> 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/r.md).

# R

Hotel and revenue management terms beginning with R.

## Rack rate

The rack rate is your standard published rate for a room type, before any discount, promotion or negotiated rate. It is the highest rate you would charge.

Few guests pay it. Its job is to set the ceiling and to act as the base for discounts, as in "20% off rack rate".

**See also:** [BAR](/revhero-docs/support/glossary/b.md) · [Rate plan](#rate-plan) · [Revenue yield](#revenue-yield)

***

## Rate fences

Rate fences are the conditions a guest must meet to book a cheaper rate. They let you sell a low rate to price-sensitive guests without losing the guests who would have paid more.

Common fences:

| Fence                | Condition                                           |
| -------------------- | --------------------------------------------------- |
| **Advance purchase** | The guest must book 21 or more days before arrival  |
| **Non-refundable**   | The guest cannot cancel                             |
| **Member only**      | The guest must belong to your loyalty programme     |
| **Minimum stay**     | The guest must book 3 nights or more                |
| **Corporate**        | The guest must book under a negotiated company rate |

**See also:** [Fenced rate](/revhero-docs/support/glossary/f.md) · [Non-refundable rate](/revhero-docs/support/glossary/n.md) · [Rate plan](#rate-plan) · [Segmentation](/revhero-docs/support/glossary/s.md)

***

## Rate integrity

Rate integrity means keeping your pricing consistent and defensible across every channel and every period. Rates reflect real value and are not damaged by constant discounting.

Frequent deep discounts teach guests to wait for a deal. Over time that lowers your ADR and your brand value.

**See also:** [ADR](/revhero-docs/support/glossary/a.md) · [Rate parity](#rate-parity) · [Revenue yield](#revenue-yield)

***

## Rate parity

Rate parity means showing the same rate for the same room, the same date and the same conditions on every public channel. Guests then see one price wherever they search.

**Example.** You sell a Double Room on 20 April at €130 on your own website. To hold parity, the same room must also show €130 on Booking.com, on Expedia and on any other public channel.

Parity protects guest trust and avoids conflict with your channels. Some countries have relaxed parity rules, so you may be allowed to sell lower on your own website.

**See also:** [Best Rate Guarantee](/revhero-docs/support/glossary/b.md) · [Channel manager](/revhero-docs/support/glossary/c.md) · [Direct booking](/revhero-docs/support/glossary/d.md) · [Distribution channel](/revhero-docs/support/glossary/d.md) · [OTA](/revhero-docs/support/glossary/o.md)

***

## Rate plan

A rate plan is a named price setup for a room type. It defines the rate, what is included, the cancellation terms and the booking conditions. One room type can have several rate plans.

Some systems call a rate plan a **rate code**, and give it a short name such as `CORP10` for a corporate rate with a 10% discount, or `ADV21` for an advance purchase rate.

**Example.** A Double Room may have these rate plans:

| Rate plan           | What it is                                             |
| ------------------- | ------------------------------------------------------ |
| **BAR**             | Best Available Rate — flexible cancellation, room only |
| **Non-Refundable**  | 10% below BAR, no cancellation                         |
| **Bed & Breakfast** | BAR plus €20 per person, breakfast included            |
| **Half Board**      | BAR plus €45 per person, breakfast and dinner included |

Rate plans let you sell at different price points to different guests without creating a new room type for each one.

**See also:** [BAR](/revhero-docs/support/glossary/b.md) · [Board type](/revhero-docs/support/glossary/b.md) · [Derived rate](/revhero-docs/support/glossary/d.md) · [Rate fences](#rate-fences) · [Room type](#room-type) · [Supplement](/revhero-docs/support/glossary/s.md)

***

## Rate shock

Rate shock is what a guest feels when your rate is far higher or far lower than they expected. It can stop the booking and damage trust.

Large jumps between one date and the next are the usual cause. A common defence is to limit how far a rate may move from one day to the next.

**See also:** [Dynamic pricing](/revhero-docs/support/glossary/d.md) · [Rate integrity](#rate-integrity)

***

## Rate shopping

Reading the public prices your competitors are selling, so you can compare them with your own.

