Hotel Revenue Glossary · Segmentation

Source Code

A code in the PMS that identifies how the reservation was received — the booking channel or source of business. Common source codes distinguish between direct phone, website, OTA (by partner), GDS, walk-in, and travel agent bookings.

Why it matters: Source codes enable channel performance analysis. By tracking source codes, revenue managers can determine which channels deliver the most volume, the highest ADR, and the best net revenue — data essential for optimizing distribution strategy.

Worked example: Last month's source codes: brand website 420 nights at A$192 (A$80,640), OTA-A 310 nights at A$205 (A$63,550), voice 95 nights at A$214 (A$20,330). OTA-A looks like your strongest rate until you net the 15% commission — A$63,550 becomes A$54,017.50, an effective A$174.25 a night, A$17.75 below the website. Shifting just 30 of those nights to direct at A$192 adds A$532.50 in net revenue without selling one extra room.

Common mistake: Treating source code and rate code as interchangeable. A guest can book the corporate negotiated rate code through an OTA, or the public BAR through your voice team. Read them as a pair — rate code tells you what they paid and under which rules, source code tells you who delivered them and what that delivery cost.

All glossary terms Rate Code Distribution Channel Market Segment