolerance: The total absence of behavior that is objectionable from the perspectives of discrimination or harassment.

Minimum Wage: the lowest amount of compensation that an employer may pay to an employee.

Overtime: The number of hours of work after which an employee must receive a premium pay rate.

Unemployment Rate: The number usually expressed as a percentage, of employable persons who are out work and looking for jobs.

Internal Recruiting: Tactics to identify and attract currently employed staff members for job vacancies that represent promotions or lateral transfers to similar positions.

External Recruiting: Tactics designed to attract persons who are not current hotel employees for vacant positions.

Selection: The process of evaluating job applicants to determine those more qualified for vacant positions.

Orientation: The process of providing basic information about the hotel which must be known by all of its employees

Employee Handbook: Written policies and procedures related to employment at a hotel.

Up-selling: Tactics used to increase the hotel’s average daily rate (ADR) by encouraging guest to rent higher-priced rooms with better or more amenities.

Role-play: A training activity that allows trainees to practice a skill by interacting with each other in simulated roles.

Compensation: All financial and nonfinancial rewards given to management and nonmanagement employees in return for the work they do for the hotel.

Salary: Pay calculated at a weekly, monthly, or annual rate rather than at an hourly rate.

Wage: Pay calculated on an hourly basis.

Benefits: Indirect financial compensation consisting of employer-provided rewards and services other than wages or salaries.

Controller: The individual responsible for recording, classifying, and summarizing the hotel’s business transactions.

Audit: An independent verification of financial records.

Guest Service Agent: An employee working in the front desk area of ht hotel. Also referred to by some in the industry as a “desk clerk”

Occupancy Rate: The ration of guest rooms sold to guest rooms available for sale in a given period of time.
Formula for Occupancy Rate:

Total rooms sold / Total Rooms available = Occupancy Percent

ADR: Short for “average daily rate,” the average selling of all guest rooms for a given time period.

Formula for ADR:

Total room revenue/ Total no. of rooms sold = ADR

RevPar: Short for “revenue per available room.” The average sales revenue generated by each guest room during a given time period.
Formula for RevPar

Occupancy % (x) ADR = RevPAr

F&B: Shortened term for food and beverage

Capital Expenditure: The purchase of equipment, land, building, or other fixed assets necessary for the operation of the hotel.

Seasonal Hotel: A hotel whose revenue and expenditure vary greatly depending on the time of the year the hotel is operating.

P&L: Short for the profit and loss statement

Fixed Charges: Those expenses incurred in the purchase and occupation of the hotel itself. These include rent. Property taxes, insurance, interest, and depreciation and amortization.

Depreciation: The part of a fixed asset’s cost that is recognized as an expense in each accounting period because it is assumed to have been “used up” during that period.

PMS: Short for “property management system”. This term refers to the computerized system used by the hotel to manage its rooms revenue, room rates, room assignments, and reservations, as well as other selected guest service functions.

No-show: A guest who makes a confirmed room reservation but fails to cancel the reservation or arrive at the hotel on the date of the confirmed reservation.

Allowances and Adjustments: Reductions in sales revenue credited to guests because of errors in property recording sales or to appease a guest for property shortcomings.

House count: An estimate of the number of guests staying in a hotel on a given day.

Short: A situation in which cashier have less money in their cash drawer than the official sales records indicate.

Over: A situation in which the cashier have more money in their cash drawer than the official sales records indicate.

Direct Bill: An arrangement whereby a guest is allowed to purchase hotel services and products on credit terms.

Accounts Receivable: Money owed to the hotel because of sales made on credit.

Accounts Payable: The sum total of all invoices owed by the hotel to its vendors for credit purchases made by the hotel.

Coding: The process of assigning incurred costs to predetermined cost centers or categories.

Auditor: The individual who conducts an independent verification of financial records.

Collusion: Secret cooperation between two or more hotel employees for the purpose of committing fraud.

FOM: Short for Front Office Manager

Concierge: The individual(s) within a full-service hotel responsible for providing guests with detailed information regarding local dining and attractions.

Bell Staff: Those uniformed attendants responsible for guest services, including luggage handling, valet parking, airport transportation, and related guest services.

Sell-out: A situation in which all rooms are sold or oversold.

Rack rate: The price at which a hotel sells its rooms when no discounts of any kind are offered to the guest.

CTA; “Closed to Arrival.” In this situation, the hotel declines reservations for guests attempting to arrive on this specific date.

MLOS: “Minimum Length of Stay.” In this situation, the hotel declines reservations for guests seeking to stay fewer days than the minimum established by the hotel.

Overbooking: A situation in which the hotel has more guest reservations for rooms than it has rooms available to lodge those guests.

Walked: A situation in which a guest with a reservation is relocated from the reserved hotel to another because no room was available at the reserved hotel.

Folio: The detailed list of a hotel guest’s room charges, as well as other charges authorized by the guest or legally imposed by the hotel.

Room Type: The term used to designate specific configurations of guest rooms.

Transient sales: Rooms and services sold primarily through the efforts of the front office and its staff.

