Revenue Forecasting

The following article describes revenue forecasting and analyses its processes.

What is "Revenue Forecasting"?

Forecasting means using our knowledge of the present to predict revenue in the future. Unless you are an experienced revenue manager, it can be difficult to translate the number of bookings and average daily rate (ADR) so far into a revenue prediction for the months ahead. RoomPriceGenie helps you predict future months’ revenue based on bookings so far.

⚠️ We currently do not split this into Occupancy and ADR forecasting, although this will come later.

How does the RoomPriceGenie forecasting work?

• The basis of the forecast is your budget. This is the starting point.
• We then use your target occupancy, along with your historic booking patterns, to predict how your bookings will come in.
• As reservations come in, we look at the price and pace of reservations compared to expectations and predict how the rest of the rooms will sell.
• We add up the value of the predicted remaining business, and this makes our forecast.
  
  

How do you set up forecasting?

• You will need to be on the Professional Plan or above. 
• Then you need to:
  1. Set your budget for the year ahead.
  2. Check whether Target Occupancy is a good target for you.
  ⚠️ These two values are used as the basis for your forecast.
  
• The forecasting will automatically take place at the next dashboard refresh when these values are in.

How good is the forecast?

We are trying to approximately predict future reservations but cannot make any guarantees. The predictions for the near term will be better than those further out. After 3 months,  it becomes very difficult to be accurate.

⚠️ In short, please use it only as a rough guide.

Does the forecast affect pricing?

No. The forecast is totally independent of the pricing. It is for informational purposes only.