RoomPulse is the rate shopping tool inside Revhero. It reads competitor rates, places your own rate next to theirs, watches your own channels for a price below yours, and tells you when the market changes.

**See also:** [Competitive Set (Comp Set)](/revhero-docs/support/glossary/c.md) · [Market Rates](/revhero-docs/support/glossary/m.md) · [Median Compset Rate](/revhero-docs/support/glossary/m.md) · [RoomPulse](#roompulse) · [RoomPulse overview](/revhero-docs/roompulse/roompulse.md)

***

## Regret

A regret is a guest who could have booked, because you had rooms open, but chose not to. The reason is usually the rate, a policy or a preference.

A regret is not a denial. A denial is a guest you had to refuse because you had nothing to sell. Regrets tell you about price sensitivity.

**See also:** [Denial](/revhero-docs/support/glossary/d.md) · [Turnaway](/revhero-docs/support/glossary/t.md) · [Unconstrained demand](/revhero-docs/support/glossary/u.md)

***

## Representation company

A representation company sells, markets and distributes on behalf of independent hotels and small groups. It gives them access to markets they could not reach alone.

What it usually provides:

* GDS connectivity and a chain code
* Corporate and consortia RFP handling
* Sales representation in key source markets
* A place at trade shows and roadshows

Preferred Hotels & Resorts, Small Luxury Hotels of the World and Leading Hotels of the World are well-known examples.

**See also:** [Chain code](/revhero-docs/support/glossary/c.md) · [Consortia](/revhero-docs/support/glossary/c.md) · [GDS](/revhero-docs/support/glossary/g.md) · [Request for Proposal (RFP)](#request-for-proposal-rfp)

***

## Request for Proposal (RFP)

An RFP is a formal request from a company, travel manager or event planner. It asks you for rates, availability and services for corporate stays, groups or events.

It starts a structured negotiation, usually for a full year of business. RFPs often also ask about sustainability, safety, amenities and added value.

**Example.** A large company sends an RFP to hotels in one city for 200 room nights a year, at a negotiated corporate rate with flexible cancellation.

**See also:** [Consortia](/revhero-docs/support/glossary/c.md) · [Group booking](/revhero-docs/support/glossary/g.md) · [MICE](/revhero-docs/support/glossary/m.md) · [Negotiated rate](/revhero-docs/support/glossary/n.md)

***

## Resort hotel

A resort hotel is a leisure property with its own recreation and full-service facilities, usually in a holiday destination. Guests can relax, eat and take part in activities without leaving the property.

Resorts are shaped by seasons and school holidays. They often price by length of stay or in packages, and they earn a large part of their income outside the room.

**See also:** [Ancillary revenue](/revhero-docs/support/glossary/a.md) · [Seasonality](/revhero-docs/support/glossary/s.md) · [Shoulder season](/revhero-docs/support/glossary/s.md) · [TRevPAR](/revhero-docs/support/glossary/t.md)

***

## Revenue (REV)

Revenue is the total income you earn from what you sell. In a hotel it covers room sales, food and beverage, spa, parking and other extra income.

**Room revenue = ADR × rooms sold**

**Example.** You sell 100 rooms at an ADR of €120 and earn €5,000 from food, drink and extras. Total revenue = (100 × €120) + €5,000 = **€17,000**.

When you read a report, check whether "revenue" means rooms only or the whole property. The two numbers are very different.

### Revenue variants

| Variant                            | What it means                                                                 |
| ---------------------------------- | ----------------------------------------------------------------------------- |
| **REV OTB**                        | Revenue from the bookings you already hold for a future stay date             |
| **REV STLY**                       | The revenue you held for the same stay date at the same point last year       |
| **REV LY**                         | The final revenue earned for the same date last year, after the stay happened |
| **REV BDGT**                       | The revenue you budgeted for that date or period                              |
| **REV FCST**                       | The revenue you forecast for that date or period                              |
| **REV vs STLY / LY / BDGT / FCST** | The gap between REV OTB and that comparison, as a percentage                  |

**Revenue vs Budget % = (revenue on the books − budgeted revenue) ÷ budgeted revenue × 100**

**Example.** You hold €110,000 for September and budgeted €100,000. (110,000 − 100,000) ÷ 100,000 × 100 = **+10%**. A positive result is shown in green, a negative result in red. A negative result below -100% is shown as -100%.

