How is System Forecast Built in Atomize?
Data-Driven Occupancy Forecasts
- Atomize generates occupancy forecasts using a blend of historical data and current/future data from your Property Management System (PMS) and competitors pricing behavior.
Detailed Revenue Analysis
- Our system ingests data at the reservation level, enabling it to distinguish between accommodation revenue and other revenue streams.
- The forecast is made at day and room type level
Comprehensive Forecast Adjustments
- The forecast accounts for potential future cancellations, no-shows, group bookings, and adjustments. As a result, forecasts for certain date ranges may occasionally be lower than the current On-The-Books (OTB) data.
Demand-Based Price Recommendations
- Price recommendations are driven by forecasted demand rather than current OTB. This means a day with low occupancy today might still receive a high price recommendation if future demand is anticipated to be strong.
Current Pricing Influences Forecast
- Revenue forecasts are based on current pricing strategies. If your current pricing is not optimal, the forecast may reflect inaccuracies.
Competitor Pricing Alignment
- Ensure your selected competitors have pricing strategies comparable to your own. Including competitors with significantly different pricing can skew market, demand, and price sensitivity analyses.
Fine-Tuning Your Forecast
Differences between your estimates and the system’s forecasts can arise from the system's distinct data analysis and statistical modeling. Fine-tuning may be required for better alignment:
!!Regularly review system forecasts and report to support@atomize.com significant discrepancies from your own forecasts, as these differences impact price recommendations!!
By understanding and leveraging these insights, you can optimize your revenue management strategy and enhance your property's financial performance.