Being very active in revenue management and distribution for the last 3 years we at TrevPAR World have never been more challenged with the different games that the OTA channels are playing, now this… Booking.com has recently communicated that their “Genius” rates will now gain you access to a larger audience of frequent travelers as …
The controversy is definitely in the air of the global hotel industry. Traditionally the Big 5 (Marriot & Starwood, Hilton, IHG, Accor and Wydham) have been unrivaled by pure virtue of their size and brand reputation. However are they becoming submissive to major OTA’s like Booking.com & Expedia as they become increasingly powerful in their …
Are OTA’s slowly becoming more powerful than hotel groups? Read More »
World Regions – Follows the United Nations World Tourism Guidelines. There are four world regions which are divided into 15 sub-continents as follows: Americas (North America, South America, Central America, Caribbean); Asia Pacific (Central & South Asia, Northeastern Asia, Southeastern Asia, Australia & Oceania); Europe (Northern Europe, Southern Europe, Eastern Europe, Western Europe); and Middle East/Africa …
Underwater – 1. The condition of a call option when its strike price is higher than the market price of the underlying stock.The condition of a put option when its strike price is lower than the market price of the underlying stock. Also known as out of the money, an underwater option would be worthless if …
Term Asset-Backed Securities Loan Facility – A program created by the U.S. Federal Reserve in November 2008 to boost consumer spending to help jump-start the economy. This is accomplished through the issuance of asset-backed securities. The collateral for these securities consists of student, personal auto and credit card loans. Backing for these loans comes from the …
Sample – The number of hotels and rooms from which data is received. Securitization – The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors. The process can encompass any type of financial asset and promotes liquidity in the marketplace. Mortgage-backed …
Rate Parity – A situation in which a travel supplier, such as a hotel, maintains the same price across all its various distribution channels. REIT – Real Estate Investment Trust – an special type of corporate entity that invests in real estate (on the debt or equity side); this type of company has special tax benefits (i.e. …
Net Operating Income (NOI) – A company’s operating income after operating expenses are deducted but before income taxes and interest are deducted. If this is a positive value, it’s referred to as net operating income, while a negative value is called a net operating loss. NOI often is viewed as a good measure of company performance. …
Manchised – hotel properties that are managed and franchised by the same company. Mark to Market – 1. A measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of a company’s current financial situation. Problems can arise when the market-based …
Joint Venture – The cooperation of two or more individuals or businesses—each agreeing to share profit, loss and control—in a specific enterprise. This is a way for companies to partner without having to merge. JVs typically are taxed as a partnership. Lifestyle Brands – Prescribed franchised products that are adapted to reflect current trends. Limited-Service Hotel – Also known …
