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Electronic Global Alternative Distribution Solutions, LLC.

 

Glossary

This dictionary is a comprehensive document to standardize terminology and calculations.  This will continue to be updated and expanded to reflect the most current terms and definitions.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

 

Explanatory Notes

Listed below are explanatory notes for the most commonly misunderstood terms.

"Consumed" versus "Net"

"Consumed" data (i.e., Consumed Bookings, Consumed Revenue, Consumed Room Nights, Consumed Stay) represents information in which the guest has actually checked out of the hotel.

"Net" data (i.e., Net Booked Rate, Net Booked Revenue, Net Booked Room Nights, Net Bookings, Net Conversion Rate, Net Revenue Per FTE, Net Room Nights Per Booking) represents information for a specific reporting period regardless of when the reservation was originally booked.  "Net" data does not necessarily mean the guest has actually completed the stay.

In concept, "Consumed" and "Net" appear to have the same meaning, however, in theory the primary difference between the two is timing in reporting of the data.  GDS primarily reports on "Consumed" data since costs are not incurred until the guest actually checks out of the hotel.  Voice reservations fundamentally reports on "Net" data since costs are incurred at the time the call is received.

"Booking" versus "Reservation" versus "Transaction" versus "Stay"

A "Booking", "Reservation", and "Transaction" basically have interchangeable meanings and may consist of multiple "Stays".   "Booking" and "Reservation" are terminology primarily used in voice reservations while GDS terminology refers to a "Transaction".

A "Stay" may consist of one or multiple room nights at one destination.   However, a "Stay" does not necessarily equal a "Booking", "Reservation", or "Transaction" since multiple "Stay" segments can be booked in one "Reservation".  In other words, a "Booking", "Reservation", or "Transaction" may generate multiple "Stays".

Terms

Definitions/Descriptions

Calculation

Abacus

A GDS based in Singapore serving primarily Asian travel agents and planners

  

Accommodations

Single Room: A room with one bed for one person.

Twin Room: A room with two beds for two people.

Double Room: A room for two persons with a double bed.

Triple Room: A room for three persons, usually consisting of two beds plus a rollaway.

Quad Room: A room for four people, usually consisting of at least two beds and possibly two rollaways.

Ocean Front: A room directly facing the ocean.

Ocean View: A room with a view of the ocean usually located on the side of the hotel.

 

 

Adjustments

A correction or modification to an existing checked-out reservation to reflect actual conditions

  

ADR (Average Daily Rate)

This is a macro measurement used to calculate the average revenue achieved on consumed room nights.  Data in this measurement can be substituted to determine ADR on "Consumed" or "Net" data.  See Explanatory Notes.

Consumed Revenue / total Consumed Room Nights = Average Daily Rate

Aeronautical Radio, Inc. (ARINC)

An independent non profit communications company which provides communication network services to link GDSs to travel service vendors such as hotel and car rental companies

  

Agent

One who acts for or as the representative of another

  

Agent Display

The screen and information the agent sees when they enter a specific format.  For example: air, car or hotel availability.

 

Airline Reporting Corporation (ARC)

The U.S. airline industry organization which issues the identification numbers to accredited U.S. travel agents which are used by the hotel industry for commission payment

  

Amadeus

A worldwide GDS based in Europe.  Principal partners are Air France, Lufthansa German Airlines and Iberian Airlines

  

America On-Line

An information service which offers news, email, and a diverse range of databases to general public subscribers via computer and modem

  

American Society of Travel Agents (ASTA)

The leading trade association with U.S. retail travel agents and tour operators as allied members

  

Anasazi

The software company in Phoenix, Arizona who developed the Promus CRS

     

Apollo

Originally developed as the internal CRS for United Airlines.   Apollo is the GDS operated by Galileo International from offices in Rosemont, Illinois.  Marketed in Canada, Europe, South America, Asia, and Africa under the Galileo name and in the United States and Mexico as Apollo

  

ARC (Airline Reporting Corporation) Number

The membership identification number assigned to accredited travel agencies in the U.S.  ARC numbers are accepted by the hotel industry as indicating a legitimate travel agency to which a commission should be paid.

  

ARU

Automatic Rate Update -- See Electronic Rate Update (ERU)

  

Available Room Nights

The total number of room nights that can be sold (often referred to as inventory).

