This document defines various jargons and terminologies used in the hotel industry. It provides definitions for terms like ALOS, ADR, BEO, BOH, COS, CRS, FIT, FOH, FOM, MOD, OOO, PMS, POS, REV, RMS, SOP and BKG that refer to metrics, systems, roles and processes in hotel operations. Additionally, it explains concepts like allocation, alternative availability, ARR, loyalty programs, OTAs, pax, and rack rates that are commonly used in the hotel and travel industry.

1. Hotel Industry
Jargons &
Terminologies

2. • ALOS- Average Length of Stay
• ADR- Average Daily Rate
• BEO- Banquet Event Order. Includes details such as menus, audio visual
equipment, room set up, time, function, room, etc
• BOH- Back of House. The areas of a hotel that have little or no direct
guest contact, such as kitchen areas, engineering and maintenance, and the
accounting department.
• COS- Cost of Sale

3. • CRS- Central Reservation System
• FIT-Free and Independent Traveler (guests that are not part of a
group or package)
• FOH- Front of House. All guest-facing staff and areas of a hotel.
• FOM- Front Office Manager
• MOD- Manager on Duty
• OOO- Out of Order

4. • PMS- Property Management System
• POS- Point of Sale system
• REV - Revenue
• RMS- Revenue Management System
• SOP- Standard Operating Procedure
• BKG- Booking

5. • Allocation -As the name suggests, it refers to ‘allocation of rooms’ (e.g a
conference or event may have an allocation of rooms at an agreed rate)
• Alternative Availability - When a particular requested property is unavailable
for sale, other available properties are displayed which is termed as
Alternative Availability.
• ARR -Average Room Rate is the total room revenues divided by the number
of rooms occupied, excluding any rooms offered as complimentary

6. • Loyalty Programee -A rewards programme for the regulars. For instance,
vouchers, room upgrades etc.
• OTA - The relationship between a hotel and Online Travel Agencies is much
debated. OTAs are a 3rd party who often sell a hotel’s room inventory on
their behalf in exchange for a commission fee. Examples of some of the
main OTA’s include Expedia, Booking.com, Priceline etc.
• Pax -In a hotel it refers to “No. of Guests”. You might come across terms
such as 1000 Pax Wedding, 20 Pax Restaurant Reservation, 03 Pax per room
pertaining to the number of people involved in each case.

7. • Rack Rate - Every hotel sets its own rates and its own rules to add
discounts on those rates. Simply put, the standard or asking price for a
room, before any discounts are applied is termed as rack rate.