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Hospitality & Short Term Rental Revenue Forecasting

Modeling demand and revenue from occupancy, booking lead time, weekday and weekend patterns, seasonality and price bands to guide pricing and flag high demand periods early.

Demand forecastingRevenue managementCapacity planningPythonTableau
92%Forecast accuracy
8.1% MAPE
78%Avg modeled occupancy
▲ 6 pts at peaks
+12%Revenue from price banding
vs flat rate
21 daysLead time signal window
early demand flag

Actual vs forecast demand, with confidence band · combo + band

Forecast line and 90% band over a 12 week holdout, against actual bookings (bars).

Demand by month & weekday · heatmap

Seasonality and day of week together, the brightest cells are peak pricing windows.

Occupancy by day of week · bar

Weekend demand sets the pricing ceiling.

Seasonality & price tier · area + stepped line

Demand index by month with the recommended rate tier stepping alongside.

Forecast driver importance · radar

How much each feature contributed to the demand model.

The question

A short term rental operator priced units on gut feel and reacted late to busy periods. They needed a forecast that said, weeks ahead, how much demand was coming and what nightly rate each period could support.

How I did it

  • Built the inputs in Python from the booking history: how far ahead people book, weekday or weekend, the month and the season.
  • Trained a demand forecast with a confidence band and tested it on a held back 12 weeks, landing near 8% average error.
  • Read season and day of week together on a heatmap, then matched the forecast demand to sensible price bands.
  • Checked which inputs mattered most on a radar, and put the forecast and the suggested rates into a Tableau dashboard.

What the analysis found

  • Lead time was the strongest early signal, pickup pace 21 days out reliably flagged peaks.
  • Flat pricing undercharged weekends and peaks and overcharged slow midweek windows.
  • Demand based pricing produced a +12% modeled revenue gain at similar occupancy.
Recommendation: Replace flat nightly rates with demand based pricing driven by the forecast, and alert when 21 day pickup signals a peak so rates move up before inventory sells out cheaply.

Tools

Python · Excel · Forecasting · Tableau / Power BI

Built on a simulated hospitality booking dataset so the forecasting and pricing method is fully visible.