**See also:** [ADR](/revhero-docs/support/glossary/a.md) · [Ancillary revenue](/revhero-docs/support/glossary/a.md) · [Budget](/revhero-docs/support/glossary/b.md) · [Forecast](/revhero-docs/support/glossary/f.md) · [Gross revenue](/revhero-docs/support/glossary/g.md) · [Net revenue](/revhero-docs/support/glossary/n.md) · [OTB](/revhero-docs/support/glossary/o.md) · [Room revenue](#room-revenue) · [STLY](/revhero-docs/support/glossary/s.md) · [Total revenue](/revhero-docs/support/glossary/t.md)

***

## Revenue Generation Index (RGI)

RGI compares your RevPAR against the average RevPAR of your competitive set. It shows whether you are winning or losing revenue share in your market. It is also called RevPAR Index.

**RGI = your RevPAR ÷ comp set average RevPAR × 100**

**Example.** Your RevPAR is €110 and your comp set averages €100. RGI = 110 ÷ 100 × 100 = **110**.

| Result        | What it means                         |
| ------------- | ------------------------------------- |
| **Above 100** | You are outperforming your comp set   |
| **100**       | You are level with your comp set      |
| **Below 100** | You are underperforming your comp set |

Your RevPAR can rise while your RGI falls. That means the whole market grew faster than you did, so you lost share.

**See also:** [ARI](/revhero-docs/support/glossary/a.md) · [Benchmarking](/revhero-docs/support/glossary/b.md) · [Competitive set](/revhero-docs/support/glossary/c.md) · [MPI](/revhero-docs/support/glossary/m.md) · [RevPAR](#revpar-revenue-per-available-room) · [STR report](/revhero-docs/support/glossary/s.md)

***

## Revenue management

Revenue management is the practice of selling the right room, to the right guest, at the right time, at the right price, through the right channel. The goal is the highest total revenue and profit.

It is built on 6 parts: dynamic pricing, demand forecasting, inventory control, segmentation, channel management and performance measurement.

**Example.** You see strong forecast demand for a long weekend, supported by last year's pickup and by competitor rates. You raise your rates, and earn more from the same rooms.

**See also:** [Demand forecasting](/revhero-docs/support/glossary/d.md) · [Dynamic pricing](/revhero-docs/support/glossary/d.md) · [RevPAR](#revpar-revenue-per-available-room) · [Revenue management system (RMS)](#revenue-management-system-rms) · [Yield management](/revhero-docs/support/glossary/y.md)

***

## Revenue management strategy

Your revenue management strategy is the structured plan behind your daily pricing. It sets your long-term goals, your position in the market and the business mix you want.

It covers your target segments, your pricing position, your channel mix and cost of acquisition, your seasonal plan, and the KPIs you track.

**Example.** A resort plans a high ADR through July and August, discounts in the shoulder months, and long-stay offers in winter to balance demand across the year.

**See also:** [Business mix](/revhero-docs/support/glossary/b.md) · [Distribution strategy](/revhero-docs/support/glossary/d.md) · [Revenue management](#revenue-management) · [Segmentation](/revhero-docs/support/glossary/s.md)

***

## Revenue management system (RMS)

An RMS is software that helps you price and control your rooms. It reads demand, booking patterns and market conditions, then recommends the rates that earn the most revenue.

What an RMS normally does:

* Recommends rates by date and room type
* Forecasts revenue, occupancy and room nights
* Applies inventory controls such as stay restrictions
* Reports pickup and pace
* Tracks performance by segment and channel
* Shows competitor rates for comparison

**Example.** A 100-room hotel receives rate recommendations for each room type across the next 365 days, based on pickup, seasonality and market demand.

**See also:** [Pickup](/revhero-docs/support/glossary/p.md) · [Revenue management](#revenue-management) · [RevPAR](#revpar-revenue-per-available-room) · [Yield management](/revhero-docs/support/glossary/y.md)

***

## Revenue yield

Revenue yield is the share of your possible revenue that you actually earned. It measures how efficiently you priced.

