What is the meaning / definition of Forecast 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. 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.
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 2016, based on our revenue management team's analysis of figures from 2015 (occupancy and average rate)?'
A Forecast need not only be based on a whole year, of course. Sometimes it can be useful to create a month-to-month, or even a week-to-week forecast!
Forecasting is something that no hotel should ignore, as it can help monitoring and foreseeing trends in consumer behaviour and therefore accurately gauge the demand of each season.
You can find more detailed information on Forecasting on our Blog: click here