Hotel Revenue Management – Forecast & Pick Up

This video posted by Revenue Management

Forecasting as said is one part of the job and also an important one, because forecasting keeps you doing a good job. This applies to all other industries and all other companies as well. Every company needs to forecast their revenues, productions or performances. They do it to keep track, for stakeholder reports, saving costs and/or increasing revenues by using the forecast the right and proper way.

A forecast is a guideline and a status quo calculation at a certain point of time. In hotels we usually do it once a week, for a time window of at least 90 days. So coming back to the entry question of ‘what is a forecast’; Forecasting more less is a measurement. A measurement?!

A forecast report is a possibility to change a strategy AND a chance to improve existing strategies OR to completely implement a new strategy. A forecast is a control mechanism, which leads you to actions. If you see the budget (never the less revenue people don’t focus on budgets) as a goal and you have your latest forecast on hand, and then you compare both with each other – you see a result, which might vary from behind expectations, online with expectations and/or ahead of expectations. Depending on the result you can see if the team made so far a good job or not. If you are behind expectations in all segments – something goes completely wrong, or is the whole market suffering as well? Or was the budget a complete fail? Many questions are immediately popping up and leads you, as said previously to actions. If you wouldn’t do forecasting you wouldn’t even know where you stand. You can use the forecast to see your strengths and your weakness.