Hotel Revenue Management Glossary – Terms beginning with the letters D & E

Need to know what a hotel term means? Below is a list of key Hotel Revenue Management Terms you may encounter when it comes to hotel revenue management. We explain definitions of terminology industry jargon from hotel revenue management.

Terms being with the letter D & E below, rest to follow on further Blogs…

Distribution Strategy – What is the meaning/definition of Distribution Strategy in the hospitality industry?

Distribution Strategy determines when and through which channels to sell hotel rooms based upon an analysis of the costs of acquisition of the individual channel. All the costs of acquisition of each individual channel will be considered and calculated before the hotel finalise the list of channel distribution they will be using. By using the right channel of distribution and driving business to more cost-efficient channels during high demand periods hotels can maximise their profitability.

Distressed Inventory – What is the meaning/definition of Distressed Inventory in the hospitality industry?

Distressed inventory is used in hotels to refer to rooms that are not expected to be sold at full price. For these rooms, hotels often significantly reduce prices to encourage consumers to book last-minute and to avoid their rooms going unoccupied.

Dynamic Pricing – The process of actively applying revenue management by selling the same products at different prices to different customers.

Displacement Analysis – What is the meaning/definition of Displacement Analysis in the hospitality industry?

For a hotel, the idea of making money through accepting group business bookings sounds like a good idea – an obvious thing to do. But is that always the case? The answer is No!

Sometimes it would be prudent to deny a group booking in favour of leaving rooms available to transient (non-business) customers and walk-in guests. The method used to make this judgment is called Displacement Analysis.

Design Hotel – What is the meaning/definition of Design Hotel in the hospitality industry?

Design Hotel is as the name implies hotel that is notable for its design. It is focused on the visual concept, in its architecture, on interior decoration, on aesthetics style and décor. The appearance is the main appeal of a Design Hotel and the aim is to evoke a ‘wow’ feeling in the (potential) guest.

Denial – What is the meaning/definition of denial in the hospitality industry?

Well, it is quite simple. When a hotel cannot accommodate more guests, because it is fully booked at that time, then their response to the potential customers’ request is called a Denial.

Demand Generators – What is the meaning/definition of demand generators in the hospitality industry?

In hospitality, meeting the demand for goods and services is not only about meeting customers’ needs, whenever required; sometimes, a hotel or other type of hospitality business can create demand.

Demand-Based Pricing – What is the meaning/definition of Demand-Based Pricing in the hospitality industry?

In the Hospitality Industry, prices for services do not have to be permanently set. They can be adjusted, depending upon how many rooms, meals, etc. are needed by customers at any time. This is what Demand-Based Pricing is all about – the price of something changes depending upon how much demand there is for it at a given time.

Demand – What is the meaning /definition of Demand in the hospitality industry?

By Demand, we mean the level of consumer interest and need: demand for beds, demand for family rooms, demand for conferencing, event space etc.

Days Before Arrival – What is the meaning/definition of Days Before Arrival in the hospitality industry?

DBA stands for Days Before Arrival. It’s the number of days remaining before the expected arrival date of guests.

Extranet – What is the meaning/definition of Extranet in the hospitality industry?

An Extranet is a website that allows controlled access to partners, vendors, and suppliers or an authorized set of customers. In other words, it is a channel which can be administered externally via a login into the system.

EBITDAR – What is the meaning/definition of EBITDAR in the hospitality industry?

EBITDAR stands for: Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent

It is the same calculation as EBITDA, with the exception that rents and/or restructuring costs are excluded from the expenses.

EBITDA -What is the meaning/definition of EBITDA in the hospitality industry?

EBITDA stands for: Earnings Before Interest, Taxes, Depreciation, and Amortization. This KPI is used to determine how profitable a company or business is regarding its operations (the profit on the products it produces and sells).

Early Bird Discounts – What is the meaning/definition of Early Bird Discount in the hospitality industry?

Hotels can increase advanced bookings by offering something called an Early Bird Discount. This is a type of promotion that many hotels across the world use to increase revenue.

E-commerce – What is the meaning/definition of E-commerce in the hospitality industry?

E-commerce is also known as Electronic Commerce (or EC). It refers to commercial transactions conducted electronically on the Internet. It means basically any form of business transaction in which

the parties interact electronically rather than by physical exchanges or direct physical contact.

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