Overview on Forecasting Revenue in Thynk

Overview on Forecasting Revenue in Thynk

Learning Objectives:

  1. Understand why forecasting is important
  2. Discover how your teams can Forecast Revenue in Thynk

What is Forecasting? and Why is it important in the Hospitality industry?

Forecasting revenue in the hospitality industry involves predicting future income based on historical data, current market trends, and customer behaviors. This helps businesses estimate potential earnings for Guest Room revenue and Non-Guest Room revenue (such as food, beverages, events, and other services).


Forecasting is crucial for managing operations, optimizing pricing strategies, and ensuring resource allocation aligns with demand. Accurate forecasts enable hotels to enhance guest satisfaction, maximize profits, and stay competitive by anticipating occupancy levels and adjusting offerings accordingly.


There are few different types of forecasts: 

  1. When planning for the next fiscal year, leadership teams will use historical data from current and previous years along with benchmark data, industry trends and more 

  2. When looking at a specific time period, such as 3 months out, forecasting can be used to predict how much additional revenue will come in 

  3. When looking at the pipeline of all open bookings, forecasting can be used to predict what percentage of all revenue in the pipeline will close into won business 

  4. For closed-won business, forecasting can be used to predict actual revenue before contracts and reservations are finalized 


Types 1 and 2 are typically done in external systems and are displayed in Thynk’s analytics as benchmark metrics. 


Types 3 and 4 are available for Sales Manager at the booking level.




Forecasting Revenue in Thynk

In Thynk, customers can forecast both Guest Room Revenue, Event Revenue, and conversion probability.  

Guest Room Forecasts

With Thynk’s enhanced Room Block Manager, there is an option to configure the system to display forecasting. This allows sales managers to predict the total number of rooms they expect to be picked up on a given night. 
When sales managers use this forecast, they are able to pace themselves towards their meeting revenue targets and goals.

Event Forecasts

Additionally, as of October 2024, we’ve introduced a new feature called 'Average Checks.' Property admins can specify an average check size by function type in up to 5 revenue categories. For example, a banquet may have an average Food check size of $75/pp, an average Beverage check size of $60/pp and an average Service charge of $10/pp. 


This is particularly helpful when you I either don’t yet know the specific F&B selection a customer will make, or you are am just sending an initial proposal out.


Conversion Forecasts

Each property admin can set a default conversion probability for a given booking status, which the saleswhich sales manager can then override based on their level of confidence about a particular booking. 


When used in combination with average checks, this is a powerful way to gain more visibility into the revenue potential of your sales pipeline. 


Resources

  1. Overview on the Average Checks feature
  2. How to set up Average Checks as an admin
  3. How to use Averages Checks as a user

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