research about whether customers are satisfied with the hotel, what Guarantee: Commitment that group will meet certain minimums such as room count or face financial penalization. MICE: Industry acronym for Meetings, incentives, Conference, & Exhibitions. Second Tier City: More appropriately referred to as a midsize city. Not open to the general public. hotel happens to be. Subjects of comparing could include product/service, room rate, or quality. Incidental Charges: Anything that costs extra than the hotel room rate. European Plan (EP): One hotel package that excludes coverage of meals. The hospitality industry is the broader industry that includes the hotel industry. Day Guests: Guests who arrive and depart the same day. Although some terms may be recognizable, others can now be added to your business vocabulary. They will create and deliver Shoulder Season: Period adjacent to the peak season with lower occupancy, but not the lowest occupancy of the year. CPOR (Cost per occupied room): Formula that calculates the average cost of occupied rooms. 10. the hotel could do better, and what the public perception of the Very Important Person (VIP): Individual who should receive special or elevated treatment based on their role or relationship to an event. Specialists in Hotel Sales & Marketing The Sales and Marketing department is setup regionally so as to maintain a “feet on the street” approach to the marketing and selling of our hotels. Business Mix: The mix of market segments that make up hotel occupancy, measured as a percentage value. FULL SERVICE HOTEL SECTION SALES & MARKETING SUBJECT SALES & MARKETING DEPARTMENT SM-SOP-01 Pages 1 Date Issued: 6/1/97 Effective Date: 7/1/97 POLICY: The Sales & Marketing function will encompass Group Room Sales, Reservations Sales and Catering Sales. Half-Pension: Similar to a half-board, however secondary meal is dinner. Market Parity: The process of assessing your product or service contribution against a competitor set to define your market price and confirm competitiveness. Familizartion Tours (FAM): Organized trips for members of the travel trade to familiarize them with tourism destinations. Occupancy: The measure of fill by dividing the total number of rooms occupied by the number of rooms available. Purchase Department: The purchase department is responsible for procuring the inventories of all the departments of a hotel. Government Planner: A planner who manages event for government functions at the city, state, or local level. Quick Set: A setup template that reduces turnover times and work between events and thus results in a price break for the group. Central Reservations (CRS) and Global Distributions S… Click here to read our complete guide on hotel marketing. Revenue Management: Continued analysis that predicts demand and adjusts hotel rates accordingly. Global Distribution System (GDS): A computer software company that provides travel agencies with hardware for airplane, hotel, and car reservations. Source of Business: A breakdown structure a hotel uses to track how business brought in and which channel it came from. Bed Tax: An added price to a hotel room imposed by the city or country based on where the hotel is located. Social Event: An event with the primary purpose of networking or celebrating a life event such as a wedding. Cabaret Set-up: Cocktail tables, chairs, and a stage make up the room set. Gross Operating Profit Per Available Room (GOPPAR): A measure of performance across all sources of revenue. Look-to-book ratio: Rate of traffic that looks at a listing on a website compared to the number that book. 3. Submitted by professionals in the hotel and planner side of hospitality, these were the most common hotel acronyms and abbreviations that professionals need to know. Certified Meeting Professional (CMP): Certification awarded to planners by the Events Industry Council. Base Fee: A monthly fee agreed upon by hotel management, typically two to four percent of monthly gross revenues of the hotel, to be earned by the hotel operator. Continually improving direct consumer activity 4. Common incentive offered when negotiating room blocks. Market Share: A percentage of business within a market category. Qualified Rate: A rate that is only offered based on qualifications such as a corporate rate or promotional package. Stop Sell: The act of stopping the hotel from being booked on distribution channels, used when hotel is sold out during a certain time period. War Room: Another term for the office for meeting on-site staff. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply. Trial Close: A technique used to close a sale by ensuring the stakeholder understands the conditions of purchase and is serious about buying. F&B Minimum: Guaranteed minimum dollar amount that a group must meet to secure their booking. Run Of House (ROH): ROH in hotel terms means a basic room type with no guaranteed specific amenities. Optimize hotel sales and marketing with better distribution. Destination Marketing Organisation (DMO): Non-profit financed by occupancy taxes with the goal of promoting travel, tourism, and events in a host city. increasing the use of the hotel by businesses, conventions, Room Rack: A continually updated card index system reflecting occupied and vacant rooms, Rooms Management Module: An application from a computer-based property management system used in the front office to maintain up-to-date information on the status of rooms, assists in the assignment of rooms during registration, and helps coordinate various guest services. Especially with the