Glossary

Below are some of the terms used, many of which we’re sure you’ll already be familiar with, however we’ve brought them together here as a point of reference:

ARR – “Average Room Rate” is the total bedroom revenue for a given period divided by the total bedrooms occupied during that period (i.e. £15000 worth of business out of a total of 100 occupied rooms = Room Rate of £150)

Comparative Sets – are the list of hotels/ guest houses etc included in the grouping which combine to give aggregated data for your area/ grade of Hotel etc

Fair market rate – is the rate set for the price of a room based on prevailing conditions at the time (high season/ low season; supply/ demand)

Occupancy - is the proportion of bedrooms occupied relative to total available occupancy for that period (i.e. 100 rooms occupied out of a total of 200 rooms available = Occupancy of 50%)

ROI – “Return on Investment” is the cost versus the reward. In this instance it’s the cost of using the LJForecaster system per week, per month per year versus the return from having such powerful information at your fingertips

REVPAR – “Revenue per available room” is the total bedroom revenue for a given period divided by the total available bedrooms during that period (i.e. £15000 worth of business out of a total 200 rooms available = REVPAR of £75)

RFP – “Request for price”

Yield Management – or “Revenue Management” is used to understand, anticipate and then react to expected occupancy levels in order to maximise revenue and profit. It is a way of maximising the return from a limited resource i.e. bed nights.