Forecasting for Radisson Hotels
Introduction:
Forecasting has long been important to marketing practitioners. Today forecasting is one of the most important activities in the company. Marketing forecasting allows company to understand the implications of changes in demand and sales. In other words forecast is prepared to reflect the anticipated results, with projected sales, profitability and cash flow (Mercer 1998). Forecast may and will influence future marketing plans. Managers ' forecasting needs vary considerably. They may need to forecast the size and growth of a market or product category. When strategic issues are being considered, they need to forecast the actions and reactions of key decision makers such as competitors, suppliers, distributors, governments and their own actions. These actions can help to forecast market share.
The purpose of this report is to evaluate use of forecasting methods in marketing and its positive or negative affect in relation to marketing. It is recognized that forecasting may bring positive as well as negative effect towards the overall marketing strategy and implementation. Common reasons for negative affect may include lack of clear processes and methodologies overreliance on error - prone spread sheets, and limited incentives for accuracy. Marketing forecasting will depend on factors like consumer demand, market share, competitors and product uniqueness. Tourism demand forecasting is crucial in helping businesses and organizations to allocate limited resources appropriately and stay competitive (Song, Witt, & Li 2008).
In this report I will discuss forecasting process for Radisson Hotel brand. Radisson is known as one of the most successful hotel brands worldwide. Radisson has created very successful marketing strategy. The paper will then focus on how Radisson, one of the largest hotel chains, uses demand forecasting under conditions of uncertainty, most specifically those relating to the pattern and rate at which customers demand products.
Forecasting has long been important to marketing practitioners. Today forecasting is one of the most important activities in the company. Marketing forecasting allows company to understand the implications of changes in demand and sales. In other words forecast is prepared to reflect the anticipated results, with projected sales, profitability and cash flow (Mercer 1998). Forecast may and will influence future marketing plans. Managers ' forecasting needs vary considerably. They may need to forecast the size and growth of a market or product category. When strategic issues are being considered, they need to forecast the actions and reactions of key decision makers such as competitors, suppliers, distributors, governments and their own actions. These actions can help to forecast market share.
The purpose of this report is to evaluate use of forecasting methods in marketing and its positive or negative affect in relation to marketing. It is recognized that forecasting may bring positive as well as negative effect towards the overall marketing strategy and implementation. Common reasons for negative affect may include lack of clear processes and methodologies overreliance on error - prone spread sheets, and limited incentives for accuracy. Marketing forecasting will depend on factors like consumer demand, market share, competitors and product uniqueness. Tourism demand forecasting is crucial in helping businesses and organizations to allocate limited resources appropriately and stay competitive (Song, Witt, & Li 2008).
In this report I will discuss forecasting process for Radisson Hotel brand. Radisson is known as one of the most successful hotel brands worldwide. Radisson has created very successful marketing strategy. The paper will then focus on how Radisson, one of the largest hotel chains, uses demand forecasting under conditions of uncertainty, most specifically those relating to the pattern and rate at which customers demand products.
References: • Archer, B. H. (1994), pg. 114 Demand forecasting and estimation: Travel, tourism and hospitality research. 4th ed., New York: Wiley • Bright, J., (1973), pg • Chris Robinson, J. Christopher Holloway, (1995), pg. 25. Marketing for tourism. 3rd ed. Singapore: Singapore Publishers. • David Mercer. (1998), pg. 25. Marketing Strategy: The Challenge of the external environment. 1st ed., Musselburgh: Scotprint Ltd. • Frechtling, Douglas C • Kimes, S.E. (1999), pg. 50 Group Forecasting Accuracy in Hotels, Journal of the Operational Research Society. • Law, R. (1998), pg. 10. Room Occupancy Rate Forecasting: A Neural Network Approach. International Journal of Contemporary Hospitality Management, (6):234-239. New York: Routledge • Rajopadhye, M. et al (2001), Forecasting Uncertain Hotel Room Demand, Information Sciences, 132, 1-11. • Song, H., S.F • Weatherford L, et al (2001), Pg. 64 Forecasting for Hotel Revenue Management Testing Aggregation against Disaggregation, Cornell HRA Quarterly • Weatherford, L.R., and S.E • Witt, S.F., Witt, C.A. (1995), Forecasting Tourism Demand: A Review of Empirical Researches. Int. Journal of Forecasting, 11, 447-475. • www.radisson.com