Hotel Revenue Glossary · Demand

Forecast

A prediction of future room demand, typically expressed as expected rooms sold, occupancy, ADR, and revenue for each future date. Forecasts combine historical patterns, current bookings-on-the-books, and known events.

Why it matters: The forecast drives every proactive revenue decision. Pricing, availability controls, staffing, and marketing campaigns are all calibrated against the forecast. A good forecast is the single biggest enabler of effective revenue management.

Worked example: Saturday, four weeks out: 78 rooms OTB in a 130-room hotel, and the last six Saturdays each picked up an average of 31 rooms across their final 28 days. That points to 109, or 84%. Twelve of the 78 belong to a group block that has washed 15% every time this organiser has run it, so take 1.8 rooms back off and call it 107. At the A$241 you expect, the night is worth A$25,787.

Common mistake: Rebuilding the forecast from scratch every time it is wrong. A number that moves six rooms every morning cannot be used for staffing, purchasing or a rate decision, and nobody can tell whether the pickup assumption or the wash assumption failed. Change one input at a time and keep the previous version to compare.

All glossary terms Pace OTB (On The Books) Booking Window (Lead Time)