**Revenue yield = actual revenue ÷ potential revenue × 100**

**Example.** A room with a rack rate of €200 sells for €160. Yield = 160 ÷ 200 × 100 = **80%**.

**See also:** [ADR](/revhero-docs/support/glossary/a.md) · [Rack rate](#rack-rate) · [Yield](/revhero-docs/support/glossary/y.md) · [Yield management](/revhero-docs/support/glossary/y.md)

***

## RevPAM (Revenue per Available Square Metre)

RevPAM is the revenue you earn from each square metre of space you have available. It is used for meeting rooms, event halls, spas, retail units and co-working areas.

**RevPAM = revenue from the space ÷ square metres available**

**Example.** An event hall of 150 m² earns €15,000 in a month. RevPAM = 15,000 ÷ 150 = **€100 per square metre**.

It shows which spaces earn well and which are underused.

**See also:** [RevPAR](#revpar-revenue-per-available-room) · [TRevPAR](/revhero-docs/support/glossary/t.md)

***

## RevPAR (Revenue per Available Room)

RevPAR is your room revenue spread across every room you had available, sold or not. It is the single best measure of whether your pricing and your occupancy are working together.

**RevPAR = room revenue ÷ rooms available**

You can also reach it as **ADR × occupancy**.

**Example.** A 100-room hotel earns €12,000 in room revenue in a day. RevPAR = 12,000 ÷ 100 = **€120**. With an ADR of €150 and occupancy of 80%: 150 × 0.80 = **€120**.

RevPAR lets you compare hotels of different sizes, and compare one period against another.

### RevPAR variants

| Variant                               | What it means                                                         |
| ------------------------------------- | --------------------------------------------------------------------- |
| **RevPAR OTB**                        | RevPAR from the bookings you already hold for a future date           |
| **RevPAR STLY**                       | RevPAR at the same point in last year's booking curve                 |
| **RevPAR LY**                         | The RevPAR the same period finished with last year — last year actual |
| **RevPAR BDGT**                       | The RevPAR you budgeted, from budgeted ADR and budgeted occupancy     |
| **RevPAR FCST**                       | The RevPAR you forecast for a future period                           |
| **RevPAR vs STLY / LY / BDGT / FCST** | The gap in €, as a subtraction                                        |

**RevPAR vs STLY = RevPAR OTB − RevPAR STLY**

**Example.** Your RevPAR OTB is €120 and your RevPAR STLY is €100. RevPAR vs STLY = **+€20**.

**See also:** [ADR](/revhero-docs/support/glossary/a.md) · [Available room nights](/revhero-docs/support/glossary/a.md) · [Occupancy](/revhero-docs/support/glossary/o.md) · [RGI](#revenue-generation-index-rgi) · [STLY](/revhero-docs/support/glossary/s.md) · [TRevPAR](/revhero-docs/support/glossary/t.md)

***

## RevPASH (Revenue per Available Seat Hour)

RevPASH is the revenue a restaurant or bar earns from each seat, for each hour it is open. It shows how well you use space and time.

**RevPASH = outlet revenue ÷ (seats × hours open)**

**Example.** A restaurant with 50 seats is open for 5 hours and takes €2,500. RevPASH = 2,500 ÷ (50 × 5) = **€10 per seat hour**.

A low RevPASH points to slow table turnover, quiet periods or the wrong prices.

**See also:** [Ancillary revenue](/revhero-docs/support/glossary/a.md) · [RevPAR](#revpar-revenue-per-available-room) · [TRevPAR](/revhero-docs/support/glossary/t.md)

***

## RevPATH (Revenue per Available Treatment Hour)

RevPATH is the revenue a spa earns from each treatment hour it has available. It measures how well treatment rooms and therapist time are used.

**RevPATH = treatment revenue ÷ available treatment hours**

**Example.** A spa takes €6,000 in a week and had 120 available treatment hours, from 2 treatment rooms × 6 hours a day × 5 days. RevPATH = 6,000 ÷ 120 = **€50 per treatment hour**.

**See also:** [SREVPOR](/revhero-docs/support/glossary/s.md) · [SUR](/revhero-docs/support/glossary/s.md) · [TRevPAR](/revhero-docs/support/glossary/t.md)

***

## RevPOR (Revenue per Occupied Room)

RevPOR is the average total revenue from each room you sold, including what the guest spent outside the room.

