10 Hospitality Vocabularies You Should Know

Do you want to kickstart a career in hospitality?

Here are 10 hospitality vocabularies you should know:

ADR: Average Daily Rate is the revenue generated by the income from hotel rooms sold, divided by the total number of rooms sold.

ARR: Average Room Rate is the total room revenues divided by the number of rooms occupied, excluding any rooms offered as complimentary.

MOD: Manager on Duty, the ‘main’ guy looking after the smooth running of the hotel operations.

OTA: Online Travel Agencies are a 3rd party that often sell a hotel’s room inventory on their behalf in exchange for a commission fee.

PAX: In hotel management, it refers to “No. of Guests”. You might come across terms such as 1000 Pax Wedding, 03 Pax per room pertaining to the number of people involved in each case.

PMS: Property Management System is essentially a software that manages the operating activities of the hotel and oversees and coordinates the relationship with the customer and services.

PRPN: Per Room, Per Night.

RevPAR: Revenue Per Available Room is the total cost of the guest room divided by the number of available rooms in the hotel.

Rack Rate: Simply put, the standard or asking price for a room, before any discounts are applied is termed as rack rate.

PMS: Property Management System is essentially a software that manages the operating activities of the hotel and oversees and coordinates the relationship with the customer and services

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