  

AXESS

GDS developed by Japan Airlines to serve primarily Japanese travel agents and travel planners

  

Benchmarking

The search for those best practices that will lead to the superior performance of a company

  

BDT (Bulk Data Transfers)

See Electronic Rate Update

  

Booked Rate

See Gross Booked Rate and Net Booked Rate

  

Booked Revenue

See Gross Booked Revenue and Net Booked Revenue

  

Booked Room Nights

See Gross Booked Room Nights and Net Booked Room Nights

  

Booker

A person who regularly makes reservations for others such as an administrative assistant or individual travel agent

  

Booking Engine

A computerized reservation system that provides supplier availability of products, rates, descriptions and reservations to the end user.  For example: GDSs – Amadeus, Galileo, Sabre, Worldspan.

 

Browser

A computer program used for accessing sites or information on a network such as the World Wide Web. For example: Microsoft Internet Explorer or Netscape Navigator.

 

 

Cancellation

The CRS transaction generated by a request to cancel an existing confirmation Number(s) and/or segment(s) of a reservation

Gross Bookings - Net Bookings = Cancellations  OR (Gross Conversion Rate - Net Conversion Rate) * Handled Calls = Cancellations

CBT (Computer Based Training)

A self administered, individually paced training program provided on a computer terminal.  The program delivers instructions without instructor participation.

  

Central Reservation Office (CRO)

The central operation which processes both toll-free telephone reservations and electronic reservations

  

Central Reservation System (CRS)

The computer network which stores individual supplier information, rates and inventory/availability and allows inquiries to be made and reservations confirmed.

  

Chain Code

A two-letter identification code used to identify a supplier company or a Reservation Service Provider in the CRS or GDS.

  

Change

A transaction generated by a request to modify an existing reservation.

  

Checked-Out Reservations

The tracking and reporting of reservation data in which the guest has completed the stay

  

Client Rate

A rate offered to a corporate client.

 

Client Profile

Information that is stored in the CRS specific to a guest, corporation, travel agency, or booker

  

Commission

The amount a travel agent receives from the supplier for selling transportation, accommodations, or other services

  

Commissionable

Rates for rooms that are booked by retail or wholesale travel agents for which the hotel agrees to pay the booking agent a booking commission (usually 10 percent)

  

Complete Access

Type A link processing for Amadeus that enables travel agents to receive instant response to bookings

  

CompuServe

An information service which offer news, email, and a diverse range of databases to general public subscribers via computer and modem

  

Confirmation Number

A unique number assigned to each reservation made through the CRS

  

Connectivity

The ability to connect or to communicate with another community

  

Connect Time

The amount of time spent by callers in que or ringing before being answered by an agent

  

Consumed Bookings

See Checked-Out Reservations and the Explanatory Notes

  

Consumed Revenue

The amount of revenue actually generated from reservation activities in which the guest has completed the stay. -- See Explanatory Notes

total Consumed Room Nights * Average Daily Rate = Consumed Revenue

Consumed Room Nights

The total number of room nights actually sold in which the guest has completed the stay. -- See Explanatory Notes

Occupancy * Available Room Nights = Consumed Room Nights

Consumed Stay

A stay in which the guest has actually checked out of the hotel. -- See Explanatory Notes

  

Contractual Rate

A rate agreement between a hotel and a consortium or group of travel agencies.

 

Contribution to Occupancy

The average percentage of Consumed Room Nights booked by each distribution channel

Consumed Room Nights by Distribution Channel/ total Consumed Room Nights = Contribution to Occupancy

Corporate ID

A unique numeric identifier assigned to companies that will qualify travelers for discounted rates

  

Cost Per Booked Room Night

The average cost incurred for each room night reserved through advance bookings

Total Expenses / Net Booked Room Nights = Cost Per Booked Room Night

Cost Per Consumed Room Night

The average cost incurred for each room night occupied

Total Expenses / Consumed Room Nights = Cost Per Consumed Room Night

Cost Per FTE

The average cost incurred for each full-time equivalent

Total Expenses / Total FTE Count = Cost Per FTE

Cost Per Gross Booking

The average cost incurred for each reservation booked, regardless of the number of room nights generated at the time of booking

Total Expenses / Gross Bookings - Cost per Gross Booking

Cost Per Net Booking

The average cost incurred for each reservation booked less cancellations, regardless of the number of room nights generated at the time of booking

Total Expenses / Net Booking = Cost Per Net Booking

Cost Per Sold Room Night

See Cost Per Consumed Room Night

  

COVIA

Former owner and operator of Apollo which merged with Galileo to form Galileo International

  

DATAS II

GDS formerly owned by Delta Airlines, now replaced by Worldspan.  See Worldspan

  

Defined Viewership

GDS allows classified information to be seen only by authorized viewers.  It is commonly used in conjunction with negotiated rates or contracts.

