An introduction to helpful forecasting methods for hotel revenue management

Abstract

Revenue management is a key tool for hotel managers’ decision-making process. Cutting-edge revenue management systems have been developed to support managers’ decisions and all have as an essential component an accurate forecasting module. This paper aims to introduce new time series forecasting models to be considered as a tool for forecasting daily hotel occupancies. These models were developed in a state space modeling framework which is capable of tackling seasonal complexities such as multiple seasonal periods and non-integer seasonality.