A comparison of time series and econometric models for forecasting restaurant sales

David Allen Cranage, William P. Andrew

Research output: Contribution to journalArticle

16 Citations (Scopus)

Abstract

Historically, forecasting of restaurant sales in the hospitality industry has been 'judgementally' based. Given the importance of both short-term and long-term sales forecasts for effective restaurant management, we have investigated various forecasting models for accuracy and efficiency. The results of the study show that for the actual restaurant sales in this sample, time series models (specifically Box-Jenkins and exponential smoothing models) performed as well or better in forecasting sales than an econometric model. Since time series models (especially exponential smoothing models) are typically more economical in terms of time and skill levels of the users, the results of this study have important implications for the use of forecasting techniques in the restaurant industry.

Original languageEnglish (US)
Pages (from-to)129-142
Number of pages14
JournalInternational Journal of Hospitality Management
Volume11
Issue number2
DOIs
StatePublished - Jan 1 1992

Fingerprint

econometrics
time series
smoothing
comparison
Econometric models
Exponential smoothing
Restaurants
Time series models
industry
Box-Jenkins
Restaurant management
Hospitality industry
Sales forecasting
Restaurant industry

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

Cite this

Cranage, David Allen ; Andrew, William P. / A comparison of time series and econometric models for forecasting restaurant sales. In: International Journal of Hospitality Management. 1992 ; Vol. 11, No. 2. pp. 129-142.
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A comparison of time series and econometric models for forecasting restaurant sales. / Cranage, David Allen; Andrew, William P.

In: International Journal of Hospitality Management, Vol. 11, No. 2, 01.01.1992, p. 129-142.

Research output: Contribution to journalArticle

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