Pay 2 Produce
RevPAR
Revenue Per Available Room
Calculated by dividing the hotel’s rooms revenue by the number of rooms available. Rev Par will equal the hotel’s average room rate when occupancy is 100%.
CMH
Company Managed Hotel. Includes hotels that are owned and operated hotels, and those operated under management agreement.
COS/COGS
Cost of Sales or Cost of Goods Sold
We really only have one rule when using acronyms. This is that for all external correspondence acronyms are not used and we never abbreviate our brands.
TACP
Travel Agent Commission Programme. The programme that stipulates how much a travel agent is paid by our hotels for taking a booking.
Reservations
Affiliates
Flow-through
The percentage of change in revenue that flows through to profit against last year or budget. GOP is usually used as the profit measure. Also known as drop through.
CAP
Compliance Assurance Process.
CCP
Customer contribution to Profit. The revenue supplied by a customer in
a yield contribution model, minus the cost undertaken to complete the sale.
The hotel’s contribution to IHG’s Profit – (Total of management and incentive fees).
FAM
Finance and Asset Management (1 of 8 business units). Responsible for corporate management reporting, external financial reporting, Tax, Treasury, IR capital and project appraisals.
RGI
Revenue Generation Index
Calculated by dividing the hotel’s Rev Par by the total Rev Par of your hotel’s direct competitors.
ROCE
Return on Capital Employed, calculated as operating profit before exceptional items divided by net operating assets, less revaluation reserve but adding back written off goodwill.
IGU
Income Generating Unit. Used in financial accounting to aggregate hotels into homogeneous groupings.
ICQ
Internal Control Questionnaire (for a self audit – Finance Department)
CROCCE
Cash Return on Cash Capital Employed.
CRM
Cluster Revenue Manager. A Revenue Manager with responsibilities for more than one hotel.
CTP
Contribution to Profit
GOPAR
Gross operating Profit per available room. (revenue after variable costs)
GRR
Gross Rooms Revenue.
HIRO
HolidayInn Rate Optimiser. The revenue maximisation or yield management system whereby information about guest demand for a particular hotel is compiled and analysed on a hotel by hotel basis and is then used to suggest rates for rooms based on this analysis. It is a highly automated system which assists individual hotels in their management of rates based on patterns and statistical insights derived from the hotel's operating history.
Financial Acronyms
ADR
Average Daily Rate. The average realised price per room sold in a hotel or channel. Total rooms revenue divided by total rooms sold.
IBP
Integrated Business Plan
Forms integral part of budget process and used to track actual sales compared to budget and forecast. Also contains rolling forecast for next 12 months.
SpendPAR
Total spend per available room – a better measure of total revenue in the hotel than RevPAR as it incorporates the performance of non-room revenue generating activities as part of the overall picture.
GDS
Global Distribution System
GOP
Gross Operating Profit before fixed costs and overheads, i.e. before management fees, rent/lease expense, tax, insurance, interest, depreciation, amortisation, gain/loss on sale of property.
CRO
Central Reservations Office
CRS
Central Reservation System. Holidex Plus being rolled out globally replacing Holidex and Global II
ECS
Electronic Commission Services. The group that manages our outsourcing partner and internal systems which make sure travel agent commissions are paid by our hotels (the TACP programme).
ARI
Average Rate Index
Calculated by dividing the hotel’s average room rate by the average of the competitor set market rate.
CAM
Capital Asset Management
ACRONYM LISTING
Joining a new company can be like sitting in a new country and not understanding the local language.
So, to make your first few weeks easier below are some of the common acronyms that we use at InterContinental Hotels Group. We have listed these alphabetically as well as under each function to make this document as easy as possible to use.
LOI
Letter of Intent