> 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/support/glossary/o.md). # O Hotel and revenue management terms beginning with O. ## Occupancy (OCC) The share of your rooms that are sold. It is the simplest measure of how full you are. **Occupancy = rooms sold ÷ rooms available × 100** If you sell 80 of 100 rooms, your occupancy is 80%. Over a period, occupancy is measured in room nights. One room sold for one night is one room night. A hotel with 100 rooms has 3,100 available room nights in a 31-day month. You can also read occupancy for one room type. Overall occupancy of 79% can hide suites sitting at 50%, and that changes what you promote. ### The occupancy variants | Variant | What it means | | --------------- | ------------------------------------------------------------------------------------------- | | **OCC OTB** | The occupancy you already hold for a future date, from confirmed bookings | | **OCC BDGT** | The occupancy you budgeted for. The monthly budget is spread across the days of the month | | **OCC FCST** | The occupancy you are expected to reach: forecast room nights ÷ available room nights × 100 | | **OCC LY** | The occupancy you finished with on the same date last year | | **OCC STLY** | The occupancy you held for that date at the same point in last year's booking curve | | **OCC vs BDGT** | OCC OTB against the budgeted occupancy, as a percentage difference | | **OCC vs FCST** | OCC OTB minus forecast occupancy, in percentage points | | **OCC vs LY** | OCC OTB against last year's final occupancy, as a percentage difference | | **OCC vs STLY** | OCC OTB against the occupancy you held at the same point last year | **OCC vs BDGT = (OCC OTB − budgeted occupancy) ÷ budgeted occupancy × 100** You hold 75% and you budgeted 60%. The variance is (75 − 60) ÷ 60 × 100 = +25%, shown in green. A shortfall is shown in red, and is never displayed below −100%. OCC vs FCST works differently. It is a subtraction, not a percentage difference. If you hold 85% against a forecast of 83%, you are 2 percentage points above forecast. **See also:** [ADR](/revhero-docs/support/glossary/a.md) · [RevPAR](/revhero-docs/support/glossary/r.md) · [Room nights](/revhero-docs/support/glossary/r.md) · [On the books](#on-the-books-otb) · [Pickup](/revhero-docs/support/glossary/p.md#pickup) *** ## On the books (OTB) The bookings you already hold for a future date. They are confirmed and recorded in your system, so they are known demand rather than expected demand. Today is 7 April. For the stay date 20 April you hold 65 confirmed room nights. Your OTB is 65. OTB is the starting point for every forecast and every rate decision. Read against [STLY](/revhero-docs/support/glossary/s.md), it tells you whether you are ahead of or behind last year. **See also:** [Occupancy (OCC)](#occupancy-occ) · [Pickup](/revhero-docs/support/glossary/p.md#pickup) · [STLY](/revhero-docs/support/glossary/s.md) · [Forecast](/revhero-docs/support/glossary/f.md) *** ## Online booking engine (OBE) The booking tool on your own website, where a guest books a room directly from you. It shows live availability and rates, and takes the payment. A booking made through your own engine carries no OTA commission. Building that share of your business is the main reason hotels invest in the engine. **See also:** [OTA](#ota-online-travel-agency) · [Commission](/revhero-docs/support/glossary/c.md) · [Channel manager](/revhero-docs/support/glossary/c.md) *** ## Online demand Online demand measures how much interest there is online in your hotel, and in your market. It is interest, not business: people are looking, and they have not booked yet. That is why it is useful. Demand moves before bookings move, so a change here is an early warning or an early opportunity. **It is an index, not a count.** The figure is a relative measure of interest. It does not count searches and it does not count bookings. Read it in 2 ways only: 1 date against another date, and this year against last year. ### The 2 things a demand figure is measured on | Choice | Options | | ---------------- | ----------------------------------------------------------------------------------------------------- | | **Whose demand** | **Hotel** — interest in your property. **Market** — interest across the hotels in your market | | **Which date** | **Stay dates** — the dates people want to stay. **Search dates** — the dates people were searching on | One search creates interest in several stay dates. Someone looking at 10–14 May creates demand on 4 stay dates and on 1 search date. The 2 views therefore do not add up to the same total. Choose one and stay with it while you read a trend. Each figure is drawn against the same figure at the same time last year, so you can see whether interest is growing or falling. **Change against last year = (this year − STLY) ÷ STLY × 100** An index of 237 this year against 137 at the same point last year is a change of (237 − 137) ÷ 137 × 100 = +73%. ### Share of demand Share of demand is your hotel's demand as a share of your market's demand. It answers a different question from growth: not "is interest rising", but "am I getting my share of it". **Share of demand = hotel demand ÷ market demand × 100** Your hotel's index is 6,000 and the market's is 60,000. Your share of demand is 10%. Compare it with the same figure a year ago. A share that falls while the market grows means the market is getting bigger without you. **How to read the 2 together.