Forecasting In Hrm

Introduction
Hospitality industry managers, as in many other businesses, use a variety of financial tools in order to exercise control over the business and achieve the desired return on investment.
In this analysis we will take a general look at some of the most common financial tools and techniques used in hotel management.

Basic tools
Some of the basic tools are:
Forecast
Forecast is used to anticipate future performance. Accurate forecasting is essential to taking decisions regarding pricing, staff, ordering the right amount of food and beverages, cleaning supplies, and so on.
Forecasts reflect latest data and trends and make predictions that help managers to run operations according to the latest available data. Getting the right

It includes sales, labour costs and overhead budget costs.

• Cash budget – tracks projected sources of cash and disbursements

• Capital budget – focuses on the amount of money planned to be spent on capital assets such as equipment and refurbishment. This includes assets like the hotel building itself, furniture, kitchen equipment, vacuum cleaners, coffee and ice machines for example.
Across the hospitality industry the facilities vary greatly and so does the construction of a budget. The size of the business makes a considerable difference. A small hotel or bed and breakfast does not operate on the same scale as a huge resort that can resemble a city and is a very complex operation. In fact, these large resorts include several types of hospitality businesses: hotel, restaurant, fast food parlour, concert venue, conference facilities, outdoor activities, etc. A separate budget for each of them will be

Collecting data from the previous year can be useful, but following the newest trends at the same time is extremely important too.
Revenue management
Revenue management helps the hotel manager to optimize room prices, improve customer service and develop new products according to newest trends in customer behavior. Revenue management is often referred to as “the art of selling the right room to the right customer at the right time for the right price”. It is a complex scientific technique that combines Statistics, Customer Relationship Management and Operations research. Analyzing past data statistics it helps in forecasting demand and determine the right prices. Nowadays, revenue management software is widely used to do this calculations
Cost control
Cost is defined as the amount to be paid or given up in order to get