**RevPOR = total revenue from occupied rooms ÷ rooms sold**

**Example.** €15,000 across 100 sold rooms gives a RevPOR of **€150**.

RevPOR is how you see the effect of upselling and of food and beverage spend. ADR alone hides it.

**See also:** [ADR](/revhero-docs/support/glossary/a.md) · [Ancillary revenue](/revhero-docs/support/glossary/a.md) · [TRevPAR](/revhero-docs/support/glossary/t.md) · [Upsell](/revhero-docs/support/glossary/u.md)

***

## Room block

A room block is a group of rooms held for one group or event, usually at a negotiated rate and under agreed terms. It protects both availability and rate for the group.

Blocks are normal for weddings, conferences, corporate travel and tours. They carry a cut-off date, after which unsold rooms return to general sale. They may also carry a minimum pickup requirement and a penalty if the group does not fill them.

**Example.** A conference organiser holds 50 rooms in a block for delegates at a group rate.

**See also:** [Cut-off](/revhero-docs/support/glossary/c.md) · [Group booking](/revhero-docs/support/glossary/g.md) · [Group displacement](/revhero-docs/support/glossary/g.md) · [Wash factor](/revhero-docs/support/glossary/w.md)

***

## Room inventory

Room inventory is the number of rooms you have to sell on a given day, across all room types. It is the base of your pricing and distribution decisions.

There are 2 kinds you should separate:

| Kind                           | What it is                                                                                  |
| ------------------------------ | ------------------------------------------------------------------------------------------- |
| **Actual inventory**           | Every room you physically have, minus rooms out of service for maintenance or refurbishment |
| **Online available inventory** | The part of that inventory you have opened for sale online                                  |

Online inventory is often smaller than actual inventory, because of group blocks, held-back rooms or channel limits.

**See also:** [Allocation](/revhero-docs/support/glossary/a.md) · [Allotment](/revhero-docs/support/glossary/a.md) · [Inventory](/revhero-docs/support/glossary/i.md) · [Overbooking](/revhero-docs/support/glossary/o.md) · [Room block](#room-block)

***

## Room mapping

Placing every shopped room — yours and each competitor's — into a shared category, so that a comparison is like for like. RoomPulse has 4 built-in categories, Single, Standard, Premium and Suite, and you can add your own.

Every hotel names its rooms differently, so until 2 rooms sit in the same category, comparing their prices tells you very little.

Mapping is read in Revhero as well as in RoomPulse. Mapped, a competitor's rate is taken from the category that matches the room you are pricing. Unmapped, the comparison falls back to that property's lowest available rate, which may be a much smaller room.

**See also:** [Auto Mapping](/revhero-docs/support/glossary/a.md) · [Enrich Rooms](/revhero-docs/support/glossary/e.md) · [Median Compset Rate](/revhero-docs/support/glossary/m.md) · [Room type](#room-type) · [Room mapping](/revhero-docs/roompulse/rate-settings/room-mapping.md)

***

## Room nights (RN)

A room night is 1 room occupied for 1 night. It is the basic unit of hotel sales, and the base of occupancy, ADR and RevPAR.

**Room nights = rooms sold × nights stayed**

**Example.** A guest books a Double Room for 3 nights = 3 room nights. A hotel selling 50 rooms a night for 30 days = 50 × 30 = **1,500 room nights** for the month.

Room nights count rooms per night, not bookings. One booking of 5 nights is 5 room nights.

### Room night variants

| Variant                           | What it means                                                          |
| --------------------------------- | ---------------------------------------------------------------------- |
| **RN OTB**                        | Room nights already booked and confirmed for future dates              |
| **RN STLY**                       | Room nights held for the same period at the same point last year       |
| **RN LY**                         | Room nights the same period finished with last year — last year actual |
| **RN BDGT**                       | The room nights you budgeted                                           |
| **RN FCST**                       | The room nights you forecast                                           |
| **RN vs STLY / LY / BDGT / FCST** | The gap in room nights, as a subtraction                               |

**RN vs STLY = RN OTB − RN STLY**

**Example.** You hold 1,200 room nights and held 1,000 at the same point last year. RN vs STLY = **+200 room nights**.

**See also:** [ALOS](/revhero-docs/support/glossary/a.md) · [Available room nights](/revhero-docs/support/glossary/a.md) · [Occupancy](/revhero-docs/support/glossary/o.md) · [Pickup](/revhero-docs/support/glossary/p.md) · [RevPAR](#revpar-revenue-per-available-room) · [STLY](/revhero-docs/support/glossary/s.md)

***

## Room nights by segment

Room nights split by market segment, such as leisure, corporate, group or OTA.

