AHLEI CRDE key terms

Revenue per available room, calculated by dividing total room revenue by the number of available rooms, or by multiplying occupancy percentage by average daily rate. It blends price and volume into one performance measure.

Average daily rate, the total room revenue divided by the number of rooms actually sold. It shows the average price paid per occupied room over a given period.

The number of rooms sold divided by the number of rooms available, expressed as a percentage. It measures how much of the sellable inventory was used in a period.

A property's RevPAR divided by the RevPAR of its competitive set, multiplied by 100. A score above 100 means the hotel is capturing more revenue per available room than its peers.

A group of hotels in the same market that compete for similar guests and are used as a benchmark. Performance is compared against this group to judge relative strength.

The portion of total market room revenue or demand a hotel would capture if it performed exactly at the market average. Actual share above or below fair share shows competitive gain or loss.

The practice of adjusting prices and inventory controls to sell the right room to the right guest at the right time for the highest achievable revenue. It balances rate and volume across demand levels.

A discipline that uses forecasting, pricing, and inventory controls to maximize total revenue and profit from a fixed capacity. It extends beyond rooms to food, beverage, and other outlets.

Estimating future demand, occupancy, and revenue using historical data, booking pace, and market intelligence. Accurate forecasts drive staffing, pricing, and inventory decisions.

The rate at which reservations are being made for a future date compared with the same point in prior periods. It signals whether demand is building faster or slower than expected.

Evaluating whether accepting a group or block of business would displace higher-value transient demand and reduce total revenue. It compares the group's total contribution against expected displaced revenue.

Inventory restrictions that require a minimum or maximum number of nights for a stay on certain dates. They protect high-demand nights from being blocked by short, low-value bookings.

Accepting more reservations than rooms available to offset expected no-shows and cancellations. It must be managed carefully with walk procedures to protect guest satisfaction and legal obligations.

A guest with a guaranteed reservation who neither arrives nor cancels before the cutoff. The hotel may charge the room according to the guarantee terms and release the room.

A reservation backed by a payment method or authorized billing arrangement so the room is held all night. The guest is charged if they fail to arrive, and the hotel must hold the room.

Relocating a guest with a confirmed reservation to another hotel when the property cannot honor the booking. The original hotel typically pays for the alternate room and transport.

The stated rules on when and how a reservation may be canceled without penalty, including deadlines and fees. Clear policies protect revenue and set guest expectations.

The core software that manages reservations, check-in and check-out, room status, guest accounts, and billing. It connects front office activity with housekeeping and other departments.

The overnight process that reconciles the day's transactions, posts room and tax charges, verifies balances, and rolls the business date forward. It produces reports that start the next operating day.

The running record of charges and payments for a guest's stay, kept as a guest account. It is reviewed and settled at check-out and must balance with the city ledger.

The accounts receivable record for charges billed to companies, travel agents, or other approved direct-bill accounts rather than paid at check-out. It is tracked and collected after departure.

The current condition of each room, such as occupied, vacant and clean, or out of order. Housekeeping and front office share this status to assign rooms accurately.

A room status indicating the room cannot be sold because of maintenance or damage, removing it from available inventory. It differs from out of service, which is a temporary, sellable block.

A temporary status that removes a room from sale for a short period, such as for cleaning or minor repair, while it remains counted in inventory. It is usually resolved the same day.

A document listing each room's cleaning and occupancy status, prepared by housekeeping and reconciled with the front office. Discrepancies reveal errors such as sleepers or skip rooms.

A guest who leaves without settling their account, often departing without notifying the front desk. Staff watch for warning signs and may secure payment or restrict access.

A room the front office system shows as occupied but housekeeping reports as vacant and clean. It usually means a guest departed early or a checkout was not processed.

An evening housekeeping service that freshens the room, empties waste, and prepares the bed for sleep. It is common in upscale properties and adds a personalized touch.

A thorough, scheduled cleaning of a room or area beyond routine daily service, covering items like carpets, vents, and mattresses. It is planned to maintain standards without disrupting occupancy.

A planned program of inspections and repairs intended to keep equipment and facilities in good condition and avoid breakdowns. It reduces costly emergency work and extends asset life.

The operating division responsible for guest accommodations and related services, typically including front office, housekeeping, reservations, and sometimes uniformed services. It is a primary driver of hotel revenue and guest satisfaction.

The department handling reservations, registration, guest services, cashiering, and checkout. It is the main point of guest contact and coordinates closely with housekeeping and maintenance.

The department responsible for cleaning guest rooms and public areas, managing linens and supplies, and reporting room status. It directly affects guest comfort, cleanliness scores, and room availability.

A set of rooms held for a group under one agreement, with a cutoff date for releasing unsold rooms. Managing the block protects inventory while meeting the group's needs.

The number of new reservations added for a specific future date since a prior measurement. Tracking pickup helps revenue managers adjust forecasts and pricing decisions.

A written, step-by-step instruction for performing a routine task consistently to a required standard. SOPs support training, quality control, and accountability across shifts.

A document outlining a position's duties, responsibilities, reporting relationships, and required qualifications. It supports recruiting, training, and performance expectations.

A structured review of an employee's work against expectations, often held annually or periodically. It identifies strengths, sets goals, and informs development and compensation decisions.

Ongoing, informal guidance that helps employees improve skills and correct behavior through feedback and support. It is proactive and developmental rather than disciplinary.

A step-by-step process for addressing performance or conduct problems, moving from verbal warning to written warning and beyond. It gives employees clear notice and a chance to improve.