growth in popularity of websites like Airbnb and Home Away, it’s become even more challenging to stand out against the competition to gather more bookings. Gross Operating Revenue (GOR): A hotel’s total operating revenue. Term for popular event city that does not meet infrastructural requirements such as convention space to be considered a first-tier city. Sales and Marketing Department: The major role of the sales and marketing department is to bring in business and also to increase the sales of the hotel’s products and services is the major task of the department. You will also work directly with guests in the planning of … Certified Manager of Exhibits (CME): Rewarded to planners by the Trade Show Exhibitors Association (TSEA). Group Demand: Group business predicted for a specific period or date. You’ll also develop and oversee different types of marketing campaigns, such as those that use social media, direct mail or e-mail. Charter Group: An organized group of travelers with a custom itinerary. Banquet: Dinner for numerous people that is generally ceremonial in nature. RevPAR Index (RPI): Metric that indicates how a specific hotels RevPar compares to that of its compset. Transient Business: Segment of business comprised of individual bookings as opposed to bookings from a group. Two-pack Hotels: A conjoined property of two hotels that share resources, such as back-of-house operations, but operate separately. Parties have no control over an Act of God, thus they’re not legally bound to fulfill contract responsibilities. The sales and marketing department devises strategies for increasing the use of the hotel by businesses, conventions, academic conferences, and individuals. House Manager: The manager underneath the General Manager in ranking that is responsible for an individual hotel, unlike the General Manager–who covers more than one. Room Block: A specific set or count of rooms that are reserved for guests in a group. Banquet Setup: Seating arrangement created by the grouping of banquet rounds to help facilitate food service. RevPAS = Total space rental revenue / total square feet of event space. Hotelligence: Historical electronic booking data reports from Global Distribution Systems (GDS) that include information on rates and length of stay patterns, business sources, for their local competitive sets, and individual subscriber properties. Booking Patterns: Patterns of confirmed sales in a hotel. Confidential Tariff: Discounted prices solely quoted to wholesalers, tour operators, and travel agents (unavailable for public use). Amenity: Complimentary item or service provided by the hotel for guests or groups. Free Event Management Software for Planners and Properties. Large hotels have specialised sales … The sales and marketing department is responsible for generating new business for the hotel. 2. Transient Demand: Prediction for business from the transient segment for an upcoming period. Alternative Availability: Suggesting other available properties when the requested property is unavailable. Ecotourism: A responsible way of traveling to natural areas that conserve the environment and sustains the well-being of local people. Seamlessly manage and optimize group sales performance across your entire portfolio. Wholesaler: A third-party organization that sells hotel rooms such as sites, distribution channels, extranets, or merchants. Scout Lead: A research tool to scope out potential sale lead. House Count: The total guest occupancy of a hotel at any given moment. Pipe & Drape: Tubing and drapery that separates individual booths or stations. Décor: Lighting, table sets, props, and other elements used to create an aesthetic theme for an event. A Sales and marketing manager in the hotel industry is responsible for maximizing a hotel’s revenues by developing programmes to increase occupancy and make profitable use of its accommodation, meeting and leisure facilities. Usually constructed of lightweight aluminum. Preferred Rate: A negotiated rate between the hotel and a specific client. Daily Delegate Rate – A per person rate for conference room rental, refreshments, catering, and any other services that a conference/meeting might require. Third Party Planner: An experienced intermediary who may coordinate site selection or end-to-end event management for a planner. Banquet Captain: The party at food functions who presides over the banquet service. Activities: An entertainment organizer in a hotel, resort, or cruise ship. Average Published Rate (APR): A rate taken by averaging all types of hotel rooms throughout the year according to high or low season. CRS: Acronym for central reservation system. Walk: Moving guests to a nearby hotel when overbooking occurs. Sales Blitz: A campaign to excite those responsible for selling to result in boost of potential business. Icon: A famous landmark or facility associated with the destination. “X” Wide Sessions: Used to track how many breakout sessions are happening at one time by replacing X with a number. KPI (Key Performance Indicator): Metric widely used as a measurement of business performance. Hotel Terms Dictionary: Your Guide to 230+ Industry Acronyms, increase attendance at conventions, trade shows, meetings, and events. Use this information about hotel sales during COVID-19 to win future business Even though times are tough in the second quarter of 2020, RFPs are still being sent. The challenge of being in the hotel marketing industry is the overwhelming amount of competition. Your group bookings are more successful when you acquire them in a cost-effective