An accurate demand forecast can help a hotel optimise pricing, inventory and operations, resulting in increased revenue and profitability.
Demand forecasting is also very useful for defining more targeted and effective marketing strategies allowing hotels to reach their target market effectively and increase bookings and revenue.
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Benefits of demand forecasting for hotel revenue
Accurately forecasting future demand for hotel rooms can help hotels increase revenue in several ways. Here are the most important ones:
Setting the right room rates
By accurately forecasting demand, a hotel can set rates that reflect the expected level of demand. This can help the hotel maximize revenue by charging a higher price when demand is high and a lower price when demand is lower.
Accurate demand forecasting can also help hotels optimize their inventory by forecasting which room types and rate plans will be in highest demand. This can allow hotels allocate rooms appropriately, ensuring that rooms that are in highest demand are available to guests who are willing to pay a premium for them.
Planning for promotions and discounts
Accurate demand forecasting can also help hotels plan for promotions and discounts by identifying periods of lower demand and offering discounts or promotions to entice guests to book during these times.
Accurate demand forecasting can also help hotels increase efficiency by identifying periods of low demand and reducing staffing levels or closing certain amenities during these times. This can help hotels save costs and increase profitability.
Benefits of demand forecasting on hotel marketing strategy
Accurately forecasting future demand can help hotels plan more effective marketing strategies in several ways. Here are the most notable ones:
Targeting the right audience
By accurately forecasting demand, hotels can identify their target market and tailor their marketing efforts accordingly. For example, if a hotel expects demand to be high from business travelers, it can focus its marketing efforts on business travel publications or websites.
Creating targeted promotions
Accurate demand forecasting can also help hotels create targeted promotions that are tailored to specific segments of their target market. For example, if a hotel expects demand to be high from families during a certain time period, it can create promotions and offers that are specifically designed to appeal to families.
Allocating marketing budget effectively
Accurate demand forecasting can also help hotels allocate their marketing budget more effectively by identifying periods of high and low demand and focusing marketing efforts on the periods of highest demand.
Identifying new marketing channels
Accurate demand forecasting can also help hotels identify new marketing channels that may be effective in reaching their target market. For example, if a hotel expects demand to be high from travelers who book online, it may want to focus on online marketing channels such as social media or search engine advertising.
Lybra Assistant RMS is a cutting edge revenue management system designed to help hoteliers forecast demand, optimise pricing, increase revenue and define successful hotel marketing strategies. Contact us now for a free demo!