How much do you know about the 38 connection codes of hotel people?
As the saying goes, every industry has its own specific terminology, and the hotel industry is no exception.
As an excellent hotel marketer, not only must master the basic terms of the hotel, but also know the terms of revenue management and marketing well, so as to be “like a duck to water” in work reporting, customer communication, and colleague communication.
Today, we have compiled 38 commonly used words in hotel marketing, aiming to help new marketers lay a solid foundation and establish a basic understanding of the hotel industry. If you are an experienced hotel person, you can also refer to this article to check the gaps and fill the gaps!
01
hotel basic noun
As a hotel marketer, whether at work or in meetings, these industry terms are used:
Adjacent rooms: two rooms are connected together;
Connecting room: refers to a room connected by a door between two rooms;
Pre-announcement lock-up: In order to keep a certain room, the room is locked up on a certain day in advance, so that it is displayed to be occupied during this time period, so as to control the pre-sale of the room.
Pre-departure without leaving the room: a room should be vacant, but after the expected departure time, the guest still does not check out.
Deposit: The amount paid by the guest to the hotel in advance to ensure a room.
Deposit: The front desk requires guests to deposit a certain fee at the hotel, such as cash guarantee, credit card pre-authorization, etc., to restrain the guest’s stay in the hotel from causing damage to their own interests. If damage is caused, the fee can also be used to pay or compensate separately.
Account evasion: The guest leaves the hotel without paying the bill.
Guaranteed reservation: The guest provides cash, credit card, company, travel agency and other guarantees when making a reservation. If the guest does not actually check in, the hotel has the right to charge a certain fee to the guarantor or institution.
Welcome gift: The hotel provides free gifts to the hotel guests, such as fruits, flowers, drinks, etc.
Extra bed: There is usually a charge for adding a bed in the room.
Overtime check-out: Check-out after the specified check-out time, usually the hotel stipulates that the check-out time is 12:00 noon, and overtime check-out will generally charge additional rent unless approved.
Waiting room reservation: When the hotel room is full and cannot accept more orders, in order to protect the hotel’s revenue and meet the needs of customers, new reservations will be listed on the waiting list. Once there is a chance, the waiting list will be arranged.
Expense reduction: If the guest is not satisfied with the service, the hotel will give appropriate discount or even free.
Hotel room for self-use: generally not rented out, mainly used for short-term or long-term use of guest rooms by the hotel’s senior management staff, short-term use as a warehouse, or as an office.
Package price: The price including room fee, meal fee or other types of expenses.
Rack price/listing price: The hotel’s public rack price, that is, the original price on the price list.
Long-term private rooms: The guests live in private rooms for a long time.
Actual average room price: the ratio of total room revenue to the actual number of rooms rented, the formula is: actual average room price = (total room revenue/number of rooms rented) * 100%;
Company negotiated price: There is an agreement with the hotel that promises to provide the specific price of the room to the company’s guests.
Receipt of account: The guest does not pay directly after experiencing various facilities and services of the hotel, but settles together after billing;
Commission: Guests book rooms through travel agencies and other platforms, and the hotel needs to pay a certain percentage of the room fee as a reward to the platform.
Reservation number: The reservation number refers to the identification code in the hotel front desk system. The reservation number can be used to accurately query the order records in the system.
Upgrade: The hotel adjusts the room type originally booked by the guest to a higher-level room type by charging or free.
Empty room: The room is empty, and there are generally two room states: the empty room is not cleaned, and the empty room is cleaned.
Bad room: refers to a room that cannot be sold because it needs to be renovated or renovated.
02
revenue management noun
What are the specific meanings of the three major indicators (ADR, OCC, RevPAR) for the performance level of the hotel industry? Let’s find out together!
- ADR (Average Daily Rate) - Average room rate sold
Average Room Rate Sold (ADR) is a widely used measure in the hospitality industry and refers to the average revenue earned from rooms sold in a given day, calculated as the total room revenue for that day divided by the actual number of rooms sold. ADR is one of the key performance indicators (KPIs) in the hotel industry.
- Occupancy (Occ) – Occupancy rate
The occupancy rate refers to the ratio of the number of rooms actually sold to the number of available rooms in a certain period. It is one of the hotel’s KPIs. It is calculated as the number of rooms actually sold/number of available rooms. For example, a hotel has 100 available rooms. If 100 rooms are actually sold on that day, the occupancy rate is 100%.
- RevPAR (Revenue Per Available Room) – Income per available room
Revenue per available room (RevPAR) is an indicator used by the hotel industry to measure hotel performance, which can provide a more comprehensive understanding of the hotel’s operating conditions. RevPAR is calculated by multiplying the hotel’s average room rate (ADR) by the occupancy rate.
03
marketing term
Marketing has a rich connotation and a huge system. Many newcomers in the industry and even senior marketers often have little knowledge of many professional terms. Let’s take a look at these classic theories and basic terms of marketing!
- Hotel Marketing:
A series of marketing activities such as marketing strategy formulation, pricing, promotion, and service provision by hotels in order to attract target customers, the ultimate goal is to make profits for the hotel.
- 4P Marketing Theory
Born in the United States in the 1960s, it is a classic marketing theory that covers four basic marketing strategies: Product, Price, Place and Promotion.
① Product: the characteristics of the hotel’s basic products and services;
② Price: The hotel’s price strategy, including hotel room rates and catering prices.
③ Location: “Father of the Hotel” - Ellsworth. Statler said “For any hotel, the three key factors to success are location, location, location.” The choice of hotel location has a strong correlation with passenger flow and business performance.
④ Promotion: including brand promotion (advertising), public relations, sales, personnel promotion, etc.;
- 4C Marketing Theory
With the increasingly fierce market competition, the 4C marketing theory proposed by the American scholar Robert Lauterang gradually replaced the 4P theory. It is guided by consumer demand and combines four new marketing fundamentals: customer, cost, convenience, and communication.
Compared with the traditional 4P, the 4C marketing theory will not only focus on marketing and product sales, but also the whole process of communicating with target customers, so it can provide more corporate marketing strategies based on the perspective of consumer behavior.
Market analysis: analysis of various factors, dynamics and trends of changes in market supply and demand.
Market research: Use scientific methods to systematically collect and organize market information and analyze and evaluate the process of target market, so as to provide reference for the company’s product upgrade, user experience improvement, and marketing policy formulation.
Market Segmentation
Market segmentation is the process of dividing the target market into sub-categories. Companies divide customers into several customer groups according to different characteristics (such as demographic characteristics, interests, needs or locations), and each customer group constitutes a submarket.
Market segmentation can help companies deeply understand the needs of users in different market segments, and formulate differentiated product and service strategies to meet the individual needs of users.
- Positioning:
The marketing theory founded by the famous American marketing master Ai Rees refers to the establishment of a unique brand image in the minds of consumers, and enterprises formulate relevant brand strategies.
- Promotion:
Promotion is the process of persuading potential customers to buy a product and is generally a short-term strategy to increase sales—rarely used as a marketing strategy to build customer loyalty. Such as hotel seasonal promotions, theme promotions, etc.
- Distribution:
In Western economics, the meaning of distribution is the establishment of sales channels. According to the definition of the famous marketing guru Philip Kotler, distribution channels or marketing channels refer to certain commodities. In the process of transferring (Commodity) or service (Service) from producer (Producer) to consumer (Consumer), obtain the ownership of such goods and services, and help all enterprises and individuals who transfer ownership.