This study examines empirically the use of two time series models, Box-Jenkins and exponential smoothing, for forecasting hotel occupancy rates. The models are fitted and tested using actual monthly occupancy rates for a major center-city hotel. Both models show a high level of predictive accuracy. Since these models are relatively easy to implement, they should be very useful in actual hotel operations and other applications such as yield management.
All Science Journal Classification (ASJC) codes
- Tourism, Leisure and Hospitality Management