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Revenue Management Glossary

Mean Absolute Percentage Error (MAPE)

The Mean Absolute Percentage Error of your hotel is a way of measuring the accuracy of your forecast. Whilst the Mean Absolute Deviation (MAD) allows you to calculate the disparity between your predictions and the reality of bookings, your MAPE allows you to put a percentage value to that calculation. 

This allows for better comparison of hotels and time periods within your comp set and can be calculated by doing the following:

MAPE = MAD ÷ Actual values 

See also:

Mean Absolute Deviation (MAD)

Forecast

 

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