Glossary
Plain-language definitions of hospitality and booking terms. If you are new to hosting or just want a quick refresher, this is the place to look.
A
Average Daily Rate(ADR)
The average price you earn per room per night. Calculated by dividing your total room revenue by the number of rooms sold. For example, if you earned RM1,500 from 10 room-nights, your ADR is RM150.
B
Booking Engine
Software embedded on your website that lets guests check availability and book directly — without going through an OTA. This saves you commission fees and gives you the guest's contact details.
C
Cancellation Policy
The rules you set about refunds when a guest cancels. Common options include free cancellation (full refund before a deadline), moderate (partial refund), or strict (no refund). Clear policies reduce disputes.
Channel Manager
Software that automatically syncs your room availability, rates, and bookings across multiple OTAs at once. Without one, you would need to manually update each platform every time something changes.
Check-in / Check-out
The times guests can arrive and must leave your property. For example, check-in at 3:00 PM and check-out at 12:00 PM. Setting clear times gives your team enough time to clean and prepare rooms between guests.
Commission
The percentage fee an OTA charges you for each booking they bring. Typically 15–25% of the booking value. For example, on a RM500 booking with 18% commission, you pay the OTA RM90.
D
Deposit
A partial payment taken at the time of booking to secure the reservation. Common amounts are 50% or one night's stay. Deposits reduce no-shows and protect your revenue.
Direct Booking
When a guest books with you directly — through your website, WhatsApp, phone, or in person — instead of through an OTA. Direct bookings save you commission fees and let you build a relationship with the guest.
DKIM / SPF
Email authentication standards that prove your booking confirmation emails are genuinely from you, not a scammer. Setting these up in your domain's DNS prevents your emails from landing in guests' spam folders.
F
Financial Process Exchange(FPX)
Malaysia's online banking payment system. When a guest pays via FPX, they are redirected to their bank's website to approve the transfer. It is widely used and trusted by Malaysian consumers.
I
iCal
A calendar format used to sync bookings between different platforms. When you connect your Airbnb, Booking.com, or Agoda calendar to Tamu via iCal, bookings appear automatically — preventing double bookings.
iCal Setup Guide →N
Nightly Rate
The price you charge per room per night. You can set different nightly rates for weekdays, weekends, peak seasons, and special events to maximise your revenue.
O
Occupancy Rate
The percentage of your available rooms that are sold over a period. If you have 10 rooms and sell 7 tonight, your occupancy rate is 70%. Higher occupancy means more revenue, but pricing too low to fill rooms can hurt profit.
Online Travel Agency(OTA)
A website where travellers search and book accommodation. Examples include Booking.com, Airbnb, Agoda, and Tiket.com. OTAs bring you guests but charge commission on each booking.
P
Property Management System(PMS)
Software that helps you manage the day-to-day operations of your property — reservations, room assignments, guest communication, housekeeping, and billing — all in one place.
R
Rate Parity
The practice of keeping the same room price across all booking channels (your website, Booking.com, Airbnb, etc.). Some OTAs require rate parity in their contracts. Breaking it can result in lower ranking or penalties.
Revenue Per Available Room(RevPAR)
A key performance metric calculated by multiplying your ADR by your occupancy rate. It tells you how well you are filling rooms at a profitable price. Higher RevPAR means better overall performance.
Missing a term?
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