Glossary of Hospitality Terms

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Glossary of Hospitality/Tourism Terms

American Plan (AP)
A type of room rate which includes the price of the room, breakfast, lunch, and dinner. Also known as full pension.

Apartment Hotel
Accommodation in apartment-style units rather than rooms: with minimum or expanded in-suite cooking facilities. Defined by legislation for licensing and classification purposes.

Available Rooms (suites, beds)
The number of rooms normally available on a day to day basis, LESS those permanently used for some purpose other than guest occupancy.

Average Daily Rate (ADR)
The total room revenue for a given period (day, month to date, month, year to date), divided by the number of rooms occupied for the same period. Frequently used as a measure of economic performance.

Bed and Breakfast (B&B)
A type of room rate which includes the price of the room and breakfast. Also known as Continental Plan.

Boutique Hotel
Historical, classic buildings, remodeled into boutique hotels with usually have less than 30 rooms.

Central Reservation System (CRS/CReS)
The ability of guests to make a reservation for one out of a number of hotels by contacting one agency, contracted by the hotels acting as a group, to operate this "central" reservation service.

Complimentary Room
An occupied guest room for which no price is charged. This may include a room occupied by a hotel employee.

Condominium Hotels
Customers purchase fee-simple equity in the units - the hotel's guestrooms. Unit owners may live in the hotels permanently or use them as second and third homes. Depending on the hotel's policy, unit owners may rent their units independently or through the management company's rental program and derive income through a revenue-sharing arrangement. Unit owners also incur budgeted maintenance and operating expenses. Depending on the management company, unit owners have varying degrees of access to their hotel's amenities and services.

Credit Card Commissions
A fee paid to credit card companies based upon a contracted percentage of credit card charges accepted.

Destination Clubs
The newest entrant to lodging, this niche most closely resembles country clubs in ownership structure. While developers of destination clubs expect to branch out into other price segments, for now this niche targets the most affluent of travelers. Customers pay initiation fees that can run as high as $500,000 and annual dues running as high as $25,000. In return, customers get to stay for weeks at a time in multi-million dollar residences and villas in prime urban and resort locations and enjoy a full range of amenities and services.

Facilities
Core physical features: accommodation, restaurants, bars, and meeting rooms.

Frequent Independent Traveler (FIT)
Designation which applies to visitors who arrive on their own as opposed to being a part of an organized group.

Franchise
The right to market a service and/or product often exclusive for a specified area, as granted by the manufacturer, developer or distributor in return for a fee: prevalent in the fast food industry but increasingly adopted within the hotel community.

Front Office
An office usually situated in the lobby, always located inside the main entrance, whose primary function is to control the sale of guest rooms, provide keys, mail, information service for guests, maintain guest accounts, render bills, receive payments as well as providing information to other departments within the hotel.

Guest Account
An itemized record of a guest's charges and credits, which is maintained in the front office until departure. Also referred to as a guest bill, guest folio, and/or guest statement.

Guest Amenities
Not to be confused with "amenities", this is the term given to the range of disposable items provided in guest room bathrooms and includes such items as shampoo, lotion, conditioner, soap, toothpaste, toothbrush, shower caps, etc… The cost of these items are built into room...
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