The world of Business-to-Business (B2B) in the hotel industry is brimming with unique terms and jargon that may seem confusing to newcomers. Whether you're a hotelier, a supplier, or just curious about the inner workings of the hotel B2B space, this article aims to demystify these terms by providing simple explanations.
21 Unique Terms in the Hotel B2B Space
1. CRS (Central Reservation System)
2. GDS (Global Distribution System)
3. OTA (Online Travel Agency)
4. ADR (Average Daily Rate)
5. RevPAR (Revenue Per Available Room)
6. PMS (Property Management System)
7. Channel Manager
8. RFP (Request for Proposal)
9. Consortia
10. Wholesaler
11. B2B Rate
12. MICE (Meetings, Incentives, Conferences, and Exhibitions)
13. Room Mapping
14. Hotel Aggregators
15. Hotel Consolidators
16. Rate Parity
17. Merchant of Record
18. Hotel Distributors
19. Bedbanks
20. API Providers
21. Hotel Booking Engine
1. CRS (Central Reservation System)
A Central Reservation System is a computerized system that hotels use to manage their room inventory and rates across various distribution channels like websites, online travel agencies (OTAs), and Global Distribution Systems (GDS).
2. GDS (Global Distribution System)
GDS is a network that enables travel agencies and websites to access real-time information about hotels, flights, and other travel-related services. It helps hotels reach a wider audience by making their rooms available on multiple booking platforms.
3. OTA (Online Travel Agency)
Online Travel Agencies are websites or platforms where travelers can book hotel rooms and other travel services. Popular OTAs include Booking.com, Expedia, and Agoda.
4. ADR (Average Daily Rate)
ADR is a key metric in the hotel industry that calculates the average revenue generated per occupied room in a specific time period. It's a crucial indicator of a hotel's pricing strategy.
5. RevPAR (Revenue Per Available Room)
RevPAR measures a hotel's financial performance by dividing total room revenue by the number of available rooms. It's an essential metric to evaluate a hotel's overall efficiency.
6. PMS (Property Management System)
A Property Management System is software used by hotels to manage day-to-day operations like reservations, check-ins, check-outs, and billing.
7. Channel Manager
A Channel Manager is a tool that helps hotels distribute their room inventory and rates consistently across multiple online booking channels, ensuring that availability and pricing are up-to-date.
8. RFP (Request for Proposal)
In the B2B hotel space, a Request for Proposal is a formal document that a hotel sends to potential suppliers or partners, detailing their requirements and asking for quotes or proposals for specific services or products.
9. Consortia
Consortia are groups of travel agencies or corporations that negotiate special rates and benefits with hotel chains for their clients, often resulting in mutually beneficial partnerships.
10. Wholesaler
Wholesalers are intermediaries that purchase hotel rooms in bulk and sell them to travel agencies, tour operators, or other buyers at a discounted rate. This can help hotels fill rooms during low-demand periods.
11. B2B Rate
A B2B Rate is a special rate offered by hotels exclusively to their B2B partners, such as travel agencies or corporate clients, typically at a negotiated discount.
12. MICE (Meetings, Incentives, Conferences, and Exhibitions)
MICE refers to the segment of the hotel industry that caters to business events, such as meetings, conferences, incentives, and exhibitions. Hotels often have specialized teams to manage MICE bookings.
13. Room Mapping
Room Mapping is the process of associating specific room types and categories of one hotel with their corresponding counterparts on various online distribution channels. It ensures that the descriptions, amenities, and pricing of rooms are consistent across all platforms, reducing confusion for guests.
14. Hotel Aggregators
Hotel Aggregators are platforms or companies that compile information from multiple sources, such as hotels, wholesalers, and online travel agencies, to provide a comprehensive list of available hotel options to consumers and travel agents.
15. Hotel Consolidators
Hotel Consolidators are intermediaries that purchase rooms in bulk from hotels and then sell them to smaller travel agencies or tour operators at discounted rates. They play a vital role in distributing hotel inventory to various channels.
16. Rate Parity
Rate Parity, also known as rate consistency, refers to the practice of maintaining consistent pricing for hotel rooms across all distribution channels. Hotels strive to avoid rate disparities to provide a fair and uniform experience to guests.
17. Merchant of Record
The Merchant of Record is the entity responsible for processing payments and handling financial transactions for hotel bookings. It's often the party that appears on a guest's billing statement and assumes the financial risk associated with chargebacks and refunds.
18. Hotel Distributors
Hotel Distributors are companies or platforms that distribute hotel room inventory to various sales channels, such as travel agencies, online booking websites, and tour operators. They help hotels reach a broader audience and maximize occupancy.
19. Bedbanks
Bedbanks are specialized B2B platforms that aggregate and distribute hotel room inventory to various travel industry partners, such as travel agencies, tour operators, and online travel companies. They play a crucial role in connecting hotels with a wide range of distributors.
20. API Provider
An API Provider in the hotel B2B space is a company or service that offers Application Programming Interfaces, which are sets of rules and protocols that allow different software systems to communicate with each other. In the hotel industry, APIs enable seamless integration between a hotel's systems and various distribution partners for real-time data sharing and booking functionality.
21. Hotel Booking Engine
A Hotel Booking Engine is a software application that enables guests to book hotel rooms directly through the hotel's website. It allows guests to check availability, view room details, and make reservations online, streamlining the booking process and increasing direct bookings for hotels.
Conclusion
Navigating the hotel B2B space becomes much easier when you understand the unique terminology used within the industry. From CRS to Hotel Booking Engine, these terms play essential roles in the daily operations and partnerships that keep the hotel business thriving. Whether you're a hotel professional or someone interested in the field, this glossary should help clarify the key concepts in the B2B hotel space.