What is hotel forecasting and why is it important?

A hotel forecast predicts future occupancy, revenue, and other operational metrics. It helps hoteliers plan staffing, pricing, inventory, and budgeting with data-driven insights.

What types of forecasts do hotels typically use?

Common forecast types include: Demand (unconstrained): the theoretical potential demand, Revenue / room revenue: expected revenue from rooms, Operational forecasts: support staffing, procurement, and departmental planning, Financial forecasts: integrate revenue & cost projections to estimate profitability.

Which factors should I include in my hotel forecast model?

Typical inputs include historical booking data, booking pace, seasonality, cancellation/attrition rates, special events, competitor pricing, economic indicators, and external demand drivers.

What KPIs should be reported alongside hotel forecasts?

Key metrics include occupancy, ADR (average daily rate), RevPAR, booking pace, cancellation rates, room nights sold, and forecast variance (actual vs forecast).

Home BlogHotel Forecast: Essential Guide to Hotel Business Planning

Hotel Forecast: Essential Guide to Hotel Business Planning

Oct 11, 2025

Mika Takahashi