Room for Savings: Optimizing Hotel Spend - Carlson

Appendices
Glossary
The following is a list of key terms and
abbreviations used in this document:
Average room rate (ARR): the average of all
room rates paid by a company or companies
over one year
Best available rate (BAR): the lowest room rate
offered by a specific hotelier for each available
room type on any given day
Black-out dates: specific days on which a
negotiated rate does not apply
Chain-wide agreement: a fixed percentage
discount off the BAR that applies at all hotels
belonging to a chain
City cap: a spend limit set by companies for
hotel stays in specific cities
Dynamic pricing: public rates that fluctuate,
even daily, with supply and demand. A dynamic
pricing agreement offers a fixed percentage
discount off the fluctuating rate
Last-room availability: an agreement that
guarantees a company’s travelers will be offered
the negotiated rate even if only one room of the
negotiated type is available, except during blackout
dates if applicable
Negotiated flat rate: a preferential fixed rate
offered to a company that usually applies for one
calendar year
Preferred hotel: a property (independent or
belonging to a chain) with which a company has
negotiated flat rates or a discount
RevPAR: revenue per available room (or room
yield), which is the most important indicator of
hotel performance, taking into account room
rates and occupancy
Serviced appartment: furnished appartment
accommodation offering hotel-style amenities
such as breakfast and dry cleaning.
E-folio: an electronically transmitted, itemized
hotel invoice
Global distribution system (GDS): a worldwide
system used to book travel services, also known
as a computerized reservation system (CRS)
Hotel category: an indication of hotel quality
(e.g., deluxe, first, standard or economy)
Hotel program: a directory of preferred hotels
with which a company has usually negotiated flat
rates or a fixed discount off the public rate