Group sales: Rooms and services sold primarily through the efforts of the hotel’s sales and marketing department, and given to the front office for recording and servicing.

Confirmation number: A series of number and/or letters that serve to identify a specific hotel reservation number.

Cancellation number: A series of numbers and/or letters that serve to identify the cancellation of a specific hotel reservation.

Blackout Dates: A specific days in which the hotel is “sold-out” and/or is not accepting normal reservations.

Walk-in: A guest seeking a room who arrives at the hotel without an advance reservation.

Curb Appeal: The term used to indicate the initial visual impression the hotel’s parking areas, grounds, and external building aesthetics create for an arriving guest.

Registration card: A document that provides details such as guest’s name, arrival date, rate to be paid, departure date, and other information related to the guest’s stay.

Valet: Originally term used to identify an individual who cared for the clothes of wealthy travelers; its most common usage now is in reference to those individuals responsible for parking guest vehicles.

Authorize: To validate

Post: To enter a guest’s charges into the PMS, thus creating a permanent record of the sale.

Bucket check: A procedure used to verify, for each guest, the accuracy of the guest’s registration information.

Night auditor: The individual who performs the daily review of guest transactions recorded by the front office.

Night audit: The process of reviewing for accuracy and completeness the accounting transactions from one day to conclude or “close” that day’s sales information in preparation for posting the transactions of the next day.

Interfaced: The term used to described the process in which one data generating system shares its data electronically with another system.

Call Accounting: The system within the hotel used to document and charge guests for their used of the telephone.

Recodable Locking System: A hotel guest room locking system designed such that when a guest inserts their “key” (typically an electromagnetic card) into the guest room lock for the first time, the lock is immediately recorded, canceling entry authorization for the previous guest’s key and thus enhancing guest safety.

PBX: The system within the hotel used to process incoming, internal, and outgoing, telephone calls.

House phone: A publicly located telephone within the hotel used to call the front desk, or, in some cases, the front desk and guest rooms.

Point of Sale (POS): A location, including the front desk, at which hotel goods and services are purchased. In many hotels, the POS is interfaced with the PMS.

Minibars: Small, in-room refrigerated or unrefrigerated cabinet used to store beverages, snacks, and other items the hotel wishes to offer for sale to guest.

Back Office Systems: The accounting system used by the controller to prepare the hotel’s financial documents such as the balance sheet, income statement, and so on.

Public Space: Those areas within the hotel that can be freely accessed by guests and visitors.

House Person: The individual responsible for the cleaning of public spaces. Also sometimes referred to as PA (public area cleaner) or porter.

Executive Housekeeper: The individual responsible for the management and operation of the housekeeping department.

Room Status: The up-to-date (actual) condition (occupied, vacant, dirty, etc.) of the hotel’s individual guest rooms.

Stay-over: A guest that is not scheduled to check out of the hotel on the day his or her room status is assessed. That is, the guest will be staying at least one more day.

OPL: Short for “On Premise Laundry”

Inspector (Inspectress): The individual(s) responsible for physically checking the room status of guest rooms, as well as other tasks as assigned by the executive housekeeper.

Room Attendants: The individual(s) responsible for cleaning guest rooms. Sometimes referred to as housekeeper.

Room Attendant Cart: A wheeled cart that contains all of the items needed to properly and safely clean and restock a guest room.

Blood-Borne Pathogen: Any microorganism or virus, carried by blood, that can cause a disease.

Deep Cleaning: The intensive cleaning of a guest room, typically including the thorough cleaning of items such as drapes, lamp shades, carpets, furniture, walls and the like.

Minutes per Room: The average number of minutes required to clean a guest room. Determined by the following computation:

Total number of minutes worked by rooms attendants / total number of guest rooms cleaned = minutes per room

Product Usage Report: A report detailing the amount of inventoried item used by a hotel in a specified time period.

Cost per Occupied Room: Total costs incurred for an item or area, divided by the number of rooms occupied in the hotel for the time period examined.

Biohazard Waste Bag: A specially marked plastic bag used in hotel. Laundry items that are blood or bodily fluid stained and thus need special handling in the OPL are placed into these bags for transporting to the OPL.

Agitation: Movement of the washing machine resulting in friction as fabrics rub against each other.

Laundry Par Levels: The amount of laundry in use, in process, and in storage.

Function Room: Public space such as meeting rooms, conference areas, and ballrooms that is available in the hotel for banquet, meeting, or other group rental purposes.

Resources: Something of value to the organization.

Service: The process of moving food and beverage products from production personnel (cooks and bartenders) to food and beverage servers who will serve them to guests.

Service: The process of moving food and beverage products from service staff to the guests.

Audiovisual (AV) Equipment: Those items including DVD players, laptops, LCD projectors, microphones, sound systems, flip charts, overhead projectors, slide projectors, TV’s, and VCR’s that are used to communicate information to meeting attendees during their meetings.

Expenses: The amount of money spent to generate revenues.

Service Chargers: A mandatory amount added to a guest’s bill for services performed by a by a hotel staff members(s).

Hospitality Suites: A guest room usually rented during conventions/conferences to provide complimentary food and/or beverages to invited guests.

