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Revenue Management Glossary

Pick-Up Forecast

Definition

A pick-up forecast is a report that outlines the projected pick-up for a period of time in the future, using current data and trends. It tracks the pace at which rooms are being booked – including booking patterns, such as booking lead times, peak booking periods and periods of high cancellations – for future dates, giving hoteliers the ability to better understand the anticipated revenue and occupancy for the same period of time.

By using demand data to make future strategic pricing decisions, hoteliers are able to establish more accurate prices and more effectively allocate inventory across the various distribution channels, resulting in an increase in bookings and revenue.

How to use it

If bookings are picking up faster than anticipated in the pick-up forecast, that indicates a high level of demand; as a result, hoteliers should increase room rates to maximise revenue. Conversely, if the pick-up pace is slower, hoteliers should lower rates or offer targeted promotions to stimulate bookings and increase revenue.

Formula

N/A

Related Terms

Booking pace, hotel bookings, occupancy, revenue management, ADR, RevPAR, forecasting
“The pickup forecast is a very valuable revenue management tool, as it gives you all of the information that you’ll need to make more effective, data-based decisions on pricing and inventory. I highly recommend that all hotels – whether they have a revenue management department or not – start using a pickup forecast as the data that it will provide is a must-have for hotels to remain competitive in today’s highly dynamic travel market.”

Babynke Kingma

Babynke Kingma