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 that consists of 5 steps: plan, do, monitor, evaluate & learn, adjust. The main focus of ARM is continuous improvement to cope with uncertain environment. 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 (i.e., 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 worse compared to 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. The reason for this is to 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 give 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 which is directly related to everything needed to keep a business up and running. Examples for operating costs include items such as payroll, rent, office supplies, utilities, marketing, insurance, accounting, legal fees, and taxes.

Cost driver – Activity/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 who have a contracted/fixed number of hours per month. The positions must be filled regardless of business volume.

Flash report – An operations report where you get an overview of all daily revenue for all departments in PMI. The figures you see in this report are updated every morning. You will have all the information about what happened yesterday, what happened so far this month 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 which is a unit of measurement that compares the hours worked by employees to a full-time workweek. It’s a way to add up the hours of all employees, including full-time, part-time, and contract workers, into a measurable “full-time” unit.

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 who are 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, depending on your latest expectations due to changes in the market, new reservations, cancellations, and potential pickups. For historical days, the figures in Live forecast are actual figures.

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 (Occ) performance relative to an aggregated grouping of hotels (i.e., competitive set, market, submarket). If all things are equal, a property’s Occ Index or MPI is 100 compared to the aggregated group of hotels (historically described as “fair share”).

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

MTD – Stands for month to date. 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 – This is a paid absence, i.e., there is a cost for labor, but the hours have not been used for work in the department. This could be paid sick leave or hours for personnel that have been sent on training elsewhere.

OCC – Stands for occupancy rate. This shows what percentage of your available rooms you’ve sold on a given date or over a specific period. It’s one of the main KPIs used by hotels to measure their performance.

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

PAR stock – Stands for Periodic Automatic Replacement, which is everything that a hotel or restaurant keeps in stock on a daily basis to fulfil the guests’ needs.

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

PMI – Stands for performance management intelligence.

PMI index – Serves as a performance measurement tool for the property. The score indicates how well you perform the individual tasks that make up productivity management in PMI. A score of 8 is good and above 8 is very good.

PMI prediction – PMI’s auto generated revenue forecast. PMI uses a combination of machine learning (ML) and statistical models to automate forecasting of revenue and units (covers, room nights, guest nights etc.). It uses historical data to identify trends (seasons) and adapts to specific properties over time based on their activity.

PMS – Stands for property management system

Productive hours – Actual working hours that are being paid for.

Productivity – Output per labor hour. Productivity is calculated by dividing the cost driver for your department by the number of hours worked.

Productivity target – The productivity goal set per department. See what the department was able to achieve last year and try to achieve similar or better productivity for the coming month/year.

Rate – Average salary per hour and department. It can be calculated by dividing your total labor costs by your total hours.

R&P – Stands for revenue & productivity.

Revenue driver – This is what is used to calculate the revenue in a profit center. PMI makes daily suggestions in the different live forecasts with the help of a revenue driver. A historical pattern/seasonality/algorithm that PMI base the daily predictions on

RevPAR – Stands for revenue per available room. This number is found by dividing the total rooms revenue by the number of available rooms at the property.

RevPOLU – Stands for revenue per operational labor unit, meaning the hours worked—the property’s productivity. This is a vital KPI for your hotel as it shows your revenue per hour. It is calculated by dividing the total revenues for all profit centers by total hours worked from all cockpits.

RGI: Stands for revenue generation index. It is also known as RevPAR index and is one of the many key performance indicators (KPIs) hotel professionals use to track performance.

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

SC – Stands for sales & catering.

SMART – Is an acronym commonly used in goal-setting and project management to create clear and attainable objectives. It stands for:

• Specific: The goal should be clear and specific, answering the questions of who, what, where, when, why, and how.
• Measurable: The goal should have criteria for measuring progress and success, so you can track your progress and stay motivated.
• Achievable: The goal should be realistic and attainable, considering available resources and constraints.
• Relevant: The goal should align with broader objectives, ensuring it is worthwhile and fits within your larger strategy or priorities.
• Time-bound: The goal should have a clear deadline or time frame, creating a sense of urgency and helping to prioritize tasks.

SMART forecast – The SMART forecast in PMI is a daily breakdown of your monthly productivity/hours forecast. The SMART forecast allocates the monthly forecast to each day based on the expected activity levels at the hotel, using the cost driver forecast and historical staffing patterns. This can be used to plan staff schedules in line with the monthly forecast.

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. The static forecast is the monthly submitted forecast that is not changed during the month.

Staffing guide – The staffing guide is a recommendation of how many labor hours to schedule each day for each department. It uses machine learning (ML) to calculate how many productive hours are needed per day based on the forecasted activity at the hotel, depending on the day of the week, the season and trends. The Staffing guide uses the determined FTE in PMI (if it has been enabled in the cockpit’s settings) to suggest daily hours in units of 0.5 

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. TrevPAR is calculated by dividing the total hotel revenue by the total number of rooms.