Forecasting and Availability Controls in Hotel Revenue Management Action Plan

SHA532: Forecasting and Availability Controls in Hotel Revenue Management
Cornell University School of Hotel Administration
Forecasting and Availability Controls in Hotel Revenue
Management Action Plan
© 2016 eCornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners.
1

SHA532: Forecasting and Availability Controls in Hotel Revenue Management
Cornell University School of Hotel Administration
Complete the grid below.
Key Business
Problem(s)
Hotels and other businesses must learn to control demand in
order to use revenue management successfully. This involves
expertise in forecasting, rate setting, and the use of availability
controls.
For your action plan, describe a key business problem related to
forecasting and availability that you are interested in addressing.
Include in your description any aspects of the problem that could
be related to forecasts and forecast errors, rate setting, length-of-
stay controls, historical booking data, or demand estimates.
One of the primary revenue management system
strategies that is used in hotel industry is the
forecasting structures. It enables hotel personnel to take
account of the hospitable format of the hospitality
industry. There are several problems with the
forecasting abilities of Hospitality Management and
hospitality industries (Xie 2019). They have to learn
several areas where they must learn to control the
demand and other uses of the revenue management.
Forecasting rate setting and availability controls are one
of the major addressing areas that it should constituted
the occupancy forecast problems. For a particular
business dealing with the hospitality industry, there lies
several aspects of business problems. The key business
problems can be listed as follows:
 The primary challenge for accurate forecasting for
revenue management consists of the prediction for
the exact features for the number of rooms, stay
over rooms, the walking guest rooms and
departure rooms for early departure. The system
of the forecast must be insured with historicized
data forecasting (Fiori and Foroni 2019). This
forms the challenge as the day of week has to be
historicized constantly. Not just the proper
updating for the day of week, season and even
type needs to be updated as well.
 There are the challenges regarding the
approaches that hotels adopt for forecast and
demand forecasting, which approves of both the
methods of historical booking and advance
booking models.
 There are the challenges of estimations where
hypothetical automated system has the ability of
© 2016 eCornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners.
2

SHA532: Forecasting and Availability Controls in Hotel Revenue Management
Cornell University School of Hotel Administration
Complete the grid below.
Key Business
Problem(s)
Hotels and other businesses must learn to control demand in
order to use revenue management successfully. This involves
expertise in forecasting, rate setting, and the use of availability
controls.
For your action plan, describe a key business problem related to
forecasting and availability that you are interested in addressing.
Include in your description any aspects of the problem that could
be related to forecasts and forecast errors, rate setting, length-of-
stay controls, historical booking data, or demand estimates.
One of the primary revenue management system
strategies that is used in hotel industry is the
forecasting structures. It enables hotel personnel to take
account of the hospitable format of the hospitality
industry. There are several problems with the
forecasting abilities of Hospitality Management and
hospitality industries (Xie 2019). They have to learn
several areas where they must learn to control the
demand and other uses of the revenue management.
Forecasting rate setting and availability controls are one
of the major addressing areas that it should constituted
the occupancy forecast problems. For a particular
business dealing with the hospitality industry, there lies
several aspects of business problems. The key business
problems can be listed as follows:
 The primary challenge for accurate forecasting for
revenue management consists of the prediction for
the exact features for the number of rooms, stay
over rooms, the walking guest rooms and
departure rooms for early departure. The system
of the forecast must be insured with historicized
data forecasting (Fiori and Foroni 2019). This
forms the challenge as the day of week has to be
historicized constantly. Not just the proper
updating for the day of week, season and even
type needs to be updated as well.
 There are the challenges regarding the
approaches that hotels adopt for forecast and
demand forecasting, which approves of both the
methods of historical booking and advance
booking models.
 There are the challenges of estimations where
hypothetical automated system has the ability of
© 2016 eCornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners.
3