AHLEI CHA key terms

A leadership approach in which managers adjust their level of direction and support to match each employee's competence and commitment on a specific task, rather than using one fixed style for everyone.

A style that motivates staff by articulating a compelling vision, modeling expected behavior, and developing people's capabilities, so employees commit to goals beyond simple compliance or reward.

A philosophy in which the leader's primary aim is to serve employees and guests by removing obstacles, providing resources, and supporting growth, with results following from that service orientation.

Assigning a task and the necessary authority to a subordinate while the manager retains accountability for the outcome, freeing leader time and building staff capability.

An ongoing, one-to-one development process in which a manager observes performance, gives specific feedback, asks questions, and agrees on actions that improve an employee's skills over time.

Specific, timely information given to an employee about the effect of their behavior or work output, intended to reinforce effective performance or correct a gap.

A graduated sequence of corrective steps, typically verbal warning, written warning, suspension, and termination, used when an employee's conduct or performance does not improve after feedback.

The degree to which employees feel invested in their work and willing to put in discretionary effort, shaped by recognition, fair treatment, clear expectations, and opportunities to grow.

The percentage of a property's workforce that leaves and is replaced during a period, usually calculated as separations divided by average headcount; high rates raise recruiting and training costs.

A concise description of the future state an organization wants to achieve, used to align decisions and motivate staff toward shared long-term goals.

A short declaration of an organization's purpose, core business, and values that guides daily operating decisions and communicates what the property exists to do.

The obligation of a person to answer for results and decisions within their assigned area of responsibility, supported by clear standards, measurement, and consequences.

A performance approach in which manager and employee jointly set measurable goals, then review progress against them at agreed intervals, linking individual effort to property targets.

The practice of selling the right room to the right guest at the right price at the right time, using demand forecasting, pricing controls, and inventory restrictions to maximize room revenue.

Revenue per available room, calculated as total room revenue divided by available rooms, or as occupancy percentage multiplied by average daily rate; it combines price and volume into one metric.

Average daily rate, calculated as total room revenue divided by rooms sold, showing the average price actually achieved for occupied rooms in a period.

Rooms sold divided by rooms available for the same period, expressed as a percentage; it measures how much of the room inventory was sold.

A projection of future demand, revenue, or costs built from historical data, bookings on the books, and market conditions, used to plan staffing, pricing, and cash needs.

A financial plan for a defined future period that sets expected revenues and approved expenses by department, providing the standard against which actual performance is measured.

Comparing actual results with budgeted or forecast figures, identifying the size and cause of differences, and deciding what corrective action, if any, is needed.

A budget restated for the actual level of activity achieved, so that variable costs are compared at the volume really sold rather than at the originally planned volume.

Gross operating profit per available room, calculated as gross operating profit divided by available rooms; it shows profitability per room after departmental and undistributed operating expenses.

A hotel's income after all departmental expenses and undistributed operating expenses are deducted from total revenue, but before fixed charges such as rent, property taxes, insurance, and management fees.

Net operating income, the income remaining after all operating expenses and fixed charges are deducted from revenue but before debt service and income taxes; a key measure of property value.

Capitalization rate, an income-based valuation measure calculated as net operating income divided by property value or purchase price; it reflects the return an investor expects from the asset.

Total labor expense, including wages, payroll taxes, and benefits, divided by total revenue for the same period, used to judge whether staffing is in line with business volume.

The share of additional revenue above budget that converts into additional profit, calculated by dividing the change in profit by the change in revenue for the period.

The Uniform System of Accounts for the Lodging Industry, a standardized chart of accounts and reporting format that lets hotels present revenues and expenses consistently for comparison.

A profit center's revenue minus its direct expenses, such as rooms revenue less rooms payroll and guest supplies, before undistributed operating costs are allocated.

A planned ratio of output to labor input, such as rooms cleaned per housekeeper hour or covers served per server hour, used to schedule staff in proportion to expected business.

A small set of measurable targets, such as occupancy, RevPAR, labor cost percentage, or guest satisfaction score, tracked regularly to judge whether the property is meeting its goals.

A performance framework that tracks measures across financial, customer, internal process, and learning perspectives so managers do not judge success on financial results alone.

The sales volume at which total revenue equals total fixed and variable costs, so the operation earns neither profit nor loss; useful for pricing and event or outlet decisions.

Revenue minus variable costs for an item or department, showing how much each sale contributes toward covering fixed costs and producing profit.

A structured review of an operation's internal strengths and weaknesses and external opportunities and threats, used to shape strategy, positioning, and capital or marketing plans.

The operating area responsible for front office, reservations, housekeeping, and guest services, coordinating room sales, arrivals, cleanliness, and guest problem resolution.

Accepting reservations beyond physical capacity, based on expected no-shows and cancellations, to protect occupancy; it requires walk procedures when demand exceeds rooms available.

A workload measure assigning time credits to room types and cleaning tasks so that total credits can be converted into required housekeeper hours and daily schedules.

See USALI; a standard accounting structure for lodging that organizes revenue and expense by department so results can be compared across periods and against industry benchmarks.

The overnight process that reconciles the day's transactions, posts room and tax charges, balances cash and credit card totals, and rolls the hotel's business date forward.