It shows where your volume really comes from, and it makes your forecast and your marketing far more accurate.

**See also:** [Business mix](/revhero-docs/support/glossary/b.md) · [Room nights](#room-nights-rn) · [Segmentation](/revhero-docs/support/glossary/s.md)

***

## Room nights conversion rate

The share of requested room nights that turn into bookings.

**Conversion rate = room nights booked ÷ room nights requested × 100**

It measures how well your website or your sales team turns interest into business.

**See also:** [Conversion rate](/revhero-docs/support/glossary/c.md) · [Direct booking](/revhero-docs/support/glossary/d.md) · [Room nights](#room-nights-rn)

***

## Room nights pace

Room nights pace tracks how quickly room nights are booking for a future period, compared with the same point last year.

It warns you early. A slowdown gives you time to act on rate or marketing before the date arrives.

**See also:** [Booking pace](/revhero-docs/support/glossary/b.md) · [Pace analysis](/revhero-docs/support/glossary/p.md) · [Pickup](/revhero-docs/support/glossary/p.md) · [Room nights](#room-nights-rn)

***

## Room nights per booking

The average number of room nights in each booking.

**Room nights per booking = total room nights ÷ number of bookings**

It shows your stay pattern, which matters for housekeeping, staffing and minimum stay rules.

**See also:** [ALOS](/revhero-docs/support/glossary/a.md) · [Average room nights](/revhero-docs/support/glossary/a.md) · [Room nights](#room-nights-rn)

***

## RoomPulse

The rate shopping tool that comes with Revhero. RoomPulse and Revhero are one package: you sign in to both with the same credentials, and they share the comp set you build.

RoomPulse does 4 things. It reads the public rates your competitors sell. It places your own rate next to theirs. It watches your own sales channels for a price below your own. It tells you when the market changes.

Its main screens are Market Rates, Parity, MetaRadar, Promotions and Alerts.

**See also:** [Rate shopping](#rate-shopping) · [Market Rates](/revhero-docs/support/glossary/m.md) · [Parity](/revhero-docs/support/glossary/p.md) · [MetaRadar](/revhero-docs/support/glossary/m.md) · [RoomPulse overview](/revhero-docs/roompulse/roompulse.md)

***

## Room revenue

Room revenue is your total income from room sales, including taxes. It does not include extras such as food, spa or transfers.

**Room revenue = rooms sold × ADR**

**Example.** 75 rooms sold at €100 = **€7,500**.

If your accounts show room revenue net of tax, divide the Revhero figure by 1 plus your VAT rate before you compare the two.

It is your main source of income, and the base of ADR, RevPAR and net revenue.

**See also:** [ADR](/revhero-docs/support/glossary/a.md) · [Gross revenue](/revhero-docs/support/glossary/g.md) · [Net revenue](/revhero-docs/support/glossary/n.md) · [Revenue](#revenue-rev) · [RevPAR](#revpar-revenue-per-available-room)

***

## Room type

A room type is a category of rooms that share the same size, bedding, view and amenities. Each room type has its own inventory count, its own rates and its own supplements.

Typical examples: Single Room, Double Room, Twin Room, Superior Room, Junior Suite, Suite.

Room type is the main dimension of rate management. Each one has its own demand pattern and its own inventory limit, so each one is priced on its own.

**See also:** [Inventory](/revhero-docs/support/glossary/i.md) · [Pax](/revhero-docs/support/glossary/p.md) · [Rate plan](#rate-plan) · [Room inventory](#room-inventory) · [Supplement](/revhero-docs/support/glossary/s.md)

***

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