GLOSSARY

Net Operating Income

Alternate Names: 

NOI

Net Operating Income 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. In practice, Net Operating Income often influences pricing, staffing or guest communication.

Knowing how Net Operating Income works means you can spot opportunities and avoid pitfalls, whether you're optimizing a vacation rental portfolio or running a busy city hotel. Like learning any new language, it's all about context: once you know what it means, the term becomes a powerful tool rather than confusing noise.

Related Terms

Commissionable Rate

Commissionable 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.

Turn

Turn is a piece of hospitality slang that makes daily life in hotels and vacation rentals smoother. It refers to a routine action or status, think of it as shorthand that front desk agents, housekeeping, and revenue managers use to keep everyone on the same page.

Travel Agent Commission

Travel Agent Commission 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.

Early Departure Fee

Early Departure Fee 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.