ABSTRACT
This chapter discusses the nature and limitations of forecasting. It introduces some main patterns in historical data. The chapter also introduces some main approaches to forecasting, and discusses the factors that determine the selection of forecasting methods. The job of the forecaster will then to try as much as possible to link this historical information with the most appropriate forecasting tool available in order to come up with the forecasts. The seasonal pattern exists when the series of data fluctuates in a regular direction according to a particular period. Quantitative forecasting methods are those forecasting methods that seek to predict the future outcomes based on the use of complex mathematical and statistical modelling, measurement and research. The forecasting is primarily based on volumes as expressed in rooms sold or guests served. The chapter concludes with a brief discussion on the practically of forecasting within the hospitality industry.
