Decoding Hotel Technology Jargon: A Comprehensive Guide

In the ever-evolving landscape of the hospitality industry, technology plays a pivotal role in enhancing guest experiences and streamlining hotel operations. However, navigating through the myriad of technical terms and jargon can be a daunting task.

Our Hotel Technology Jargon Buster is here to unravel the mysteries behind the buzzwords and acronyms commonly used in the world of hotel tech.

Channel Manager

Software that enables hotels to update room availability and rates in real-time across multiple online distribution channels, ensuring consistency and avoiding overbooking.

CRM (Customer Relationship Management)

Strategies, technologies, and practices that hotels use to manage and analyze customer interactions throughout the guest lifecycle, with the goal of improving customer satisfaction and loyalty.

CRMS (Customer Relationship Management System)

Definition: Software that helps hotels manage and analyze customer interactions and data throughout the guest lifecycle to improve customer relationships and drive loyalty.

CRS (Central Reservation System)

A system that allows hotels to manage and distribute room inventory and rates across various distribution channels, including online travel agencies (OTAs) and the hotel’s website.

IBE (Internet Booking Engine)

A tool integrated into a hotel’s website to facilitate direct online bookings by guests.

IoT (Internet of Things)

The interconnection of devices (such as thermostats, lighting, and sensors) embedded with software, enabling them to collect and exchange data, enhancing guest comfort and operational efficiency.

Kitchen Display System (KDS)

KDS streamlines communication between the kitchen and the front of the house, improving order accuracy and kitchen efficiency, enabling operators to do away with paper tickets.

Mobile Room Keys

Mobile apps that allow guests to use their smartphones as room keys, streamlining the check-in and check-out process.

OTA (Online Travel Agency)

Websites and platforms that allow users to book hotel rooms online. Examples include Booking.com, Expedia, and Hotels.com.

PMS (Property Management System)

A centralised software platform that helps hotels manage their daily operations, including reservations, check-ins, check-outs, billing, and room assignments.

POS (Point of Sale) System

Systems that handle transactions between the hotel and guests, including food and beverage purchases, spa services, and other on-site expenses.

Smart Room Technology

Integrating IoT devices and automation to enhance in-room experiences, such as smart lighting, temperature control, and entertainment systems. Immerse guests in a tech-savvy environment with cutting-edge smart room technology.

Table Management System

This system helps hotel restaurants manage reservations, table assignments, and waitlists, optimise seating arrangements and reduce guest waiting times with an intuitive table management system.

Other specialised terms and phrases utilised by professionals in the hotel industry to evaluate hotel performance and effectiveness can sometimes be bewildering. These often revolve around key performance indicators (KPIs) which serve as benchmarks for success. Some of the most common include:

ADR (Average Daily Rate)

The average rate charged per occupied room in a hotel over a specific period, calculated by dividing total room revenue by the total number of occupied rooms.

CPOR (Cost per Occupied Room)

Used in the hotel industry to evaluate operational efficiency and cost management, CPOR represents the total operating costs associated with each room that is occupied by a guest during a specific period.

GOPPAR (Gross Operating Profit per Available Room)

performance metric that evaluates a hotel’s profitability by measuring the gross operating profit generated per available room, calculated by subtracting total operating expenses from total revenue and dividing by the total number of available rooms.

Occupancy Rate

The percentage of available rooms that are occupied during a specific period, calculated by dividing the number of occupied rooms by the total number of available rooms and multiplying by 100.

RevPAR (Revenue per Available Room)

RevPAR is calculated by dividing the total revenue generated by room sales by the total number of available rooms in a given period. It is a crucial indicator of a hotel’s revenue-generating efficiency and helps managers assess pricing strategies, demand trends, and overall performance in comparison to competitors.

Armed with this Hotel Technology Jargon Buster, you’re now equipped to navigate the complexities of the technological landscape within the hospitality industry. As technology continues to advance, staying informed about these terms is crucial for hoteliers looking to provide top-notch guest experiences and optimise their operations.

Embrace the tech revolution and make your hotel a beacon of innovation in the competitive world of hospitality!