COMMON ACRONYMS USED IN HOTEL NEGOTIATIONS Learning

COMMON ACRONYMS USED IN HOTEL NEGOTIATIONS

Learning Objective

To provide a quick look resource that defines key acronyms used by the hotel industry.

Audience

Conference Organizers & IEEE Organization Units

Benefits

By utilizing this list of key terms you can save time when reviewing and negotiating hotel

contracts.

Remember, you can always reach out to MCE for assistance when it comes to contract

negotiations. Take advantage of IEEE contract experts, who can help you obtain the best deal

possible. You can request assistance by sending an email to [email protected].

HOTEL INDUSTRY ACRONYMS

ACRONYM

DEFINITION

24-Hour Hold

A term used to describe the type of reservation made on function space within a

venue (hotel, convention center, etc.). An event organizer who has 24-hour hold on

a space has exclusive use and access to that space for a period of 24-hours, usually

12:01am-12:00pm.

ADA

Americans with Disabilities Act. U.S. legislation passed in 1992 requiring public

buildings (offices, hotels, restaurants, etc.) to make adjustments meeting minimum

standards to make their facilities accessible to individuals with physical disabilities.

ADR

Alternative Dispute Resolution – method for resolving disputes without going to

court.

American Plan. A type of hotel rate that includes the price of the room and all

meals. Also called FULL AMERICAN PLAN, DEMI-PENSION, EUROPEAN PLAN,

MODIFIED AMERICAN PLAN.

Amenity

A hotel amenity is something of a premium nature provided in addition to the room

and its basics when renting a room at a hotel.

ASCAP & BMI

American Society of Composers, Authors, and Publishers. A membership

organization that represents individuals who hold the copyrights to music written in

the United States and grants them licensing agreements for the performance of that

music.

Broadcast Music, Inc. is a music licensing organization that represents individuals

who hold the copyrights to music written in the United States. It grants licensing

agreements for the performance of music.

Attrition

The difference between the actual number of sleeping rooms picked-up (or food-

and-beverage covers or revenue projections) and the number or formulas agreed to

in the terms of the facility’s contract. Usually there is an allowable shortfall before

damages are assessed.

Audiovisual (A/V). Equipment, materials, and teaching aids used in sound and

visual presentations, such as television monitors, video, - can also be the term used

for the team providing these services.

BEO

Banquet Event Order. A form most often used by hotels to provide details to

personnel concerned with a specific food and beverage function or event room set-

up.

COI

Certificate of Insurance

Complimentary

Ratio

The number of rooms provided at no cost based on the number of occupied rooms.

Concessions

Merchandise or refreshments sold on site, to individuals, in conjunction with an

event. Also, a contractual agreement where one party provides something of value

to the other party in exchange for something else, pending certain conditions.

CSM

Convention Services Manager. Professional at a hotel, convention center or

convention bureau who is responsible for event operations management at all

levels.

CVA/CVB

Convention and Visitors Authority. Also CONVENTION AND VISITORS BUREAU.

CWT

Abbreviation for “hundred weight.” This is the unit of measure used in drayage and

freight shipments.

DMC

Destination Management Company – a professional services company possessing

extensive local knowledge, expertise and resources, specializing in the design and

implementation of events, activities, tours, transportation and program logistics.

Depending on the company and the staff specialist in the company, they offer, but

are not limited to, the following: creative proposals for special events within the

meeting; guest tours; VIP amenities and transportation; shuttle services; staffing

within convention centers and hotels; teambuilding, golf outings and other

activities; entertainment, including sound and lighting; décor and theme

development; ancillary meetings and management professionals; and, advance

meetings and onsite registration services and housing.

Drayage

Delivery of exhibit materials from the dock to an assigned exhibit space, removing

empty crates, returning crates at the end of the event for re-crating, and delivering

materials back to dock for carrier loading.

ECB

Event-Contracted Block (the rooms that are contracted for by an event organizer

with hotel(s) or housing facility(s) for a particular event.)

F & B

Food and Beverage.

