> For the complete documentation index, see [llms.txt](https://revhero.gitbook.io/revhero-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://revhero.gitbook.io/revhero-docs/getting-started/key-concepts.md). # Key concepts The 15 terms worth learning before you start, each with a formula and a worked example. Revhero and RoomPulse use standard hotel revenue management vocabulary, and they use the same words for the same things. Learn a term once and it means the same on both sides of the package. If you have worked in revenue management before, none of these terms will surprise you. If you are new, learn these 15. You will then understand almost everything the products show you. The terms fall into two groups, and that grouping is also how the work splits. | Group | Terms | Where you mostly meet them | | ------------------------------------- | ------------------------------------------------------------ | -------------------------- | | **How your own hotel is performing** | ADR, RevPAR, occupancy, OTB, pickup, STLY, LY, pace, segment | Revhero | | **How your price sits in the market** | comp set, market median, rate parity, BAR | RoomPulse | **LOS** and **yielding** belong to both. You read the market, then you act on the rate. {% hint style="info" %} **This page and the Glossary do different jobs.** This page teaches the 15 terms you need to use Revhero, with a formula and a worked example for each. The [Glossary](/revhero-docs/support/glossary.md) is the full A–Z of hotel and revenue management terms — hundreds of them — for looking one up when you meet it. {% endhint %} ![Rooms sold, rooms available and room revenue build occupancy, ADR and RevPAR](https://272652298-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnzEa7YGji6t92Mfc0ZJ1%2Fuploads%2Fgit-blob-86a1ea4546f236a3a607d36d80727f20f7c2e0b3%2Fhow-the-core-measures-connect.svg?alt=media) *Three things you count build the three measures you live by — and RevPAR carries both of the others.* ## ADR — Average Daily Rate ADR is the average rate paid per occupied room per night. It counts room revenue only. **Room revenue ÷ rooms sold** You sold 40 rooms last night. You took €4,800 in room revenue. ADR = €4,800 ÷ 40 = **€120**. Where you see it: [Dashboard](/revhero-docs/your-hotels-performance/dashboard/adr.md), [Daily Performance](/revhero-docs/your-hotels-performance/daily-performance.md), [Yielding Board](/revhero-docs/setting-your-rates/yielding-board.md). ## RevPAR — Revenue Per Available Room RevPAR is the most-watched measure in revenue management. It carries both rate and occupancy in 1 number. You can therefore compare 2 hotels fairly, even when they are priced very differently. **Room revenue ÷ rooms available**, which is the same as **ADR × occupancy** Same night, 40 of 50 rooms sold, €4,800 revenue. RevPAR = €4,800 ÷ 50 = **€96**. Or €120 × 80% = €96. Where you see it: [Dashboard](/revhero-docs/your-hotels-performance/dashboard/revpar.md), [Budget & Target](/revhero-docs/your-hotels-performance/budget-target.md). ## Occupancy Occupancy is the share of your available rooms that you sold. **Rooms sold ÷ rooms available × 100** 40 of 50 rooms sold = **80% occupancy**. Occupancy is often shortened to *Occ*. Where you see it: [Dashboard](/revhero-docs/your-hotels-performance/dashboard/occupancy.md) and every reporting screen. ## OTB — On The Books OTB is the confirmed bookings you hold for a future date. It counts confirmed bookings only. It does not count tentative bookings, and it does not count cancelled bookings. For 15 August you hold 23 confirmed bookings right now. OTB rooms for 15 August = **23**. Where you see it: every forward-looking screen. ## Pickup Pickup is how much your holding for a stay date moved over a window of time. Anything cancelled in that window comes off it, so a date can pick up a negative number. Yesterday you held 18 rooms for 15 August. Today you hold 23. Pickup for 15 August over the last 24 hours = **5 rooms**. Had 2 of those cancelled, it would read **3**. Revhero shows pickup over several windows. You can therefore tell whether momentum is building or slowing. See [Pickup](/revhero-docs/your-hotels-performance/dashboard/pickup.md). ## STLY — Same Time Last Year STLY is your position for a date as it stood at the same point in last year's booking curve. It is not last year's finished result. Today is 4 June. The arrival date is 15 August. STLY answers 1 question: *how many rooms did we hold for 15 August on 4 June last year?