Starting your first job in the hotel industry can feel like learning a new language. From acronyms to shorthand phrases, hospitality professionals rely on industry-specific terminology to communicate quickly and efficiently—especially during busy shifts.

According to hospitality educators, this shared vocabulary isn’t about exclusivity—it’s about clarity. Knowing the language helps teams stay aligned, reduce mistakes, and deliver better guest experiences.

Below are 13 essential hospitality terms you’re likely to hear early in your hotel career, along with what they mean today.

1. Front of House (FOH) / Back of House (BOH)

Front of House refers to all guest-facing areas of the hotel, such as the front desk, lobby, restaurants, and public spaces.
Back of House includes behind-the-scenes areas like staff offices, break rooms, kitchens, laundry facilities, and service corridors.

Clear separation between FOH and BOH helps maintain a polished guest experience while supporting efficient operations.

2. BEO (Banquet Event Order)

A BEO is a detailed document that outlines every aspect of a banquet or group event. It includes room setup, guest counts, seating layouts, audiovisual needs, food and beverage selections, timing, and staffing requirements.

In 2026, most BEOs are digital and integrated into event management software, but accuracy is still critical—one mistake can impact the entire event.

3. Attrition

Attrition occurs when fewer guests attend an event or stay at a hotel than originally contracted. Group contracts usually allow a small percentage of attrition without penalty, but exceeding that threshold can result in fees.

Understanding attrition is key for sales, events, and revenue management teams.

4. Walk (Walking a Guest)

Hotels sometimes overbook to account for no-shows. When more guests arrive than expected, the hotel may need to “walk” a guest—meaning arrange and pay for accommodations at another nearby property.

Walking guests requires empathy, professionalism, and strong service recovery skills.

5. Comp (Complimentary)

To comp something means to provide it at no charge. This could include a room upgrade, meal, drink, parking, or late checkout—often used as part of service recovery or to enhance a special occasion.

Smart comping balances guest satisfaction with revenue protection.

6. Occupancy Rate

The occupancy rate shows what percentage of a hotel’s available rooms are occupied during a specific period.

A high occupancy rate indicates strong demand, while a low rate may signal the need for promotions or pricing adjustments.

7. ADR (Average Daily Rate)

ADR represents the average revenue earned per occupied room. It’s calculated by dividing total room revenue by the number of rooms sold.

ADR fluctuates based on seasonality, demand, events, and pricing strategy.

8. RevPAR (Revenue Per Available Room)

RevPAR combines both pricing and occupancy to measure overall room revenue performance. It’s calculated by multiplying ADR by occupancy rate—or by dividing total room revenue by total available rooms.

RevPAR is one of the most closely watched metrics in hotel performance.

9. PMS (Property Management System)

A PMS is the core software system used to manage hotel operations. It handles reservations, check-in and check-out, room status, billing, guest profiles, and often integrates with housekeeping, maintenance, and messaging platforms.

Modern PMS platforms also support mobile check-in, digital keys, and guest communication tools.

10. Market Segment

A market segment is a group of guests with similar travel behaviors or needs. Common segments include business travelers, leisure travelers, groups, government, and long-term stays.

Segmenting guests helps hotels tailor pricing, services, and marketing strategies.

11. VFR (Visiting Friends and Relatives)

VFR travelers stay at hotels while visiting friends or family rather than traveling for business or tourism. This segment is often price-sensitive but consistent, especially during holidays and family events.

Hotels often target VFR guests with flexible dates and family-friendly amenities.

12. Bleisure

Bleisure travelers combine business travel with leisure time—extending a work trip to explore the destination. While once associated mainly with millennials, bleisure is now common across all age groups, especially with flexible work policies.

Hotels increasingly cater to bleisure guests with upgraded Wi-Fi, coworking spaces, and extended-stay offers.

13. OTA (Online Travel Agency)

An OTA is a third-party booking platform that allows travelers to compare prices and book accommodations. While OTAs increase visibility, they also charge commissions, making direct bookings more profitable for hotels.

Hotels now focus heavily on loyalty programs and direct-booking incentives to reduce reliance on OTAs.

Why Learning the Language Matters

Understanding hospitality terminology helps you:

• Communicate clearly with teammates
• Avoid costly mistakes
• Build confidence in guest-facing roles
• Advance more quickly into supervisory or management positions

Whether you’re working the front desk, supporting events, or learning hotel operations, mastering these terms will help you feel at home in the industry faster—and position you for long-term success.