The short-term rental vocabulary, defined
Co-hosting and revenue management come with their own language. Here are the terms we use every day — explained plainly, so you can read a performance report or a management agreement and know exactly what each number means.
ADR (Average Daily Rate)
The average price paid per booked night over a given period, calculated as room revenue divided by the number of nights sold. ADR tells you what your nights are worth when they sell — but it says nothing about how often they sell, which is why it is always read alongside occupancy and RevPAR.
RevPAR (Revenue per Available Rental)
Revenue divided by the total nights a unit was available to book — occupied or not. RevPAR combines rate and occupancy into a single figure, making it the truest measure of how well a property earns. Across the portfolio we manage, RevPAR has averaged roughly +22% over 2022–2026; results vary by property, market and season.
Occupancy
The share of available nights that were actually booked, expressed as a percentage. High occupancy at the wrong price erodes revenue; low occupancy at a premium rate leaves nights empty. The goal is never occupancy alone but the right balance of rate and fill — which is what RevPAR captures.
OTA (Online Travel Agency)
A third-party booking platform such as Airbnb, Booking.com or Vrbo that lists your property to travelers and processes reservations in exchange for a commission. Most short-term rentals distribute across several OTAs at once, which is why keeping availability and rates in sync across channels matters.
Channel Manager
Software that connects one property to multiple OTAs and keeps availability, rates and reservations synchronized in real time — so a booking on one platform instantly blocks the dates everywhere else. It is the safeguard against double-bookings when you sell the same unit on several channels.
PMS (Property Management System)
The system of record for reservations, guest details, calendars and operational workflows. Smoobu is a common PMS in the German market. A PMS holds your bookings; it is distinct from a pricing tool (which sets rates) and from an automation layer such as CENTCOM (which coordinates guest communication, housekeeping, finance and owner reporting on top of it).
Dynamic Pricing
Adjusting nightly rates automatically in response to demand signals — seasonality, day of week, local events, lead time and competitor pricing — rather than holding a fixed rate year-round. We run dynamic pricing through PriceLabs under RM Revenue so rates track real demand instead of guesswork.
Co-Hosting
A model in which an operator runs a property on the owner's behalf — listings, pricing, guest communication, cleaning coordination and reporting — while the owner retains title and control. RM Hosting is a full-service co-hosting operation: we handle day-to-day operations for a commission of 15–25% of net revenue, with no base fee. We are a verified Airbnb Co-Host and an official Smoobu Ambassador, managing 30+ units.
Zweckentfremdung (change-of-use / short-let regulation)
German municipal rules that restrict using residential housing for purposes other than long-term living — including short-term rental. Where a city has enacted a Zweckentfremdungssatzung, hosts typically need a registration or permit number and must observe day-count or usage limits. Requirements differ from city to city, so local compliance is checked before any unit goes live.
Kurtaxe (local tourist tax)
A per-guest, per-night levy charged in designated tourism and spa regions, collected by the host and remitted to the municipality — often in return for guest amenities such as a visitor card. It is separate from your nightly rate and from any city bed tax, and where it applies it must be declared and passed through correctly.
Still unsure how a term applies to your property? We are happy to walk through your numbers and show you exactly where they land. — read the guide.
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