Forecasting in hotels is predicting future occupancy, revenue and demand by date, using historical patterns, current bookings on the books, pace and market events. Accurate forecasts drive pricing, staffing and purchasing decisions.
A forecast typically combines the same-time-last-year picture with current pickup trends and known demand drivers such as fairs, concerts or holidays. Revenue systems automate much of this, but local knowledge of the market still corrects what the data cannot see.
Forecast accuracy should itself be measured. Comparing forecast to actual by week reveals systematic bias, such as chronic optimism for shoulder dates. An inaccurate forecast quietly damages everything downstream, from rates set too early to kitchens staffed for guests who never arrive.
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