Hotel Revenue Glossary · Forecasting
Forecast Accuracy
A measure of how closely the forecast matched actual results, typically expressed as a percentage. A forecast accuracy of 95% means the prediction was within 5% of the actual outcome. Measured for rooms sold, ADR, and total revenue.
Why it matters: Forecast accuracy is a measure of the revenue manager's analytical credibility. Consistently accurate forecasts build trust with ownership and operations teams. Poor accuracy undermines confidence in pricing decisions and can lead to staffing misalignments.