CRME flashcards
CRME · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- RevPAR
- Revenue per available room, calculated as room revenue divided by available rooms or as ADR multiplied by occupancy. It combines rate and occupancy into one performance metric.
- TRevPAR
- Total revenue per available room, calculated as total revenue (rooms, F&B, other) divided by available rooms. It reflects total revenue management beyond rooms.
- GOPPAR
- Gross operating profit per available room, calculated as gross operating profit divided by available rooms. It measures profit after departmental and undistributed expenses.
- ADR
- Average daily rate, calculated as room revenue divided by rooms sold. It measures the average price achieved per occupied room.
- Occupancy
- The percentage of available rooms sold, calculated as rooms sold divided by rooms available. It measures demand capture and capacity utilization.
- RevPAR Index
- A property’s RevPAR divided by the competitive set’s RevPAR, multiplied by 100. Values above 100 indicate outperformance versus the competitive set.
- Unconstrained demand
- Demand that would have materialized absent capacity limits. It is estimated by adding turned-away business (regrets and denials) to actual bookings.
- Booking curve
- A graph showing cumulative reservations over time before arrival. Comparing current pace to prior periods reveals pickup strength and forecast accuracy.
- Pickup
- New reservations minus cancellations over a period. It is used to update forecasts and adjust rates and inventory controls.
- MAPE
- Mean absolute percentage error, a forecast accuracy measure. Lower values indicate better forecasts; it is calculated as the average absolute percentage difference between forecast and actual.
- Rate fencing
- Rules such as advance purchase, cancellation penalties, and minimum stay that prevent customers from buying down to lower-priced segments.
- BAR
- Best available rate, the lowest unrestricted rate. It serves as the reference for rate parity and discounting decisions.
- Rate parity
- The requirement that the same room rate and conditions appear across all distribution channels. Exceptions exist for loyalty members and opaque channels under certain regulations.
- Price elasticity
- The percentage change in quantity demanded for a 1% change in price. Elastic demand is sensitive to price; inelastic demand is not.
- Hurdle rate
- The minimum rate at which a room should be sold. It reflects marginal cost and opportunity cost and guides accept/reject decisions.
- Overbooking
- Selling more rooms than available to offset no-shows and cancellations. The optimal level balances walk cost against revenue from overselling.
- Closed-to-arrival
- An inventory control that prevents new arrivals on a date while allowing stays that span that date. It protects high-demand dates.
- Displacement analysis
- Evaluating whether a group or contract piece increases total revenue versus the transient demand it displaces. It considers net revenue contribution.
- Length-of-stay controls
- Minimum and maximum stay restrictions that protect high-demand nights and prevent long stays from blocking higher-rated shorter stays.
- OTA
- Online travel agency, a third-party channel that sells hotel rooms for a commission. It provides reach but reduces net revenue and guest ownership.
- GDS
- Global distribution system used primarily by corporate and travel agent segments. Content accuracy in rate, availability, and description is critical.
- Channel cost
- Commission plus transaction fees plus loyalty or merchant fees. Net revenue per channel should be compared, not just gross rate.
- Metasearch
- A search engine that displays hotel rates and links to booking channels. It influences click-through and direct booking share.
- CLV
- Customer lifetime value, the net profit a customer generates over the relationship. It guides acquisition and retention investment.
- Cost-to-serve
- The cost of serving a customer, including room cleaning, amenities, front desk, reservations, loyalty rewards, and channel commissions.
- RFM analysis
- Recency, frequency, and monetary value analysis that ranks customers by behavior. It supports targeted offers and loyalty tier design.
- Segment contribution margin
- Segment revenue minus variable costs minus segment-specific fixed costs. It is used to prioritize segments and pricing decisions.
- Competitive set
- A group of hotels that compete for the same guests in a defined market. It is used for benchmarking and rate positioning.
- Total revenue management
- Extending optimization beyond rooms to F&B, meeting space, and ancillary revenue. It evaluates total contribution rather than room revenue alone.
- Commercial strategy
- Integration of revenue management, sales, marketing, distribution, and digital to maximize total profit. It requires shared goals and data across functions.
- Rate parity clause
- A contractual clause requiring a hotel to offer the same rate across channels. Such clauses are subject to competition law and are restricted in some jurisdictions.
- GDPR
- The EU General Data Protection Regulation governing collection, use, and retention of personal data. Consent and purpose limitation apply to guest data.