way. Inbound Tourism: The traffic of international tourists spending foreign money contributing to the export economy. Lanai: A room that has a balcony or patio with an overlook of water or garden. Hotel sales and marketing. You may need to research what will appeal to guests. Catering Sales Manager: Hotel rep who handles food & beverage for group sales. Rack Rate: The original price of a hotel room before any discounts or promotional rates are applied. Market Segments: An identified group in an overall market to which a specific service appeals. Sales Yield: The income or profit arising from sales. Enterprise Planner: An event planner that works exclusively for a large corporation coordinating brand events that range from internal meetings to conferences. These teams work together to generate business ending in a boost of revenue and sales–and to put on stunning events. At smaller hotels a sales executive handles businesses from all market segments, He or she may deal with Travel agents, Tour operators, Event planners, Corporate guests, online travel agents and travel consortia. Peak Night: Term for the date of an event where the room block is the largest. Boutique Hotels: Smaller luxury hotels that separate themselves from large competitors by their service and product offering. Forecasting Model: Models or systems used to predict KPIs. When did organ music become associated with baseball? Generally used to quickly transform a meeting setup into a banquet setup. Channel Management: Techniques used by hotels to optimize performance across distribution channels such as OTAs. Distressed Sale: A desperate need to sell assets due to unfavorable conditions results in seller receiving a lower price. Usually favors discussion and interaction. What is sales and marketing department in hotel. Closing Ratio: The percentage of calls to contacts resulting in a verified sale. holding a conference; or they will send out information to people Last Room Availability (LRA): A combination of negotiated and group rates that allow agents to book a hotel’s last available room at a contracted rate. (Ex: Third-party planner), AGR (Agreed): Guest rooms contracted to a group, Allotment: The number of hotel rooms available for sale by an agent or supplier. Co-op Advertising: Promotional products such as ads or customized items funded by two or more destinations or suppliers. An exhibition of products and/or services held for members of a common or related industry. Transient Occupancy Tax: City or County tax added to the price of a hotel room. Room Nights: Rooms blocked or occupied multiplied by the number of nights the rooms are reserved. Studying the basics of the hotel sales and marketing department is simple using our entertaining lessons. Forecast: An analysis that renders revenue expectations for an upcoming period. Hotel industry example: According to a 2019 sales and capitalization rate trend report by HVS, as of year-end 2018, implied lodging REIT cap rates had increased by 230 basis points compared to year-end 2017 because of the stock market correction and concern regarding slowing hotel NOI growth mixed with higher interest rates. 2. What does contingent mean in real estate? All Rights Reserved. The sum of net revenues from all operating departments in addition to rentals and other income per available room for the time period, divided by total available rooms during a specified time period. Run Of House (ROH): ROH in hotel terms means a basic room type with no guaranteed specific amenities. Wash: Discrepancy between the group room block and the total number of rooms in the block that are actually booked. Hotel sales and marketing have changed dramatically in the past few years, primarily as a result of technological advances, and the hospitality industry must stay up to date with these changes. RevPar: Revenue per available room calculated on the number of rooms available to sell in a hotel. Main course is presented on a tray to the host at the table. Crescent-Round Setup: Seats occupy only about two thirds of a table so that no attendees have backs to the speaker. Affinity Group: A group formed around a common interest where members are usually of the same organization. Proprietary Booking Engine: An individual or group of hotels that own and operate their Internet reservation system. Role of Front office in Hotel Sales and Marketing. Here are 99 marketing and sales terms that you should know. Average Daily Rate (ADR): A metric system used in the hospitality industry to measure the average rate paid for rooms sold. Net Rate: A hotel rate given by travel agents and tour companies that can be marked up and sold at a higher rate to the end customer. Revenue Per Available Square Foot (REVPAS): A metric that used to calculate the performance of a hotel in regards to event space bookings. 