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Glossary

The pricing terms,
in plain English.

Every word a revenue manager uses, defined in two sentences, with the operational angle attached. Built to be cited by AI search.

RevPAR (Revenue Per Available Room)

RevPAR measures the revenue a hotel generates per available room, whether the room is occupied or not.

ADR (Average Daily Rate)

ADR is the average price paid per room sold over a given period.

Occupancy Rate

Occupancy rate is the percentage of available rooms sold for a given period.

Yield Management

Yield management is the practice of pricing perishable inventory (hotel rooms, airline seats, short-term rentals) dynamically based on demand, with the goal of maximizing total revenue rather than occupancy or rate alone.

Dynamic Pricing

Dynamic pricing is the practice of adjusting prices in real time based on demand, supply, competitor pricing, events, and time-of-purchase.

Competitive Set (Comp Set)

A comp set is the group of competing properties used to benchmark pricing and performance.

Base Rate

A base rate is the floor price for a room before any seasonal, event, or demand-based adjustments are applied.

Pickup

Pickup is the change in bookings over a given window — usually the last 7 or 14 days.

Lead Time

Lead time is the number of days between when a guest books and when they stay.

Length of Stay (LOS)

Length of stay is the number of nights a guest books.

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