** Your demand rising with the market is normal. Your demand flat while the market rises means you are losing visibility. Your demand rising while bookings do not follow means people are looking at you and choosing somebody else. **See also:** [Online market share](#online-market-share) · [OTA](#ota-online-travel-agency) · [STLY](/revhero-docs/support/glossary/s.md) · [Capture rate](/revhero-docs/support/glossary/c.md) *** ## Online market share The share of the market's online activity that your hotel takes. The figure compared can be searches, booking engine visits or bookings. **Online market share = your hotel's figure ÷ the market total × 100** Your booking engine receives 1,000 visits and every hotel in the market together receives 10,000. Your share is 10%. **See also:** [Online demand](#online-demand) · [Fair market share](/revhero-docs/support/glossary/f.md) *** ## Opaque sites Channels that sell a room without showing the hotel's name until after payment. The guest sees the destination, the star rating and the facilities, and nothing else. Hotels use them to sell unsold rooms at a deep discount without publishing that rate. The bookings are normally non-refundable and cannot be changed. **See also:** [OTA](#ota-online-travel-agency) · [Rate parity](/revhero-docs/support/glossary/r.md) · [Fenced rate](/revhero-docs/support/glossary/f.md) *** ## Open pricing A pricing approach where you price each segment, channel and date on its own. You are not moving one fixed rate structure up and down for everyone. Open pricing lets you discount a weak Tuesday for one segment while holding the rate for the rest. It responds to demand faster than a fixed rate grid. **See also:** [Rate fences](/revhero-docs/support/glossary/r.md) · [Segmentation](/revhero-docs/support/glossary/s.md) · [Rate parity](/revhero-docs/support/glossary/r.md) *** ## Operational period The dates your property is open and taking guests. For a seasonal hotel this changes from one year to the next. The operational period sets how many rooms you have to sell. Change it and you change available room nights, and with them occupancy, RevPAR and total revenue. A seaside hotel opened from May to October one year, then from April to October the next. That adds 30 nights of available rooms to the year. Check both operational periods before you compare two years. Without that, a year-on-year figure can be misleading. **See also:** [Available room nights](/revhero-docs/support/glossary/a.md) · [Occupancy (OCC)](#occupancy-occ) · [RevPAR](/revhero-docs/support/glossary/r.md) · [Seasonality](/revhero-docs/support/glossary/s.md) *** ## OTA (Online Travel Agency) A website that sells your rooms to guests and charges you a commission on each booking. Booking.com, Expedia, Agoda and Trip.com are among the largest. OTAs bring volume and visibility, at a commission that is normally between 15% and 25% of the booking value. How much of your business they carry is a strategic question, not only a cost one. **See also:** [Commission](/revhero-docs/support/glossary/c.md) · [Channel manager](/revhero-docs/support/glossary/c.md) · [Business mix](/revhero-docs/support/glossary/b.md) · [Online booking engine](#online-booking-engine-obe) *** ## Overbooking Accepting more bookings than you have rooms, because you expect some guests to cancel or not arrive. **Overbooking level = bookings accepted − rooms you have** A 100-room hotel expects 5% of guests not to arrive, so it accepts 105 bookings. If 100 guests arrive, every one of them has a room. If all 105 arrive, 5 guests must be moved to another hotel. Set the level from your own history of no-shows, cancellations and early departures. It should differ by day of week and by segment. Moving a guest to another hotel is expensive and damages your reputation. Overbook only as far as your own data supports, and agree in advance what you will do if too many guests arrive. **See also:** [No-show](/revhero-docs/support/glossary/n.md) · [No-show rate](/revhero-docs/support/glossary/n.md) · [Cancellation rate](/revhero-docs/support/glossary/c.md) · [Occupancy (OCC)](#occupancy-occ) *** **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%20support%2Fglossary%2Fo.md) and quote this page: `support/glossary/o.md`. Say what you expected to find — that is the part we can fix.