Demand forecasting provides a strong fo… (part 2), Key Trends for 2012 - New Era of Personal Learning (You Tube), Dr. Gabor Forgacs, HospitalityEducators.com Faculty and Speakers, Recommended Reading: Revenue Management: Maximizing Revenue in Hospitality Operations, Getting the Most out of your Hotel Franchise Investment - Part 2, SAMPLE Banquet Alcohol Requisition Form, Value of Face-to-Face Meetings Resonates Even More Today, The Case for Face-to-Face Business Meetings, Revenue Management Must Overcome Several Challenges to Create a Bigger Impact, Four Basic Hotel Electronic Marketing Tools to Use in 2011, Questions I Wish You Would Ask Me™ Bill Hurley, International Hotelier, 7 Legal Steps You Will Need to Complete to Build Your New Restaurant, Talk Radio Featuring HospitalityEducators.com, How to boost sales and stand out from the crowd - 10 marketing tips for restaurants, Marketing Is Not The Primary Thing…It's The Only Thing, Channel Management: an ongoing challenge for hotels - part 1, Here Come The Profits | The 2012 edition of Trends® Survey, Expanding Your Markets - Building A Diverse Customer Base, Top ten meeting and incentive tips and trends for hoteliers, Common ADA Problems at Newly Constructed Lodging Facilities, Revenue Management Should Mean Planning and Action at Every Type and Size Hotel (Part 2 of 2). It’s only through an analysis of total demand that you can optimize your profits, capturing yield opportunities at those points when demand exceeds supply and where it becomes necessary to turn away customers that are less profitable in favor of those who may be more willing to pay higher rates. For example, Andrew, Cranage, and Lee (1990) use the Box-Jenkins method and the exponential smoothing method to forecast the monthly occupancy of a hotel. A good demand forecast can help make the most out of the ‘peaks’ and better avoid the ‘valleys’ through proper room rate decisions, staff allocation, property maintenance and hotel operations. While hotels have explored various forecasting methods, majority of those models Demand forecasting provides a strong foundation for an effective growth strategy, and it leads to a number of downstream positive effects on metrics and bottom-line income. External factors which need to be looked at include: – Events in the area including concert dates, sports events and other events that generate demand for hotel rooms. As part of Cendyn, Rainmaker offers a complete set of software services for the industry, aligning marketing, sales and revenue teams to optimize their strategies and drive performance and loyalty across their business units. 2Thompson, Gary. Hotel Forecast Model and Tool According to your yield opportunities, you may decide of a more or a less developed forecasting tool. 3. A critical aspect of revenue management is a firm's ability to predict future demand. However, forecasting hotel demand has always been challenging, for reasons we’ll explore below. The goal of a successful hotel is not necessarily to achieve 100 percent occupancy, but rather to optimize revenue. 301 certified writers online Nowadays, forecasting has taken a different turn by adding new variables/data to the above mentioned ones such as: prices of the hotel's competitive set, city demand, event automated entry, and airline/airport passenger's future booking pace. Depending of the size of your hotel, involve team members in the forecasting process i.e. How Do You Make The Decision If You Need A Person Dedicated To Selling The Services Of Your Hotel? Ensure your on the books is correct with systematic checks when building your forecast… With that said, the one set of data you have that can truly be relied upon … Whereas findings from the forecast can be used for the benefit of the entire hotel. 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