The forecast is an estimate of what will actually be achieved. Its characteristics of the hotel forecast are:

  • The hotel forecast is typically limited to rooms’ revenue, although some properties will also forecast ancillary revenue but generally, this is done in a separate forecast document or page.
  • The forecast is updated at regular intervals depending on the type of property, this could be weekly, monthly or quarterly.
  • The forecast may be used for short-term operational considerations, such as adjustments to staffing, tactical pricing levels, marketing investment, and distribution.
  • Changes in the forecast do not impact performance-based compensation paid to employees.

The key difference between a budget and a forecast is that the budget is a plan for where a business wants to go, while a forecast is an indication of where it is actually going.

Source: https://www.accountingtools.com/articles/what-is-the-difference-between-a-budget-and-a-forecast.html

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