Forecasting Case
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is sales generated in the past, report of past hotels data, customer response to change in rates. It then gives a proper idea as to how the sale can be generated. It is actually to predict the sales of roomsas to how many rooms can be sold in this slow period which are the last two weeks of December rather to take reservations at the very moment. By predicting so the hotel can use stratergies which may let them increase the rates by a small margin as compared to the normal rates and also give good offers and service to guests so that the expectations of the are exceeded and the guest would come back again.
Poor forecasting may lead to improper planning and that would result in an increase in the
cost of business eventually a loss.
As there is a bullock cart race festival to be held in December forecasting should be
done about three months prior to the event to have a proper sale.
The Government of Karnataka Tourism would advertize the about the event 2-3 months
in advance, the hotel should also start forecasting immediately to avoid failure in
Planning.
The company can use various methods of revenue management:
Use more various revenue management stratergies by collecting right data
Proper analysis of data such as customer responses to various pricing stratergies.
Keeping a track of other hotels in the market as to what stratergies are being used by them to maximize occupancy
Historical data
Historical data consists of all data of minimum past two years. It includes all the data of
the guest i.e. the guest history, their feedbacks and appreciation letters, sales made, financial data, guest profile,etc. This helps in providing extraordinary service to the guest
The history of the guest is important as it shows the entire profile of the guest like if he is a business traveler, corporate,VIP , regular guest ,etc. Reguler guest and few guests who have a high profile have to be given certain special services so as to keep them coming back and building customer loyalty
The historical data also shows the sales and business at that particular time. If the hotel
is in loss at a particular time then, the data helps in analyzing the reasons that caused the loss to happen and make changes accordingly
Pricing strategies
While making pricing stratergies the the factors to keep in mind are:
The customer
The property
The market