Hotel Revenue Management Glossary

The operational and design rules a franchise or chain enforces across affiliated properties.

If you're a Hyatt Place, Hampton, or Marriott property, brand standards govern everything from amenity kits to rate structure to channel restrictions. They protect the brand promise but constrain pricing flexibility. Independent hotels skip them; flagged hotels live with them.

The percentage breakdown of bookings across each distribution channel - direct, OTA, GDS, wholesaler, group.

Channel mix is the single biggest lever on net ADR. A 70/30 direct-to-OTA mix can be more profitable than a 90/10 mix at a higher gross ADR - depending on commission structure and acquisition cost. Track net ADR by channel monthly. The leak is rarely where you think.

A reservation made directly through the hotel's website, phone, or walk-in - skipping OTA commission.

Direct bookings carry zero distribution cost beyond payment processing - making net ADR 15-25% higher than OTA bookings at the same gross rate. The catch: you have to earn them. A direct booking strategy stacks loyalty perks, member rates, AdWords brand defense, and metasearch parity to win the click.

A set of rooms reserved for a single group event - wedding, conference, sports team - under one contract.

Group blocks include a rate, cutoff date, attrition clause, wash factor, and rooming list. Most groups don't fully pick up - wash of 10-25% is normal. Build your forecast around expected pickup, not contracted block. And always run displacement before signing.

A third-party booking platform - Booking.com, Expedia, Agoda - that resells hotel inventory for a commission.

OTAs charge 15-25% commission and dominate hotel demand discovery. Loved for the volume, hated for the margin. The right OTA strategy treats them as a billboard for first-time guests, then moves repeat business to direct via loyalty, member rates, and remarketing. Avoid going dark - OTAs reward inventory; punish silence.

A bonus commission paid to a travel agent or OTA for hitting agreed booking thresholds, on top of the base rate.

Override commissions are the lever wholesalers and TMC (travel management companies) use to push volume. Common in corporate and group business. Always model overrides into your net ADR - a 10% base + 5% override = effectively 15% commission, which can flip a profitable segment into a loss leader.