2. Introduction This reports aims to discuss the key trends and issues that are currently impacting sales and marketing within the hotel industry. Refreshment Break: Period between sessions of an event that is accompanied by snacks and beverages. Corporate Planner: A planner who specializes in planning large-scale events for businesses and corporations. Unconference: Conference where the agenda is dictated in real-time by participants. Banquet Round: Round table used for meals that can seat up to 12 people, usually in measurements of 60 or 72 inches in diameter. Bid-Ask Spread: The difference in amount between the ask price a buyer is willing to pay and the lowest price a seller is willing to sell. Minimum Acceptable Rate (MAR): Lowest rate that a hotel will accept from a group, determined via displacement analysis. Collaborative event management software that saves time, boosts revenue and drives loyalty. The responsibilities of each group are closely linked. Press Trip: Travels with the main purpose of writing about that destination. Intranet: A private computer network using Internet to securely share part of an organization’s information within itself. SMERF: An acronym for the group travel market for social, military, educational, religious, and fraternal segment. Repeat Business: Returning business generating increase in profits. Hollow Circle Setup: Circular room arrangement in which tables/chairs all face one another. Sales and marketing go hand in hand – sales must be enabled by good marketing to be effective. 1. Extranet: Back-end of a hotel sales website allowing hotels to log in and enter all their rates, availability, and restrictions. Commission: Payment made to a party for bringing business to a hotel. Advertising. No-Show: Term for reservations where the confirmed party does not show up without contacting the hotel to cancel or change. 125 sales offices and Global Sales Agents (GSA’s) 2. Property Management System (PMS): A software hotels use to manage all operations. Usually communicated as a number of rooms or percentage of total rooms available. Partition: Portable wall or barrier that is wheel-mounted and can be used to divide a large space into smaller spaces. presentations to corporations about why the hotel would be perfect English Service: Vegetables are served in bowls and readily on the table for guests to serve themselves. (including travel agents) in distant cities about why a traveler Attrition: A clause included in a hotel contract to ensure an organization fulfills their contracted obligations. SCOPE: Distressed Inventory: Last-minute discounted hotel rooms to ensure a property reaches full capacity. Profits Per Available Room (ProPAR): A metric that calculates net revenue per available room. Mattress Run: A traveler who is staying a number of nights in order to rack up points for their frequent stay program specific to that hotel chain. Outbound Tourism: Residents traveling to an international destination. Top hotels have created channels where planners can book event spaces directly. Full Board: A rate that includes a bed and covers all standard meals. Occupancy Rate: An average of occupancy over a defined period of dates. They also do Feeder City: A distant city that attracts travelers to gateway cities. This is used in the hotel industry to determine who responds to a lead. Attrition Fees: Fees associated with unused rooms in a room block. Fenced rate: Rate that is contingent on certain requirements being fulfilled by the booking party. The marketing team is responsible for converting prospects into paying guests and spreading the brand message. Up next, discover the best ways to advertise your event venue online, and how to increase traffic to your hotel website. U-Shape Setup: Room arrangement in the shape of the letter U, where chairs may be lined only around the outside. ... sales or other management tasks. These three departments will report to the Director of Sales. Length of Stay (LOS): Total nights that a guest spends with a hotel. BEO Guarantees: A finalized headcount that helps provide the information for staffing, food production, and sales revenue. Providing leadership and guidance, our Regional Directors of Sales work in conjunction with property General Managers and Sales Teams to capitalize on market opportunities and leverage national campaigns. Usually used for group business. Lead: Term for a potential booking that has shown interest but has not yet booked. Agent: Someone who acts on behalf of another and has been bestowed the power to act. What is sales and marketing department in hotel? By clicking 'Sign Up', you consent to allow Social Tables to store and process the personal information submitted above to provide you the content requested. Rooms Yield: An equation averaging revenue from all rooms, divided by number of rooms in a hotel, divided by 365 nights. Act of God: Natural disaster that could not have been predicted at the time of the contract signing. Also known as Revenue Management. Lead Conversion: A lead that has been changed into an account, contact, or potential sale. Below the Line Promotion: Free printed promotional items, such as brochures and direct mail, set to build a relationship with the consumer. Room Class: A grouping of rooms based on similar value characteristics. Merchant Rate: A business model used by OTAs to markup hotel net rates to sell to the public. Attendance Building: Programs for marketing and promotional purposes designed to increase attendance at conventions, trade shows, meetings, and events. This is an integration of Revenue Management, Sales, Marketing, eCommerce and Operations. Butler Service: Guests are served hors d’oeuvres on platters by servers. Who is the longest reigning WWE Champion of all time? Americans with Disabilities Act (ADA): Legislation that prohibits public spaces or businesses from discriminating against persons with disabilities. Equal to the hotel’s value divided by the Revenue per Room. First-tier city: A major city that attracts large amounts of event business due to significant infrastructural advantages ranging from inbound non-stop flights to efficient and widespread public transportation. Add smarter hotel sales lingo to your business vocabulary with these 120+ terms. 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