  

Delphi

An information service which offers news, email, and a diverse range of databases to general public subscribers via computer and modem

     

Denials

A reservation request not booked due to lack of availability of inventory.  Measured mostly by the CRO.  Denials indicate turn-away because there is no availability for a specific hotel.

  

Direct Access

A term used by GDS to describe the mode of reservation processing in which the supplier's reservation system provides a confirmation number within seven seconds of the completion of the booking requests and prior to the travel agent ending the booking transaction

     

Direct Connect

Type A link processing for SABRE that enables travel agents to receive instant response to bookings

  

Direct Reference Screen (DRS)

The section of GDS containing sales oriented descriptions of services to assist travel agents in booking the product or service offered

   

Distribution Channel

The original method in which reservations are booked, i.e., Central Reservation Office, Global Distribution Systems, Hotel Direct, Hotel to Hotel, Walk-In, or other

  

Downtime

The total time a system is not working due to some software or hardware failure

  

EDS (Electronic Distribution Systems)

Computerized reservation systems which subscribed users can view and book travel products or services

  

EDT (Electronic Draft Transmission)

A method for hotels to transmit credit card payments through the CRS to the Data Center and then to the credit card company or bank

  

Electronic Rate Update

The automated electronic communication of rate changes from the CRO database to the GDS databases

  

Electronic Reservation Service Provider

An ERSP provides corporations and consumers with booking capabilities and travel supplier’s inventory, rates, information via the Internet, Intranet or online service. Unless accredited as a travel agent by ARC, IATA or an airline carrier they cannot issue tickets.

For Example: Travelocity, Expedia, Orbitz, TravelWeb, TravelWiz, Internet Travel Network

 

Emulator

The menu option on the hotel's screen that allows them to access the CRS

  

Extranet

A private network operating like the World Wide Web but having access restricted externally to a limited group of authorized users such as specific clients.

 

Falcon

Travel agency distribution system which uses SABRE applications and marketed in the Middle East by Gulf Air

  

Familiarization Tour

A complimentary or reduced-rate travel program for travel agents and/or airline employees that is designed to acquaint them with specific hotels or destination(s) in order to stimulate travel sales

  

Fantasia

A regional GDS operated by Quantas Airlines in partnership with the SABRE Travel Information Network to serve primarily travel agents and travel planners in Australia, New Zealand, and the South Pacific

   

File Transfer Protocol (FTP)

Software that allows files to be transferred between different types of computers.

  

Full Time Equivalent (FTE)

Expression used to convert full-time, part-time, and temporary positions into Full Time Equivalent positions.

Paid Hours / 8 hours per day per person = Full Time Equivalent

Galileo

GDS serving users in Canada, Europe, South America, Asia, and Africa

  

Gateway

Technology of using a remote computer or service to connect to a third computer to process information or feed information directly

  

GDS (Global Distribution System)

The entire electronic travel information network that travel agents and consumers who subscribe to on-line services use to book airline seats, rental cars, hotel rooms, and other travel reservations and services

  

GNR (Guest Name Record)

The file in the CRS which contains the details of an individual reservation.

  

Graphical User Interface (GUI)

"Gooey"  A special environment built into software taking cryptic codes and making the screens more user friendly and easier to use through pull-down menus on-screen buttons, and toolbars that can be manipulated with a mouse.

