Today's Revenue Management thought:-
Forecasts are predictions about what should happen in the future based on information currently available - in an ever changing world. Forecasts are exercises of imagination - wishfull thinking - and are always questionable in their details.
Despite often being reliably incorrect, strategic value can be extracted from forecasts.
We just need to ask the right questions:
What do we believe is important and likely enough to influence a forecast ?
Macroeconomic uncertainties
Labor shortages
Spiralling energy costs
Where do we agree, and more interestingly, where do we disagree with the forecast?
Even if forecasts are based on the wrong assumptions, what do they indicate about the underlying trends ?
Identifying the hidden truths within forecasts will lead to a better understanding of the present and highlight early indicators of the future.
Have a profitable week.
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