1.
FORECASTING

2.
QUICK GLANCE TO FORECASTING
• A forecast is a studied prediction of future.
• One of the skills for a front office professional is
to forecast the availability of rooms for the given
particular period of time.
• This forecasting period could range from 3-days,
10- days, quarterly, half yearly or annually.
• Forecasting helps in the planning occupancy and
resultant room revenue.

3.
WHAT ARE THE PURPOSES OF FORECASTING..??
• It sets a standard for the reservation agent while
booking or taking in the reservations.
• It determines the role of sales and marketing team to
supplement gaps in desired occupancy.
• It protects the hotel from over booking.
• It helps housekeeping to gear its work force.

4.
• It gives accurate idea of rooms that are not available for
sale, especially that are out of order.
• It helps all the departments to plan their leave
schedule, because employees will not be issued leaves
during peak periods.
• It determines the pricing strategy whether to quote
maximum rates or minimum rates.
• The chef would know how much food to order to meet
the demand. Over stocking perishable and costly items
will lead to spoilage and will higher the food costing.
WHAT ARE THE PURPOSES OF FORECASTING..??

5.
INFLUENCES ON FORECASTING
INFLUENCES ON FORECAST
Forecasts have two important factors that influence the Room Revenue
INTERNAL F
ACTORS EXTERNAL FACTORS

6.
INTERNAL FACTORS INFLUENCING FORECASTING
• Historical patterns of occupancy in a given data.
• Special promotions launched by Sales and Marketing
team to stimulate the promotion.
• Realization of long term bookings.
• Pattern of no-show.
• Percentage of guaranteed bookings against the
percentage of non- guaranteed bookings.
• Percentage of rooms committed to volume business.
• Patterns of target market segments.

7.
• Special events in the city.
• Special promotions by travel agents and tour
groups.
• History of city occupancy patterns during a
particular period.
EXTERNAL FACTORS INFLUENCING FORECASTING

8.
HOW DO WE OBTAIN FORECAST DATA..??
• Number of saleable rooms.
• Number of rooms booked.
• Number of rooms are under repair.
• Number of expected departures.
• Percentage of walk-ins based on previous data.
• Percentage of no-shows based on past data.
• Percentage of over-stay based on reception check.
• Percentage of under-stay based on past data.
• Number of Stay-over.

9.
WHAT IS THE FORMULA OF FORECASTING..??
• Armed with the information the front office professional can now execute a
formula that gives her/him the number of rooms available for sale.
• Forecast Formula
Total number of guest rooms
Less (-)
Less (-)
Less (-)
Less (-)
Plus (+)
Plus (+)
Number of rooms under repair
Number of Overstays
Number of Stayovers
Number of Reservations
Number of No- Shows
Number of rooms available for sale
That equals to (=)
Number of rooms available for sale

10.
LETS SUM UP..!!
By this presentation we came to know-
• Forecasts are a prediction of the room position in
any given period of time.
• It helps the front office agent in many ways but
principally to anticipate the flow of rooms so as to
generate tactics to meet low occupancy days and
full house days.
• It is a useful tool to ensure that guests get their
rooms and those without rooms are accommodated
to bring them into a fold to make them their
regular clients.
• To calculate the number of guest rooms that are
available for sale.