FORECASTING

It is an act of estimating, calculating, or predicting the

conditions in the future, based on the analysis of
available data.
BENEFITS OF FORECASTING

1. Project future volume of business and the revenue

2. Helps the FOM to plan the following:
• Staff requirements
• Minimum requirement of inventories
• Maintenance and replacement requirements
• Special arrangements to be made
 BENEFITS OF FORECASTING contd.

3. Provide necessary data to RM to practice yield management

4. RM will able to make selective overbooking, based on
reservation forecast.
5. Helps SM to predict room sales activities
6. Forecast data reveal the sold out dates, which will ensure the
reservation agent doesn’t accept reservations for those days
 Data required for forecasting
1. Product knowledge
2. A good judgment about what could happen in the future
3. Profile of the target market to which the hotel is catering
4. Events that are scheduled in the area during the forecasted period
5. Percentage of no-shows
6. Overstays & under-stays
7. Future plans for renovation or addition of more rooms
8. Future plan for opening any new property
9. Knowledge of competitor’s room status
10. Knowledge about the competitor’s plans
11. Cancellation statistics
12. Wash out percentage.
RECORDS REQUIRED FOR FORECASTING ROOM
AVAILABILITY

1. The number of arrivals on each day

2. Number of walk ins
3. Number of under-stays
4. Number of check outs
5. Number of no shows
6. Number of overstays
7. Cancellations