AHLEI CHA flashcards
AHLEI CHA · Build recall with a focused review session.
31 cards. Read the term and the definition here. The deck at the top of this page is optional.
- RevPAR
- Revenue per available room, equal to ADR times occupancy percentage, or room revenue divided by total available rooms. It combines rate and volume into a single yield metric.
- GOPPAR
- Gross operating profit per available room; GOP divided by available rooms. It is a strong benchmark because it reflects both revenue generation and cost control across properties.
- TRevPAR
- Total revenue per available room, including rooms, food and beverage, and other revenue, divided by available rooms. Used when non-rooms revenue is a meaningful share of the business.
- Flow-through
- The percentage of incremental revenue that converts to gross operating profit, calculated as change in GOP divided by change in revenue. Higher flow-through indicates tighter cost control.
- Break-even occupancy
- The occupancy level at which total revenue equals total costs, computed as fixed costs divided by the difference between ADR and variable cost per room.
- RevPAR index
- Property RevPAR divided by competitive set RevPAR, multiplied by 100. A value above 100 means the property is capturing more than its fair share.
- Contribution margin
- Segment revenue minus its avoidable or variable costs. Ranking business by contribution rather than by ADR shows which segments actually add profit to the bottom line.
- Current ratio
- Current assets divided by current liabilities; a liquidity measure of the ability to meet short-term obligations. A ratio near or above 1.0 is generally considered adequate.
- Budget variance
- Actual results minus budgeted amounts. A positive variance is favorable for revenue lines but unfavorable for expense lines, so direction must be interpreted by line type.
- USALI
- Uniform System of Accounts for the Lodging Industry, the standard chart of accounts that organizes hotel revenue by department and separates undistributed expenses for comparability.
- Night audit
- The overnight process that posts room and tax, reconciles city ledger and credit card transactions, rolls the business date, and produces the daily manager's report.
- Rate fence
- A restriction such as advance purchase, nonrefundable terms, or length-of-stay requirement that separates price-sensitive demand from price-insensitive demand without lowering the published rate.
- Displacement analysis
- Comparing the total revenue a group would bring against the transient RevPAR it would displace. Group business is accepted only when its net value exceeds the displaced business.
- Hurdle rate
- The minimum acceptable rate per room for a given date, based on demand and cost. Business priced below the hurdle should be declined when demand is strong.
- Situational leadership
- A model that matches leader style, from directing to delegating, to the follower's readiness for a specific task rather than to the person's overall ability.
- Transformational leadership
- A leadership approach built on idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration, aimed at raising follower commitment beyond transactional exchange.
- Transactional leadership
- A leadership approach relying on contingent rewards and management-by-exception, effective for stable, routine operations where clear standards and accountability matter most.
- Servant leadership
- A leadership philosophy in which the leader's primary role is removing barriers and supporting frontline staff, who in turn deliver service to guests.
- Tuckman stages
- The team development sequence of forming, storming, norming, performing, and adjourning. Conflict peaks in storming and must be surfaced rather than suppressed.
- Path-goal theory
- A contingency theory in which leaders use directive, supportive, participative, or achievement-oriented behaviors to clear the path to goals, chosen by task and follower characteristics.
- Delegation accountability rule
- Authority may be delegated to staff, but accountability for outcomes remains with the manager who assigned the task.
- Herzberg two-factor theory
- Hygiene factors such as pay and working conditions prevent dissatisfaction, while motivators such as recognition, achievement, and growth drive engagement. Both must be managed separately.
- Fiedler contingency model
- A model stating that leader effectiveness depends on fit between leader style and situational favorableness, determined by leader-member relations, task structure, and position power.
- Housekeeping minutes per room
- The standard labor productivity measure for room attendants, typically ranging from 25 to 45 minutes for a standard room, used to schedule staffing against occupancy forecasts.
- Overbooking allowance
- The planned number of reservations above capacity, set to offset expected no-shows and early departures. It must be balanced against walk and relocation costs.
- Food cost percentage
- Cost of food sold divided by food revenue, where cost of food sold equals beginning inventory plus purchases minus ending inventory.
- Preventive maintenance schedule
- A calendar of recurring asset servicing, such as monthly PTAC filter changes and quarterly elevator service, that reduces emergency repairs and extends equipment life.
- Service recovery
- The process of resolving guest complaints quickly, empowering frontline staff within defined limits, and logging incidents to identify and fix recurring operational defects.
- City ledger
- The accounts receivable record for non-guest and direct-bill accounts. It is reconciled nightly during the audit and monitored through aging reports.
- Forecast-driven staffing
- Scheduling labor from a rolling occupancy and revenue forecast by segment rather than from historical averages, aligning payroll with expected demand.
- OTA net RevPAR
- RevPAR calculated after deducting channel commissions, typically 15 to 25 percent for online travel agencies. It reveals true channel profitability better than gross ADR.