Homework: Revenue Forecasting
Complete a revenue forecast for the month
Attached is a forecasting sheet for XYZ hotel for the month of May. It is now March, and your average booking window for Transient is 30 to 45 days out. Taking the previous forecast as a starting point, please complete the forecast section based on the following assumptions:
1. Your forecast target for the month of May is to be at least 2.2% higher in revenue than your budget.
2. You just lost a big group for the month of May( 450 Room nights at $409 ADR). This will have a big impact on your revenue.( If you lost the group recently it means that this group was considered in your previous forecast. Make sure you reflect this loss in your forecast)
3. You have 100 Room nights at $320 ADR in tentative, which will become Definite by the end of March. This will help you mitigate some of the group loss. (assume this group was not considered in your previous forecast)
4. You just had a travel agent book your most expensive suite. 10 Room nights for $5000 a night (This will belong in Retail segment)
5. Assuming there is no more group activity that will close between now and the end of May, What other changes should you make in transient to mitigate for the group loss and still achieve your targeted growth.
6. Explain your numbers in detail and how you will achieve them ex. Launch promotions, packages, promote a discounted rate, etc) Remember you are currently within your main booking window. (When you are withing your booking window you can make the most impact)
Submit your detailed explanation to the numbers in a word document. Comment on your variance to Budget, to the previous forecast and actual 2013(this means your variance to last year)
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Forecasting.rar