Forecasting

Helps management to anticipate periods of demand and expect unit sales and revenue

Projection based on informati on available at the time of its preparation

Forecasting

1. Improperly trained and inexperienced staff

2. Lack of full, accurate data on which to base a proper forecast

Challenges of the industry

Constrained

Unconstrained

Demand

4. Poor understanding and use of hotel computer systems and capabilities

3. Changing market conditions

How can hotels handle forecasting?

Forecast

Long-term

Short-term

Budget

Periods of time

Why is forecasting important?