Reference no: EM133545303

Forecasting is an important part of the Revenue Management process. This exercise will familiarize you with two different forecasting models and help you understand why a Revenue Manager's experience and knowledge is also key.

The Plaza hotel is an independent city centre property with 122 rooms. The past month performance has been quieter than expected and the hotel is now moving into a key business period.

There are several events happening over this period which will drive demand in the area, some repeating from last year and some new.

The General Manager has asked you to put together a forecast for the next calendar month, to identify any periods of low or high demand to ensure all revenue opportunities are maximized.

The hotel works with 5 market segments:

· Corporate Individual

· Groups

· Transient Non Negotiated

· Transient FIT

· Other

Using one or both of the two forecasting methods in the Revenue Management module:

Put together a one month forecast for your hotel, by market segment.

Identify two periods with forecasted occupancy of 100% + and recommend which inventory controls you would put in place to maximize occupancy. Review this by market segment if necessary.

Identify two periods of forecasted occupancy of below 65% and give recommendations of which segment to target with value added promotions.

Questions:

1. Create a forecast for one month by market segment using the #pace model, %pace model or a combination of both. You should review figures and manually override the forecast where necessary. Justify your final figures.

2. From your designed forecast, identify two periods when demand is forecasted to be over 100%. What inventory restrictions would you recommend putting in place to mazimize these opportunities?

3. From your designed forecast, identify two periods when low occupancy is expected. Which market segment would you recommend to target these periods and why?