Forecasting Demand

Abstract

Forecasting is a vital part of hospitality operations because it allows businesses to make imperative decisions, such as pricing, promotions, distribution, scheduling, and arranging facilities, based on the predicted demand and supply. This chapter covers three main concepts related to forecasting: it provides an understanding of hospitality demand and supply, it introduces several forecasting methods for practical application, and it explains yield management as a function of forecasting. In the first section, characteristics of hospitality demand and supply are described and several techniques for managing demand and supply are addressed. In the second section, several forecasting methods for practical application are explored. In the third section, yield management is covered. Additionally, examples of yield management applications from airlines, hotels, and restaurants are presented.

Citation

Yoo, M.(. and Yang, S. (2021), "Forecasting Demand", Szende, P., Dalton, A.N. and Yoo, M.(M). (Ed.) Operations Management in the Hospitality Industry, Emerald Publishing Limited, Leeds, pp. 71-94. https://doi.org/10.1108/978-1-83867-541-720211004