* STLY is the only fair way to compare booking pace. Where you see it: the comparison period on the [Dashboard](/revhero-docs/your-hotels-performance/dashboard.md), and the comparison columns on [Daily Performance](/revhero-docs/your-hotels-performance/daily-performance.md). ## LY — Last Year LY is last year's **final** actual result for the same calendar date. For 15 August last year, LY ADR is the ADR you actually achieved. STLY ADR is the ADR you held for that date 1 year ago today. Use LY to compare finished months. Use STLY to compare pace. ## Pace Pace is how quickly bookings are building for a future date. It is usually shown against STLY. You hold 23 rooms for 15 August. STLY you held 28. Your pace is **−5 rooms, −18% against STLY**. See [Booking Pace](/revhero-docs/your-hotels-performance/dashboard/booking-pace.md). ## BAR — Best Available Rate BAR is the lowest rate you offer for a date that the public can book without a restriction. It is your headline rate. Nearly every other rate you sell is derived from it — corporate, package and member rates included. For 15 August your BAR is €145. Your corporate rate might be 10% below it. A weekend package might be 15% below it, with breakfast added. BAR is the number you set and send from the [Yielding Board](/revhero-docs/setting-your-rates/yielding-board.md). ## LOS — Length of Stay LOS is the number of nights in 1 booking. It is used in 2 ways: as a measure (average LOS) and as a restriction (minimum LOS, maximum LOS). A booking for 14–17 August has an LOS of 3 nights. Set a minimum LOS of 2 on 14 August, and a 1-night stay arriving on that day is refused. You set length-of-stay restrictions on the [Yielding Board](/revhero-docs/setting-your-rates/yielding-board.md). ## Comp set — competitor set Your comp set is the small group of hotels you have named as your direct competitors. RoomPulse reads their public rates and places your rate among them. A 4-star city hotel might pick 2 similar 4-star hotels, 1 boutique hotel with a similar guest profile, and 1 upscale hotel as a ceiling. You decide who is in it. You build the comp set once, in RoomPulse, and both products then show the same market picture. Revhero reads the same list for [Competitor Rate Analysis](/revhero-docs/your-hotels-performance/dashboard/competitor-rate-analysis.md) on the Dashboard. See [Competitors & competitor groups](/revhero-docs/roompulse/rate-settings/competitors.md). ### Market median The **Median Compset Rate** is the median rate across your comp set for a stay date. Half of your competitors are above it and half are below it. It is the single number you compare your own rate against. Your comp set is priced at €130, €145, €150, €160 and €190 for 15 August. The median is **€150**. A rate of €135 puts you below the market for that date. See [Market Rates](/revhero-docs/roompulse/market-rates.md). ## Segment A segment is the category a booking came from — direct, a particular OTA, corporate or wholesale. You use segments to read your business mix. See [Business Mix](/revhero-docs/your-hotels-performance/dashboard/business-mix.md) and [Segmentation mapping](/revhero-docs/your-hotels-setup/settings/segmentation-mapping.md). ## 3 more terms worth knowing ### Yielding Yielding is the daily work of adjusting rates and restrictions to make the most of demand. "I am yielding August" means "I am reviewing and adjusting the August rates". You read the market in RoomPulse, then do this work on the [Yielding Board](/revhero-docs/setting-your-rates/yielding-board.md) in Revhero. ### Rate parity Rate parity means selling the same rate for the same room and the same date on every channel. Most OTA contracts require it. RoomPulse is where you check it: see [Parity](/revhero-docs/roompulse/parity.md) for your own channels, and [MetaRadar](/revhero-docs/roompulse/metaradar.md) for the metasearch channels. ### Booking curve The booking curve is the shape of how bookings build towards an arrival date. A resort usually fills earlier than a city hotel. A pickup number only means something when you know your own curve. ## Next * [The 15-minute daily routine](/revhero-docs/getting-started/daily-routine.md) — put these terms to work. * [Using RoomPulse day to day](/revhero-docs/roompulse/day-to-day.md) — the market terms in daily use. * [Glossary](/revhero-docs/support/glossary.md) — the full A–Z of hotel and revenue management terms. *** **Was this page helpful?** If something here is wrong, unclear or missing, email [support@revhero.com](mailto:support@revhero.com?subject=Manual%20feedback%20%5Ben%5D%20getting-started%2Fkey-concepts.md) and quote this page: `getting-started/key-concepts.md`. Say what you expected to find — that is the part we can fix.