Total Revenue Forecast
Total Revenue Forecast is a forward-looking projection of all revenue a property expects to generate across every department — not just rooms, but also food and beverage, spa, parking, meetings and events, and other ancillary outlets — over a defined future period. It extends traditional rooms-only forecasting into a property-wide view, supporting total revenue management (TRM) decisions where the value of a booking is judged by its full on-property spend rather than room rate alone.
Formula
Total Revenue Forecast = Forecast Room Revenue + Forecast F&B Revenue + Forecast Ancillary & Other Revenue
Each component is typically built from forecasted demand, occupancy, and average spend per guest or per occupied room.
Example
For an upcoming month a 150-room resort forecasts €420,000 in room revenue, €180,000 in food and beverage, and €90,000 in spa, parking, and activities. Its Total Revenue Forecast is €690,000. A revenue manager evaluating a low-rate group request would weigh not only the room contribution but the group's expected F&B and ancillary spend before accepting or displacing it.
Why it matters
Optimizing rooms revenue in isolation can leave money on the table — or destroy value. A guest segment paying a lower room rate but spending heavily on dining and services may be more profitable than a higher-rate segment that spends nothing else. A reliable Total Revenue Forecast lets revenue managers make smarter acceptance, displacement, and pricing decisions, align staffing and inventory across departments, and set budgets that reflect the property's complete commercial picture.
Related
- TRevPAR (Total Revenue per Available Room) — the realized metric that a Total Revenue Forecast aims to predict
- Unconstrained Demand — a key input when projecting future revenue potential
- Group Displacement — a decision that benefits from a total-revenue rather than rooms-only view
- Pace Report — tracks how bookings (and revenue) are materializing against the forecast