World Panel
Viewpoint18 March 2020

Has forecasting become a lost art?

Revenue Optimization

— 10 experts shared their view

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Has forecasting become a lost art?
This viewpoint was created by
Scott Dahl, Program Director, Master’s Degree in Hospitality Strategy and Digital Transformation at Les Roches Global Hospitality Education
Damiano Zennarosupplier view
Director, Global Advisory Services at IDeaS Revenue Solutions

The forecast is a fundamental piece of the hotel puzzle because it helps hoteliers, owners and stakeholders better understand the future, challenge themselves, support operations from a staffing and cost perspective and build credibility for the business. On its own, however, a forecast is just a number, and a constantly shifting one at that. Like a puzzle, a forecast requires many other elements in order to be complete. Specifically, two: clean, relevant data and a clear strategy. The first is delivered by technology—something impossible to do manually because of the vast, ever-increasing amount of available data. The second can only be done by humans, revenue managers in this case. This is where the synergy—not dichotomy—between human and machine wins.

Advanced revenue management system (RMS) solutions have the power to adapt to any change in the market and compare similar exceptional behaviours in the past at a rate unachievable by humans. The machine algorithms continuously learn at a faster pace day after day, and accuracy will only improve going forward.

In disruptive times like these, a hotel's perseverance depends on precise forecasting through predictive analytics, enabling revenue managers to rethink and adapt current and future strategies, which can be then fed back into their respective RMS, completing the forecasting puzzle.

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