Pearson New International Edition International pcl tp indd 1

MANAGING FORECAST DATA
Objective 5
Introduce the
relationship between 
room demand forecasts 
and pricing, and note 
the need to evaluate the 
effectiveness of the 
demand forecasting 
process.
Objective 3
Explain how an FOM 
can use PMS data 
relating to transient 
and group guests to 
make room demand 
forecasts.
Objective 2
Discuss how 
historical, current, and 
future data help the 
FOM to estimate 
room demand.
Objective 4
Review the basic types 
of reports that FOMs 
can use to monitor and 
manage their guestroom 
demand forecasts.
Objective 1
Review the role and 
responsibilities of the 
FOM in the 
management of rooms 
forecast data.
Managing Occupancy 
Forecast Reports
Using Predictive 
Data Sources
Tracking Room 
Demand
The FOM as 
Forecaster
• Impact on Pricing 
• Evaluation of
Effectiveness
Other Forecasting 
Issues: 
CHAPTER ROADMAP
213

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THE FOM AS FORECASTER
The PMS helps FOMs to perform a variety of tasks, one of the most essential of
which involves forecasting room demand. Despite its valuable assistance, however,
the PMS is not the crucial component in a hotel’s forecasting efforts. As suggest-
ed in Roadmap 1, the crucial component is the FOM who, literally, must be able
to see the future. In the past, hotel managers emphasized the need for forecasting
techniques only on nights when the hotel expected a sellout.