GLOSSARY

Merchant Model

Alternate Names: 

Merchant Model is the rules of engagement between a property and its guests or distribution partners. Much like the fine print on a concert ticket, it spells out who pays what, when, and under what conditions. These policies protect the hotel's revenue while also setting expectations for travellers, and they vary from flexible and guest-friendly to rigid and highly protective.

For managers, understanding Merchant Model means you can tailor your offers to different markets, balance risk and reward, and avoid unpleasant surprises. Communicating these policies clearly on your website and through OTAs helps reduce disputes and builds trust. Savvy hoteliers tweak them based on demand seasons, group size or channel performance, treating them as adjustable levers rather than static text.

Related Terms

Average Daily Rate

Average Daily Rate is like the hotel's report card, it measures a specific slice of performance and keeps management honest. Imagine looking at your bank statement to see how you're doing; this metric does the same for rooms, revenue or costs.

No-show

No-show is like the hotel's report card, it measures a specific slice of performance and keeps management honest. Imagine looking at your bank statement to see how you're doing; this metric does the same for rooms, revenue or costs.

OTB / BOB

OTB / BOB is a familiar concept in hospitality, though it may sound mysterious at first. Behind the jargon is a simple idea that makes day‑to‑day operations smoother and helps you understand how properties make money or serve guests.

Demand Forecasting

Demand Forecasting is a familiar concept in hospitality, though it may sound mysterious at first. Behind the jargon is a simple idea that makes day‑to‑day operations smoother and helps you understand how properties make money or serve guests.