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Revenue Management Glossary



A calculation or estimate of future events, especially coming weather or a financial trend.

How to use it

A Revenue Forecast would be an estimate of what revenue could come in for a certain period of time. Hoteliers use this to estimate their yearly and monthly revenues, which can then be combined with other variants, such as Day of the Week or Segments, amongst others. It is used to set a realistic goal, which can help accounting have an idea of cash inflows and outflows, setting targets and be able to compare performance.



Related Terms

Average Daily Rate (ADR), Booked to capacity
I like to use Segmented Forecasts in order to understand which segments are working when compared to others, but also compared to my expectations. Depending on the results, you can then create actions to revamp demand for certain falling segments or ride the wave of your most successful ones.

José Miranda

Jose Miranda