Acquisition cost – This term may apply to either a customer or an organization. To a customer, acquisition cost may include intrinsic costs, such as price, and extrinsic costs such as the time it takes to make the purchase and the cost of gasoline it requires to get to and from the store. To an organization, acquisition cost means the cost of acquiring the customer, including the costs of marketing, the costs of taking reservations and the costs of actually serving the guest.
Action plan – A calendar used for planning and assigning tasks to be completed over the course of a year.
Airline Reservation System – Also known as an ARS. An automated system for taking airline reservations.
Ancillary purchase – A supplementary or additional purchase made in a series of transactions.
Antitrust law – Laws designed to prevent restraints on trade. These laws were enacted in the late 1800s to protect both consumers and business. They prohibit behavior that is unfair and uncompetitive in nature. They also prohibit any actions that violate society’s standards of ethical behavior.
Auction site – A website on which the price of a product or service is determined by the winning bid. Examples are Priceline and Luxury Link.
Average channel contribution – value determined by dividing the total revenue generated by the channel by the total number of transaction it completed.
Average daily rate – Also know as ADR. Calculated by dividing rooms revenue by the number of room sold.
B2B – Business-to-business e-commerce.
B2C – Business-to-consumer e-commerce.
Baby boomers – A generational marketing term. Born between the years of 1946 and 1964, the baby boomers are not only the largest generational segment at nearly 78 million members, they are also the most powerful in terms of both wealth and propensity to spend.
Best available rate – The lowest rate per room available to the general public on a given night.
Best-rate guarantee program – Program that guarantees that the customer will receive the best rate from the organization. If a customer can find a better price than the one posted on the organization’s website, the organization will match that price.
Booking pace – Refers to the pattern and tempo ( rate) of receipt and acceptance of advanced reservations.
Brand equity – The value generated by a brand.
Branding – Placing an identifying mark or logo on a product produced by s specific organization or associating that brand with a service performed by that organization.
Brick and mortar store – The local building that houses a retail establishment.
Bundling – Combining products and services to create a package.
C2C – Consumer-to-consumer e-commerce.
Cannibalization – The concept of a customer leaving a higher-rated market segment to jump over a fence and gobble up lower-priced products or services offered by the same provider to other lower-rated market segments.
Capacity – The amount of space that can be filled.
Central Reservation System – Also known as CRS. An automated reservation system for booking several travel components, including air, car and hotel room.
Central Reservation office – Also know as CRO. An automated reservation system that take reservations for all properties within an organization.
Ceteris paribus – Economic term meaning all things being equal.
Channel – Refers to the source of the booking.
Channel contribution – The revenue generated from a single transaction.
Channel contribution percentage – A percentage calculated by dividing the channel’s total revenue by the total revenue produced by all channels.
Channel production – The number of transactions generated by channel.
Channel of distribution – Avenues that have developed to bring the buyer and seller together. These channels act as distribution outlets through which the sellers offer their products and services for sale to their customers. Channels may be electronic or non electronic. Whereas the sources of a reservation used to be referred to as the source of business, today all sources of business may be tracked via both market segment and the channel that generated the business.
Circular – Moving in a circle. Once a circular process is complete, it simply begins once again.
Closed or closed out – Inventory is no longer available for sale.
Closed to arrival – Means that the customer cannot arrive on that date no mater their intended length of stay.
Commission – The percentage or flat fee above the selling price that goes to an intermediary that must also be added to the cost of distribution. Also known as a load.
Competitive advantage – That component of an organization’s operation in which it excels or maintains an advantage over its competitors.
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