Benefits of Forecasting

The ability to produce accurate daily and weekly forecasts is the main reason most properties purchase LMS. By producing accurate forecasts, properties also receive the following benefits:

• Service improves when each department uses LMS's short-term forecast for KBIs (such as occupied rooms, meals, or guests) and adjusts schedules to meet projected business volumes.
• Labor costs are controlled when labor is scheduled on an as-needed basis according to LMS's statistical forecasts.
• Food costs are controlled when forecasts are used to accurately predict business volumes for restaurants.

Impact of Forecasting

In a hotel, LMS uses historical information and current book counts to statistically generate a forecast for transient rooms, guests, arrivals, and departures. Group and contract information are manually input. LMS does not produce a group and contract forecast because each group behaves in a unique fashion. LMS does, however, incorporate the group and contract segment projections into the process. This provides a complete property forecast and assesses the impact of group and contract sales on transient room availability.

The group and contract predictions, and the resulting guest counts, have an impact on revenue center forecasts. These projections are developed by determining an outlet's capture ratio of available guests (in-house guests minus in-house guests not available to the outlet) and assessing historical volumes.

Once generated, carefully review the room forecast and the revenue center forecast. Consider other relevant information that cannot be incorporated into the statistical model. Edit the forecast as needed. A reliable seven-day forecast for rooms and revenue centers lets you plan properly, ensuring high levels of guest service while still controlling labor costs. The forecast reports show both LMS's forecast and your forecast, which lets you track labor accurately.