Hotel Revenue, Distribution Channels, and Data Analysis Case Review

A set of flashcards examining hotel revenue management terms, distribution channels, and data analysis interview scenarios.

What is Average Daily Rate (ADR) and how is it calculated?

ADR is the average price paid for a sold hotel room, calculated by dividing total room revenue by the total number of rooms sold.

What is Occupancy Rate in hotel management?

Occupancy Rate is the percentage of total available rooms currently occupied by guests.

What is Revenue Per Available Room (RevPAR) and how is it calculated?

RevPAR is the average revenue generated per available room, calculated by multiplying the occupancy rate by the ADR.

What is Total Revenue Per Available Room (TRevPAR)?

TRevPAR is all revenue generated per available room—including rooms, food, beverages, and spa services—divided by available rooms.

What is Gross Operating Profit Per Available Room (GOPPAR)?

GOPPAR is total gross operating profit divided by available rooms after deducting operating expenses.

What is Best Available Rate (BAR)?

BAR is the lowest publicly available room rate for a date that does not require special qualifications or restrictions.

What is Dynamic Pricing?

Dynamic Pricing is a flexible pricing strategy where room rates change frequently based on real-time market demand, availability, and competitor actions.

What is a Competitive Set (Compset)?

A Competitive Set (Compset) is a group of similar, local competitor hotels that a property uses for benchmarking its performance.

What is Yield Management?

Yield Management is the practice of maximizing revenue by adjusting prices and inventory availability according to shifting consumer demand.

What is an Online Travel Agency (OTA)?

An OTA is a third-party website (like Expedia or Booking.com) that lists hotel rooms and charges a commission on every booking.

What is a Global Distribution System (GDS)?

A GDS is a centralized network connecting travel agents to hotel inventories, rates, and real-time room availability.

What is a Wholesaler in hotel distribution?

Wholesalers are B2B companies that buy room inventory in bulk at a discount and sell it to OTAs or travel agencies.

What is a Metasearch Engine in hotel distribution?

A Metasearch Engine is a search platform (like Google Hotels or TripAdvisor) that aggregates rates from multiple OTAs and direct websites, charging hotels per click.

What are the three direct (owned) distribution channels described in the transcript?

Direct Web (bookings made directly on official website), Direct Voice (phone reservations via in-house staff or call center), and Walk-In (guests who arrive without a prior reservation and book at the front desk).

In the Sodexo revenue opportunity case, what is VDA?

VDA is the contractual discount percentage applied to vendor invoices.

What uncaptured factors caused vendor SLA scores to incorrectly drop into the D or F range in the scorecard analysis?

Dispatches occurring late in the day where client teams approved next-morning arrival (violating standard 4-hour SLAs in reporting) and external 48-hour notice requirements imposed by mall property management companies that were omitted from client SLA reporting.

By what average percentage did vendor performance scores increase after correcting the SLA reporting discrepancies?

Vendor performance scores increased by an average of approximately 35%.

How were vendor performance failures analyzed to resolve the operational issue at Sodexo?

Performance reports were broken down by geographic area rather than using overall vendor scores, revealing that issues were isolated to specific branches experiencing staffing challenges.

What tool was used at Holiday Inn Express & Suites to manage group sales inquiries and RFPs?

MeetingBroker.

How was the supplier incident log process improved in Smartsheet?

Tracking was enhanced to display assignment, progress, solution, and closeout status, and real-time automations were built to alert stakeholders when status changes occurred.