  

Gross Booked Rate

The average rate theoretically booked for the total number of room nights reserved through advanced bookings for a specific stay by a particular agent

Gross Booked Revenue / Gross Booked Room Nights = Gross Booked Rate

Gross Booked Revenue

The amount of revenue theoretically generated from the total number of room nights reserved through advanced bookings

Gross Booked Room Nights * Gross Booked Rate = Gross Booked Revenue

Gross Booked Room Nights

The total number of room nights theoretically reserved through advanced bookings

  

Gross Bookings

The total number of advanced reservations theoretically reserved through advanced bookings

  

Gross Conversion Rate

This variable is a measurement of the ability to convert sales opportunities to reservations

Gross Bookings / Handled Sales Calls = Gross Conversion Rate

Gross Revenue Per FTE

This is a macro measurement used to calculate the revenue produced per Full-Time Equivalent.  This measurement can be used on an hourly, daily, monthly, etc., basis depending on the availability of data

Gross Booked Room Nights = Gross Booked Rate / Total FTE Count   =Gross Revenue Per FTE

Gross Room Nights Per Booking

This is a macro measurement used to calculate the average number of room nights booked per reservation.

Gross Booked Room Nights / Gross Bookings = Gross Room Nights Per Booking

Guaranteed Reservation

A hotel reservation secured by cash prepayment, credit card, corporate account or contract.  If the guest does not arrive, the hotel may charge the guest (usually one nights' room and tax)

  

HCC (Hotel Clearing Corporation)

The THISCO subsidiary created to provide worldwide centralized commission payment in local currency for hotel chains that are members

  

HEDNA (Hotel Electronic Distribution Network Association)

The organization of hotel marketing automation staff, GDS and travel agency representatives formed in 1991 to advance communication, procedures, and technology for the sale of hotel accommodations through electronic distribution systems

  

HMS

Hotel Management System -- See also Property Management System

  

HOD

Hotel description information for a property or hotel chain in the GDS.  All relevant information regarding location, amenities, and policies is sorted and accessed in this arena.

  

Hotel Direct

Distribution channel method in which advance reservations are booked by the destination hotel

  

Hotel to Hotel

Distribution channel method in which reservations are booked by one hotel for another hotel

  

HRS

Hotel Reservation System, also referred to as CRS

  

IATA (International Air Transport Association)

The world trade association of airlines which operates domestic and international services and acts as a supranational organization proposing rates, conditions or services, safety standards, etc.  IATA appoints retail travel agents for international ticketing through its IATAN subsidiary

  

IATA Number

The membership identification number assigned to accredited travel agencies situated outside the U.S.

  

IATAN (International Airlines Travel Agent Network)

Wholly owned subsidiary of IATA which is responsible for accrediting travel agents for member airlines

  

Incomplete Transmission

The process of transmitting hotel revenue and travel agent commission data nightly from each hotel that is not received properly.  The hotel must retransmit the revenue to report but the travel agent commission data is not retransmitted.

    

Index Points

A cross reference system employed by several GDSs to allow a hotel to list its distance and direction from specific points, i.e., airports of landmarks.

  

Infini

Japan based regional GDS owned by Abacus and ANA

  

Inquiry

A request for information, i.e. missing commission

  

Inside Availability

Apollo/Galileo's Seamless Connectivity product which enables travel agents to view rates and other property information directly from the hotel CRS

 

Inside Link

Type A link processing for Galileo International that enables travel agents to receive instant response to bookings

  

Intranet

A private network operating like the World Wide Web but having access restricted internally to a limited group of authorized users such as employees of a company.

 

 

Internet

The worldwide network of computers originally developed by the U.S. Government, traditionally used for scientific and academic research and communication.  It has been broadened to include more business-oriented activities including the listing of hotels.  Internet is configured in a series of "webs" with the World Wide Web most often used for travel information.   Using a software package such as Mosaic, Internet users can view full color photos and detailed displays on participating hotel priorities.

  

Inventory

The supply of guest rooms at a hotel and their status, i.e., available/sold and open/closed

  

Itinerary

The travel schedule provided by a travel agent which details hotel names, flight numbers, departure times, etc.

  

KAD

A term for Key Account Director.  The liaison between the supplier and the distributor who handles account management and the preferred rate negotiations.

 

Last Room Availability (LRA)

A travel agent's ability to book the last room available in a hotel

  

Manual Commission

The process by TAC in which travel agent commission must be manually entered in the GNR for automatic payment

  

Meals

Continental Breakfast:  Usually consists of bread, rolls, butter, jam and tea or coffee.

