The business travel hotel industry can be very jargon and acronym heavy. So, we’ve compiled a beginner’s guide to essential business travel hotel terms and acronyms to help you understand the language.
Corporate rates
A discounted rate negotiated for a block of 10 or more rooms associated with a company, such as law firms or entertainment companies. These rates often fall under a Preferred Hotel Programme (PHP) to secure long-term savings for frequent travellers.
Negotiated rates
Special rates agreed upon with corporate accounts or organisations. These rates are tailored to specific companies and can include additional perks like flexible cancellation or complimentary Wi-Fi, for instance.
Preferred Hotel Programme / PHP
A programme where businesses partner with select hotels to secure discounted rates, extra amenities, and consistent availability. Companies using PHPs enjoy streamlined booking processes and predictable costs. It is sometimes referred to as a Preferred Hotel List.
ARR / Average Room Rate
The average amount paid for rooms over a specific period. It’s calculated by dividing total room revenue by the number of rooms sold.
Why it matters
Knowing a hotel’s ADR helps determine how much you might pay per night. Comparing ADR across different hotels can help you asses value for money. And, if a hotel’s ARR is significantly higher during your travel dates, you might be booking during peak days, and you could save by adjusting travel commonly used dates.
Best Available Rate /BAR
A variable rate that fluctuates based on demand, occupancy, and booking dates. Also known as a flexible rate.
Why it matters
While BAR might not be the cheapest option, it often includes added flexibility, such as free cancellations.
LRA / Last Room Availability
A clause in corporate contracts allowing customers to book any room, even the last one available, at their negotiated rate. Therefore, as long as there’s a room available, the rate should be applied.
Why it matters
If your company has a negotiated rate with a hotel, LRA guarantees you won’t face last-minute price hikes during high-demand periods. This is especially valuable for last-minute business travel.
Bed Night
A measure of hotel occupancy calculated by multiplying the number of guests by the number of nights stayed. For example, 12 guests staying Monday through Thursday would generate 36 bed nights.
Why it matters
Hotels often use bed night data for forecasting and pricing strategies.
LOS / Length of Stay
LOS tracks the average number of nights guests spend at the hotel.
Why it matters
Some hotels offer discounts or perks for longer stays. Understanding LOS trends can help you negotiate better rates for extended business trips.
TTLY / This Time Last Year
A comparative metric showing how bookings or revenues performed at the same time in the previous year.
Why it matters
Hotels use TTLY data to predict demand and set pricing, which can influence your booking costs.
POR / Per Occupied Room
A calculation of revenue or cost on a per-occupied-room basis.
Why it matters
Hotels use POR to track operational efficiency, which can indirectly impact pricing and service quality.
PAR / Per Available Room
A metric measuring revenue per available room, often used to analyse a hotel’s performance regardless of occupancy levels.
RevPAR / Revenue Per Available Room
RevPAR measures how much revenue a hotel generates per available room, and it applies regardless of whether or not the room is occupied. It’s calculated by multiplying the average daily rate (ADR) by the occupancy rate, or by dividing total room revenue by the number of available rooms.
Why it matters
High RevPAR indicates that a hotel is optimising both its room rates and occupancy. As a traveller, a hotel with a strong RevPAR is likely in demand, and prices may reflect that.
TRevPAR /Total Revenue Per Available Room
This metric expands on RevPAR by including all sources of hotel revenue, such as dining, spa services, and meeting room rentals, divided by the total number of available rooms.
Why it matters
TRevPAR gives a fuller picture of how a hotel maximises its revenue streams. For business travellers booking conferences or team stays, hotels with a solid TRevPAR likely offer comprehensive amenities and experiences.
RevPAG / Revenue Per Available Guest
RevPAG calculates revenue generated per guest, considering spending on rooms, dining, activities, and other services.
Why it matters
A hotel focusing on boosting RevPAG is likely to offer personalised experiences, which can enhance your stay.
RMS / Revenue Management System
A RMS is a technology tool hotels use to analyse data and optimise room pricing based on supply, demand, and booking trends.
Why it matters
Dynamic pricing from an RMS could mean fluctuating rates, so booking early often secures better deals.
OCC% / Occupancy Percentage
This is the percentage of rooms occupied at a given time. It’s calculated by dividing the number of occupied rooms by the total number of rooms.
Why it matters
High occupancy rates often mean limited availability. For business trips, it’s wise to book early at hotels in high-demand areas.
Limited-service hotel
A hotel that does not offer a full-service restaurant. These accommodations might still include perks like complimentary breakfast or beverages.
Why it matters
Limited-service hotels are often budget-friendly options for business travellers who don’t require full dining facilities.
Room types
Hotels offer a variety of room configurations to suit different needs. Here are some common types:
• Junior Suite – A room with a combined living/sitting area and a bedding area, typically without a full partition.
• Standard Room – The most basic room type with essentials like a bed, desk, and bathroom.
• Deluxe Room – Step up from standard, offering additional space, better views, or upgraded amenities.
• Executive Room – Tailored for business travellers, these rooms often include extra workspace and access to executive lounges.
• Suite – Spacious accommodation featuring separate living and sleeping areas, ideal for longer stays or small meetings.
From negotiating rates to choosing the right room type, knowledge is your key to smarter travel decisions. Understanding business travel hotel jargon can help you identify the best options for your business travel needs.
Need help with corporate travel? Contact us to learn more about our hotel booking solutions and Preferred Hotel Programmes.
