What is the meaning of hotel room forecasting in the hospitality industry?
Any hotel seeking to maximise profits, should look ahead and try to predict a future situation. One way to do this in an organised manner, is to create something called a Forecast. Hotel forecasting can be done at any time of year, by any kind of establishment in the hospitality sector (not only large hotels but also small, independent hotels) across the world.
Revenue forecast formula
The best way to Forecast future bookings and demand is to use a calculation – to ask a relatively simple question: ‘At our hotel, what is the likely expected revenue in 2019, based on our revenue management team’s analysis of figures from 2018 (occupancy and average rate)?’
A Forecast of hotel revenue need not only be based on a whole year, of course. Sometim...