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18 Terms

Commercial Glossary

Commercial metrics, business KPIs, and revenue-focused marketing terms.

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Strategy & Planning

Audience Segmentation

Dividing potential guests into groups based on behaviour, demographics, or interests to tailor marketing messages.

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Average Daily Rate (ADR)

A hotel performance metric showing the average income per paid room occupied in a given time period.

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Booking Engine

An online reservation system that allows hotels to take direct bookings through their website, usually integrated with PMS or channel managers.

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Booking Funnel

The journey from awareness to reservation. Includes discovery, consideration, booking, and post-stay loyalty stages.

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Booking Window

The number of days between when a guest books and their arrival date - valuable for campaign timing and segmentation.

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Build vs Buy

The strategic decision between developing custom solutions or purchasing existing products and services.

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Channel Manager

Software that synchronises a hotel's room availability and rates across booking platforms (OTAs) and its direct booking engine.

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Customer Journey

The sequence of interactions a potential guest has before making a booking, from search to post-stay follow-up.

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Customer Lifetime Value (CLV)

The total revenue a hotel can expect from a guest throughout their entire relationship with the brand.

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Direct Bookings

Reservations made directly via a hotel's owned channels (website, call centre, app) rather than through OTAs or intermediaries.

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Dynamic Pricing

Adjusting room rates in real time based on demand, seasonality, and competitor pricing.

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Multichannel Campaign

Marketing approach combining multiple channels (SEO, PPC, email, social) for unified brand visibility.

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Post-Stay Email

Automated message sent to guests after departure, often requesting a review or promoting repeat stays.

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Property Management System (PMS)

Core hotel software used to manage reservations, guest profiles, room inventory, housekeeping, billing, and operational workflows. Often integrated with the booking engine and channel manager.

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Revenue Per Available Room (RevPAR)

A key hotel KPI calculated by dividing total room revenue by the number of available rooms.

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Scalability Risk

The potential for systems to fail or require significant rework as usage or data volumes grow.

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Total Cost of Ownership (TCO)

The complete cost of a system over its lifecycle, including development, hosting, maintenance, and opportunity costs.

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Vendor Lock-In

Dependency on a specific vendor's technology or services that makes switching costly or difficult.

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