• Abandoned Property:
A form in which financial data are accumulated and summarized.
An obligation created when a person is delegated duties/responsibilities from higher levels of management.
• Account aging:
A method for tracking past due accounts according to the date of charges originated
• Account Allowance:
Either a decrease in a folio balance as compensation for unsatisfactory service or as a rebate for a coupon discount; or a correction of a posting error detected after the close of business
• Account Balance:
• Accounts Payable:
The sum total of all invoices owed by the hotel to its vendors for credit purchases made by the hotel. Also called “AP”
• Account Payable Module:
Back office computers which track the hotel’s purchases and helps the hotel maintain sufficient cash flow to satisfy its debts.
• Accounts Receivable:
Money owed to the hotel because of sales made on credit. Sometimes referred to as “AR” for short.
• Accounts Receivable Aging:
A process by which the average length of time money owed to the hotel because of sales made on credit is determined.
• Account Receivable Voucher:
See Charge Purchase Voucher
• Accounts Receivable Ledger:
A grouping of accounts receivable, including the guest ledger and the city ledger
• Accounts Receivable Module:
A back office computer which monitors guest accounts and account billing and collection when integrated with the front office accounting module.
Short for American with Disabilities Act. ADA prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities.
• Address Verification Service:
A company that, for a fee, allows access to its database of current addresses.
• Adjacent Rooms:
Rooms close to each other, perhaps across the hall.
• Adjoining Rooms:
Rooms with common wall but no connecting door. Not all adjoining rooms are connecting, however, every connecting rooms are adjoining.
• Advance Deposit Guarantee:
A type of reservation guarantee which requires the guest to furnish a specified amount of money in advance of arrival.
Short for “average daily rate,” the average selling price of all guest rooms for a given time period. The formula for ADR is Total Room Revenue/Total Number of Rooms Sold = ADR.
• ADR Index:
ADR of our hotel/ADR of the competitive set.
• Affiliated Hotel:
One of a chain, franchise, or referral system, the membership of which provides special advantages.
• Affiliate Reservation Network:
A hotel chain’s reservation system in which all participating properties are contractually related.
• Afternoon Tea:
A light snack comprised of delicate sandwiches and small sweets served with tea, or even sherry.
• Agency Ledger:
A division of the city ledger dealing with travel agency accounts.
• Agency Problem:
Exists when top managers attempt to maximize their own self-interests at the expense of shareholders.
A Short for American Hotel and Lodging Association.
• Air Handler:
The fans and mechanical systems required to move air through ducts and to vents. (HVAC)
An arrangement between two or more firms that establishes an exchange relationship but that has no joint ownership involved.
• Allowance Voucher:
A voucher used to support an account allowance.
• Allowances and Adjustments:
Reductions in sales revenue credited to guests because of errors in properly recording sales or to appease a guest for property shortcomings.
Hotel products and services designed to attract guests.
• American Plan:
A billing arrangement under which room charges include the guestroom and three meals. Also called Full American plan or full board.
• Antitrust Laws:
Established by governments to keep organizations from getting large and powerful enough in one industry to engage in monopoly pricing and other forms of noncompetitive or illegal behavior.
The establishment of (real estate) value.
The nearly simultaneous purchase of a product at a low price and reselling of it at a higher price with the intention of keeping the difference in price.
• Area of Protection (AOP) [ Franchise]:
The geographic area, which is designated by a franchisor, and granted to a franchisee, in which no directly competing franchisees will be sold.
Short for Average Room Rate, see also ADR.
• Arrival Date:
The date a guest plans to register at the hotel.
Items owned by a business including cash on hand, money in checking or other accounts, money owed to the business, inventories, property, equipment, and furnishings.
The difference between the original request and the actual purchases of a group. For example, a group might reserve one hundred rooms, but actually use only fifty. The hotel’s standard group contract may, in such a case, stipulate that the group pay a penalty for “over-reserving.”
• At-Will Employment:
The employment relationship that exists when employers can hire any employee as they choose and dismiss that employee with or without cause at any time. The employee can also elect to work for the employer or terminate the work relationship anytime he or she chooses.
• Audiovisual Equipment:
Those items including DVD players, laptops, LCD projectors, microphones, sound systems, flip charts, overhead projectors, slide projectors, TVs, and VCRs that are used to communicate information to meeting attendees during the meetings.
The process of verifying records for correctness and completeness.
The individual(s) who conducts an independent verification of financial records.
• Audit Trail:
An organized flow of source documents detailing each step in the processing of a transaction.
• Audit Work Time:
The period from the end of day until the completion of the audit. (FO Night Audit).
The power to tell others to do or not to do something in efforts to attain the hotel’s objectives.
• Authorization Code:
A code generated by an on-line credit card verification service, indicating that the requested transaction has been approved.
• Authorize: To validate.
Short for Audiovisual Equipment.
• Availability Forecast:
An estimate of the number of rooms that remain to be sold.
• Availability Report:
A report which contains expected arrival and departure information for the next several days, typically prepared as part of the night audit.
• Average Daily Rate:
An occupancy ratio derived by dividing net rooms revenue by the number of rooms sold.
• Average Rate Per Guest:
An occupancy ratio derived by dividing net rooms revenue by the number of guests.
• Avoidance Strategy:
Competitive strategy in which a firm avoids confrontation completely by focusing on a particular niche in the market in which other firms have little interest.