GLOSSARY

Over +300 terms and definitions...

Hotel Revenue Management, Asset Management, Finance and Sales & Digital Marketing, 

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Ancillary Contribution

Displacement and Negotiated Pricing

A contribution other than from the sale of the room itself.

Break-even rate

Displacement and Negotiated Pricing

In the hotel industry, the room rate at which room revenue equals the cost of selling the room.

Displacement

Displacement and Negotiated Pricing

In revenue management of groups, a number of rooms, calculated as group demand
plus regular demand minus capacity.

Group forecasting

Displacement and Negotiated Pricing

The use of booking data by the hotel to estimate how many group block rooms will be
booked, and when.

Group segment mix

Displacement and Negotiated Pricing

The proportions of the different group segments that comprise the total group business
for the hotel. In general, these segments receive different rates.

Inventory Wash (Groups)

Displacement and Negotiated Pricing

Related to group utilization or materialization, the fraction of the group block that the
group does not utilize

Last room availability clause

Displacement and Negotiated Pricing

A contract clause indicating that the contracted rate is available as long as rooms of any type are available.

Logistic regression

Displacement and Negotiated Pricing

A statistical technique that measures the relationship between two variables using an Scurve.

Multinomial logistic regression

Displacement and Negotiated Pricing

A form of regression in which the outcome can have three or more possible values.

Multiplicative forecast

Displacement and Negotiated Pricing

A forecast that use percentages based on historic group behavior to determine current demand.

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