Describing customer segments

FIT – Free Independent Traveller
VFR – Visiting Family and Friends
MICE – Meetings, Incentives (travel incentives for staff), Conferences, Events & Exhibitions

Hotel Financial Performance Measures
ADR – Average Daily Rate
RevPar – Revenue per available room
BAR Best Available Rate
Occupancy – Number of filled rooms / Total number of rooms

Market Share – calculated by dividing the number of rooms in a hotel by the number of competitive rooms in the subject hotel’s market. Eg a 100 room hotel in a market (or market segment economy, luxury etc) with 1,000 rooms is 10% (100/1,000).

Penetration and ‘Fair Share’ – Penetration is the amount of its fair market share that the property is capturing. If the hotel is capturing its fair share of the market, then the penetration is 100%. If the hotel is capturing less than its fair share, then penetration is less than 100% (and penetratin is above 100% if its capturing more than its fair share). Market Penetration is typically based on occupancy however ADR or RevPar penetration can also be used.