The hospitality industry is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, amusement parks, transportation, and additional fields within the tourism industry.
If you are looking to understand the HORECA (hotels, restaurants, cafes) terminology, we will get you up to speed. Here we share a list of few main terms related to the hospitality field and their definitions. Read on!
- Channel Management: Controlling the allocation of hotel inventory and rates across various distribution channels, such as website, third parties, global distribution system, online travel agencies, etc to improve efficiency.
- Ghost Restaurant: A food service business, also referred to as a cloud kitchen, that serves customers exclusively by delivery on the basis of orders placed via phone or website/app. This concept helps restaurants economise by occupying cheaper real estate and not invest in a storefront and a dining room.
- Rack Rate: The full, undiscounted published room rate in a hotel.
- Franchise: It is a technique to scale up the business and expand its units. Herein, the concept owner is the franchisor, and the entity that invests in the brand is the franchisee. The franchisor gets a one-time fee from the franchisee to use his brand name and have guidance on the business. The franchisor also gets an ongoing percentage of profit for giving constant training and support to the franchisee.
- Ingress/Egress: The right to enter a restaurant property is referred to as ingress and the right to leave it is called egress. Any guest who has created an issue in the past may be denied ingress to the restaurant, and a guest who is creating an issue in the present may be denied egress.