Hosted Events: Functions served by a hotel, which are complimentary to invited guests because costs are borne by the event’s sponsor.

Cross selling: Messages designed to advertise the availability of other hotel services. For example, a dinner menu may provide information about the hotel’s Sunday brunch.

Guest Check Average; The average amount spent by a guest in a room service or dining room order. The average check average typically includes the food and alcoholic beverage sales.

Guest check average = total revenue / total number of guest served

Point-of-Sale Terminal: A computerized device that contains its own input and output components, and, perhaps, some memory capacity but without a central processing unit.

Remote printer: A unit in the kitchen preparation area that receives and print orders entered through a point-of-sale terminal located in the dining room, room service order taker’s work station, or other area.

Banquet: A food and/or beverage event held in a function room.

Catering: The process of selling and carrying out the details of a banquet event.

Word-of-Mouth Advertising; Informal conversations between persons as they “discuss” their positive or negative experiences at a hotel.

Contribution margin: The amount of that remains after the product (food) cost of a menu item is subtracted from its selling price.

Guarantee: A contractual agreement about the number of meals to be provided at a banquet event. Typically, a guarantee must be made several days in advance of the event.

Hosted Bar: A beverage service alternative in which the host of a function pays for beverages during all or part of the banquet event; also called an “open” bar

Cash bar: A beverage service alternative where guests desiring beverages during a banquet function pay for them personally.

Banquet Event Order (BEO): A form used by the sales, catering, and food production areas to detail all requirements for a banquet.

Head Table: Special seating at a banquet reserved for guests of honor.

Call Brand Beverages: High-priced and higher-quality alcoholic beverages that are sold by name rather than sold by type of liquor only.

House Brand Beverages: Alcoholic beverages that are sold by type rather than by name and that are served when a call brand beverage is not requested.

Corkage Fee: A charge levied by a hotel when a guest brings a bottle to the hotel for consumption at a banquet function or in the hotel’s dining room.

Third-Party Liability: A legal concept that hold the second party (the hotel serving alcohol) responsible for acts caused by the first party (the drinker), if the drinker subsequently causes harm to a third party (the victim of the accident0

Safety: Protection of an individual’s physical well-being and health.

Security: Protection of an individual or business’s property or assets.

Liable: Legally bound to compensate for loss or injury.

Damages: The actual amount of losses or costs incurred due to the wrongful act of a liable party.

Internal Alarm: A warning system that notifies an area within the hotel if the alarm is activated.

Contact Alarm: A warning system that notifies an external entity such as the fire or police department if the alarm is activated.

Closed-Circuit Television (CCTV): A camera and monitor system that displays in real time, the activity within a camera’s filed of vision. A CCTV consisting of several cameras and screens showing the camera’s field of vision may be monitored in a single hotel location.

Emergency Plan: A document describing a hotel’s predetermined, intended response to an safety/security threat encountered by the hotel.

MOD: Manager on Duty

Incident Report: A document prepared to record the details of an accident, injury, or disturbance, and then hotel’s response to it.

Embezzlement: The theft of a company’s financial assets by an employee.

Discrepancy Report: A daily comparison between the status of rooms as listed by the PMS at the front office, and the status of rooms as listed by the housekeeping department.

Booking: Hotel jargon for making a confirmed sale.

Group sale: A large sale of the hotel’s rooms or services. The sales and marketing not the front desk, books sales of this type.

Site tour: A physical trip around the hotel usually hosted by a sales and marketing staff member, for the purpose of introducing potential clients and other interested parties to the hotel’s features.

Travel Agent: A hospitality professional that assists clients in planning travel.

Drop in: A potential buyer (guest) who arrives at the hotel without an appointment.

Package: A group of hospitality services (such as hotel rooms, meals and airfare) sold for one price.

Inclusive: A single price that includes all charges.

Attrition: The difference between the original request and the actual purchases of a group.

Block: Rooms reserved exclusively for members of a specific group.

Marketing Plan: A calendar of specific activities designed to meet the hotel’s sales goals.

Room Mix: the ratio of room type contained in a hotel.

Maintenance: The activities required to keep a building and its contents in good repair.

HVAC: Shortened term for “heating, ventilating, and Airconditioning.

Work Order: A form used t initiate and document a request for maintenance.

Preventive Maintenance Program: A specific inspection and activities schedule designed to minimize maintenance-related costs and to prolong the life of equipment by preventing small problems before they become larger ones.

PM Checklist: A tool developed to list all the critical areas that should be inspected during a PM review of a room, area or piece of equipment.

Franchise: An agreement whereby one party (the brand) allows another (the hotel owners) to use its logo, name, systems, and resources in exchange for a fee.

Franchise Agreement: The legal contract between the hotel owners (franchisee) and the brand managers (the franchisor), which describes the duties and responsibilities of each in the franchisee relationship.

Flag: A term used to refer to the specific brand with which a hotel may affiliate.

System-Wide: The term used to describe all hotels within a given brand.

Grand Opening: An event at a hotel marks the “official” opening of that hotel.

Market Value: The estimated worth of a hotel.

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