AP (American Plan): Includes breakfast, lunch and dinner.

MAP (Modified American Plan): Includes breakfast and dinner.

 

Message Delivery System (MDS)

A portion of the CRS which handles messages between the hotels and the CRS

  

Multilevel Rates

Term for negotiated rates in Apollo/Galileo

  

Negotiated Rate

A commercial rate that has been offered to a travel agency or a consortium of travel agencies to be used for any of heir clients in return for volume business.  These are sometimes called Preferred Rates.  Viewership of these rates in the GDS by users are restricted unless an authorized code is entered.

  

Net Booked Rate

The average rate actually booked from the total number of room nights reserved minus cancellations for a specific period regardless of when the stay actually occurs.  Even though this calculation uses "Net" data, it does not suggest "Consumed" data.  See Explanatory Notes.

Net Booked Revenue / Net Booked Room Nights = Net Booked Rate

Net Booked Revenue

The amount of revenue actually generated from the total number of room nights reserved through advanced bookings minus cancellations.  See Explanatory Notes.

Net Booked Room Nights * Net Booked Rate = Net Booked Revenue

Net Booked Room Nights

The total number of room nights actually generated from advanced bookings minus cancellations.  See Explanatory Notes.

Gross Booked Room Nights - Cancellations = Net Booked Room Nights

Net Bookings

The total number of reservations actually generated minus cancellations.  See Explanatory Notes.

Gross Bookings - Cancellations = Net Bookings OR (Handled Calls - Transferred Calls) * Net Conversion Rate = Net Bookings

Net Conversion Rate

This variable is a measurement of the agent's ability to convert sales opportunities to reservations.  See Explanatory Notes.

Net Bookings / Handled Sales Calls = Net Conversion Rates

Net Non-Commissionable

Rates that have no commissions attached to them.  A rate offered by a hotel whereby the travel agent or wholesaler agrees to forgo commission

  

Net Revenue Per FTE

This is a macro measurement used to determine the net revenue produced per Full Time Equivalent. See Explanatory Notes.

Net Booked Room Nights * Net Booked Rate / Total FTE Count = Net Revenue Per FTE

Net Room Nights Per Booking

This is a macro measurement used to calculate the average number of room nights booked per reservation less room nights canceled.  See Explanatory notes.

Net Booked Room Nights / total Net Bookings = Net Room Nights Per Booking  OR  Net Booked Room Nights / (total Gross Bookings - total Cancellations) = Net Room Nights Per Booking

Network Data Mover (NDM)

A software application used to transmit revenue and guest information from hotel level to corporate level

  

Occupancy

The percentage of rooms sold

Consumed Room Nights / Available Room Nights = Occupancy

Occupied Room Nights

See Consumed Room Nights

  

Onward Distribution

The distribution of supplier data and products by the GDSs acting either passively (behind the scenes) or actively via the Internet, Intranets and Extranets.

 

Open Viewership

Allowing anyone to access rates.

 

PARS

Passenger Airline Reservation System.  GDS formerly owned by Northwest Airlines and TWA, now replaced by Worldspan. See Worldspan.

  

Passenger Name Record (PNR)

A booking in the GDS. A PNR can include all segments of the client's itinerary such as air flights, rental cars, and hotel reservations.  A PNR is crated and "owned" by the travel agent and remains in the GDS database.   CROs and individual hotels may not view or change a guest's PNR.

  

PMS (Property Management System)

The computer system in a hotel that contains information about available and occupied guest rooms, future reservations, and guest charges.

  

Point of Sales

Same as Defined Viewership. It can also be geographic or demographic areas to which a travel agent has exclusive access.

 

Pseudo City Code

An identification code established by GDS companies for a terminal location.  This code allows classified information such as preferred rates to be accessible by a specific agency.

 

Preferred Rates

Rates that are agreed upon between the supplier and the distributor that are discounted based on volume. Other terms referring to preferred rates are: contracted, negotiated, muli-level, tiered and secured rates depending on the GDSs.

  

Prodigy

An information service which offers news, email, and a diverse range of databases to general public subscribers via computer and modem

  

Pseudo-City Code

A code which identifies the location of the terminal of a travel agency which makes reservations for a designated company.  This allows classified information to be accessible only to that agency.  This is also referred to as Defined Viewership.