In hotels, a forecast is an estimate of future business: occupancy, average daily rate, revenue and the number of arrivals and departures for the coming days, weeks and months. It is built from historical data, the bookings already on the books, booking pace, market trends and upcoming events. Revenue, front office, housekeeping and food and beverage teams use it to plan rates, staffing and purchasing. Guest communication across various channels, such as email, webchat and WhatsApp, follows the same rhythm: a busy arrival week also brings more guest questions, so many hotels plan their pre-arrival messages and offers around the forecast too. Good forecasting improves efficiency, helps enhance customer satisfaction and supports the hotel's overall results.
What is a forecast in the hospitality industry?
A forecast in the hospitality industry refers to the process of predicting future demand for accommodations, services, and amenities based on historical data, market trends, and other relevant factors. It helps hotels and other establishments plan resources, staffing, and pricing strategies to meet expected demand effectively.
How do hotels typically create forecasts?
Hotels typically create forecasts by analysing historical occupancy rates, booking patterns, market trends, and upcoming events that may impact demand. They may use forecasting software or spreadsheets to generate forecasts for room occupancy, revenue, and other key performance indicators. Additionally, input from sales and marketing teams, as well as industry benchmarks, may inform the forecasting process.