Force Majeure

An event (e.g. war, labor strike, extreme weather, or other disruptive

circumstances) or effect that cannot be reasonably anticipated or controlled: a

“fortuitous event.” (ACT OF GOD also used, refers to an extraordinary natural

event, such as extreme weather).

Guarantee

(continued)

A promise of commitment to provide a minimum amount of sleeping rooms, F&B, or

other revenues. Usually there is a financial liability if the commitment is not met.

The final number of persons to be served is usually required at least 48 hours in

advance of a food & beverage event.

ICW

In Conjunction With. An event or function that occurs because of another event.

Indemnification

A contract clause in which one party agrees to pay damages or claims that the other

Clause

party may be required to pay for another. For example, if a hotel sued by an

attendee that is injured at an event due to the fault of the group, an indemnification

clause might require the group to pay back the hotel. Sometimes the law requires

one party to indemnify another even without a specific clause. Generally, the terms

of the clause will be followed over the state law. Also HOLD HARMLESS, a type of

indemnity clause that requires one party to fully protect the other from a claim

asserted.

IPO

Individual Pays Own. Also EPO, PAYS OWN.

LAV

Short for Lavatory or Lavaliere Microphone.

LOC

Letter of Credit (L/C). A document issued by a bank per instructions from a buyer of

goods, authorizing the seller to draw a specified sum of money under specified

terms. A CONFIRMED LETTER OF CREDIT is a letter of credit, issued by a foreign

bank, whose validity has been confirmed by an American bank. An exporter whose

payment terms are a confirmed letter of credit is assured of payment even if the

foreign buyer or foreign bank defaults.

Master Account. A record of transactions during an event where the resulting

balance is paid directly by the group. May include room tax, incidentals, food and

beverage, audiovisual equipment, décor, etc. Also called Master Bill.

MOD

Manager on Duty. Person at a facility in charge of operations and/or guest relations

for a certain period of time.

Occupancy

Rate

In hotel /motel industry, the percentage of total number of available sleeping

rooms actually occupied. Derived by dividing the total number of rooms occupied

during a given time period (night, week, year) by the total number of rooms

available for occupancy during the same period.

PCO

Professional Congress Organizer. European term for DMC (Destination

Management Company). Local supplier who can arrange, manage, and/or plan any

function or service an event.

PEAK NIGHT

Referring to the night during an event when most rooms are occupied by those in

attendance.

PER

Post Event Report. A report of the details and activities of an event. A collection of

post event reports over time will provide the complete history for an event.

Rack Rate

Facility’s standard, pre-established guest room rates.

RevPAR

Revenue Per Available Room. A performance measurement commonly used in the

hotel industry. It is calculated by dividing a hotel’s net rooms revenue by the total

number of available rooms, or by multiplying a hotel’s average daily room rate

(ADR) by its occupancy.

RFP

Request For Proposal. A document that stipulates what services the organization

wants from an outside contractor and requests a bid to perform such services.

Same as BID MANUAL/SPECIFICATIONS.

Room/Space

Ratio

Room to space ratio – Calculation/guidelines set by hotel revenue management

team for evaluation of business based on group’s requested room night and how it

aligns with function/meeting space requirements. Space-intensive meetings come

up against this frequently as a reason for declining RFPs.

Run-of- the-

House

Rooms given at random according to availability when the reservations are made.

Also refers to a flat rate for which a hotel or motel group agrees to offer any of its

available rooms (with the exception of suites) to a group. Final assignment of

rooms is at the discretion of the hotel.

Service Charge

A mandatory and automatic amount added to standard food and beverage charges,

usually used to defray the cost of labor, such as housemen, servers, technicians, etc.

and which the facility receives a portion of the charge. In return, the guest is

relieved the responsibility of tipping. Also, a fee charged to a client by a travel

agent in addition to the commissions paid to him or her by his or her principals.

SOE

Schedule of Events. Table of time and location for all functions related to an event.

This information should be included in the specifications guide for an event.

Walk

Guest holding confirmed sleeping room reservation is denied accommodations at

the hotel where the reservation is being held upon their arrival and is relocated to

another hotel.

Wash

The difference between number of reservations at cut-off date and the number of

final reservations at the end of an event. Can be positive or negative and be

expressed as a number or percentage.