Within PMI, there are some terms and abbreviations used that may be unfamiliar. Here are some of the main terms and abbreviations with definitions:

Within PMI, there are some terms and abbreviations used that may be unfamiliar. Here are some of the main terms and abbreviations with definitions:

A&G – Stands for administrative & general. This is often a division in a property with all the admin departments (finance, executive office, etc).

ADR – Stands for average daily rate. ADR is the average of each day’s room rate for the period and is the sum of all average daily rates during the period, divided by the number of days in the period. In PMI, we use the average room rate (ARR) as a KPI instead of the average daily rate, as it is more accurate when looking at a longer period.

ARM – Stands for adaptive resource management, which is a process framework consisting of 5 steps: plan, do, monitor, evaluate & learn, adjust. The main focus of ARM is continuous improvement to cope with uncertain environments. This process framework is used in the PMI Adoption index.

ARI – Stands for average rate index. This measures a hotel’s average daily rate performance relative to an aggregated grouping of hotels (e.g., competitive set, market, or submarket). If all things are equal, a property’s ARI is expected to be 100 compared to the aggregate group of hotels. Historically, this is described as “fair share.”

ARR – Stands for average room rate. This is a measure of the average rate paid for the rooms sold, calculated by dividing total room revenue by rooms sold.

Arrows logic – Directional, colored arrows are found in the Management perspective module. The color indicates how the departments are pacing compared to the forecast/budget. The direction indicates how they are pacing compared to last year.

• Upward green arrow – The performance was better compared to both last year and to the forecast/budget.
• Downward green arrow – The performance was worse compared to last year, but better compared to the forecast/budget.
• Upward red arrow – The performance was better compared to last year but worse compared to the forecast/budget.
• Downward red arrow – The performance was worse compared to both last year and the forecast/budget.

Benchmarking – Hotel benchmarking is about assessing and comparing your hotel’s performance with the industry’s best players and the top competitors. This helps determine where you stand in the market and how you can improve your overall business.

BRE – Stands for benefits realization enablement. The BRE team helps ensure that hospitality businesses fully realize productivity improvements.

Cockpit – A cockpit is a module in PMI designed to help each head of department manage their daily operations. From keeping track of labor costs to monitoring the hotel’s environmental footprint, these cockpits provide the information needed to make informed decisions.

Consumption – The using up of a resource. This is measured in GoGreen cockpits and relates to the use of energy, water, waste, etc.

COS – Stands for cost of sales. It is a cost directly related to everything needed to keep a business up and running, such as payroll, rent, office supplies, utilities, marketing, insurance, accounting, legal fees, and taxes.

Cost driver – Activity or revenue that determines the department’s need for labor. Example: In housekeeping, the cost driver is yesterday’s room nights. If more rooms are used, more hours will be needed to clean rooms.

d2o – Stands for deadline to online, the name of the company behind PMI.

FC – Stands for financial controller.

Fixed hours/staff – Staff with a contracted/fixed number of hours per month. These positions must be filled regardless of business volume.

Flash report – An operations report providing an overview of all daily revenue for all departments in PMI. Figures are updated every morning, showing daily performance, month-to-date results, and Live forecast predictions.

Flexible hours – Staff who are on an hourly rate without a fixed contract.

Forecast – Your monthly target and expectation before entering a new month. This is locked and should not be changed during the month.

FTE – Stands for full-time equivalent, a unit of measurement comparing the hours worked by employees to a full-time workweek.

GM – Stands for general manager.

GOP – Stands for gross operating profit.

GOPPAR – Stands for gross operating profit per available room.

Guest nights – The number of guests staying at the hotel.

HOD – Stands for head of department.

KPI – Stands for key performance indicator.

Labor cockpit – This cockpit is used to manage labor costs and adjust daily staffing to meet activity levels.

Live forecast – A rolling revenue forecast that is updated regularly throughout the month based on changes in the market, new reservations, cancellations, and potential pickups. For historical days, the figures in the Live forecast are actuals.

MAD – Stands for mean absolute deviation.

MAPE – Stands for mean absolute percentage error.

MPI – Stands for market penetration index. This measures a hotel’s occupancy performance relative to an aggregated grouping of hotels. If all things are equal, a property’s MPI is 100 compared to the aggregated group.

ME – Stands for month end. This is the period between the first and last day of the month.

MTD – Stands for month to date. This is the period starting at the beginning of the current month and ending at the current date.

M&E – Stands for meetings & events and is a department in PMI.

Non-productive hours – Paid absence hours where labor costs are incurred but no work is performed, such as paid sick leave or training hours.

OCC – Stands for occupancy rate. This shows what percentage of your available rooms you’ve sold over a specific period.

OTB – Stands for on the books. This is the number of rooms currently booked in a hotel.

PAR stock – Stands for periodic automatic replacement, referring to the daily inventory a hotel or restaurant keeps to meet guest needs.

Pickups – The difference between OTB and the Live forecast in Rooms Live forecast.

PMI – Stands for performance management intelligence.

PMI index – A performance measurement tool for properties, indicating how well individual tasks are managed. A score of 8 is good; above 8 is very good.

PMI prediction – PMI’s auto-generated revenue forecast using machine learning and statistical models to analyze historical data and adapt to specific properties over time.

PMS – Stands for property management system.

Productive hours – Actual working hours being paid for.

Productivity – Output per labor hour, calculated by dividing the cost driver by the number of hours worked.

Productivity target – The productivity goal set per department based on historical performance.

Rate – Average salary per hour per department, calculated by dividing total labor costs by total hours.

R&P – Stands for revenue & productivity.

Revenue driver – Used to calculate revenue in profit centers. PMI bases predictions on historical patterns, seasonality, and algorithms.

RevPAR – Stands for revenue per available room, calculated by dividing total rooms revenue by available rooms.

RevPOLU – Stands for revenue per operational labor unit, showing revenue per hour worked. Calculated by dividing total revenues by total hours worked.

RGI – Stands for revenue generation index, also known as RevPAR index, a KPI for tracking performance.

Room nights – The number of rooms booked in a hotel.

SC – Stands for sales & catering.

SMART – An acronym for specific, measurable, achievable, relevant, and time-bound, commonly used in goal-setting and project management.

SMART forecast – A daily breakdown of the monthly productivity forecast based on activity levels, historical staffing patterns, and cost driver forecasts.

Source date – Historical dates that fall within the same season and on the same day of the week as the target date.

Static number – A number that does not change, such as a static forecast submitted monthly.

Staffing guide – A recommendation for daily labor hours per department based on machine learning predictions of forecasted activity, seasonality, and trends.

Target date – The date being forecasted.

TKS – Stands for timekeeping system.

TMS – Stands for time management system.

TrevPAR – Stands for total revenue per available room, calculated by dividing total hotel revenue by total rooms available.