The hotel industry is highly competitive. For most companies, margins are low because of high overhead costs, which means that they have to be cost conscious and focus on keeping their rooms occupied. To get maximum competitive advantage, forecasting is essential to improving a hotel’s future performance.

1. What types of forecasts do hotels need?

2. What demand forecasting methods would you use for estimating room occupancy?

3. What challenges do hotels face when developing accurate roomoccupancy forecasts?