Anticipated Revenue meaning in hospitality

Expected revenue is the money a hospitality business expects to make over a period of time. This is based on historical data, current bookings and market trends. For hotels, it might be room rates, food and beverage sales, and other services. For restaurants, it might be covers, average spend per customer, and special events.

Expected revenue helps hospitality businesses plan. It informs decisions on staffing, inventory, and marketing. By forecasting future income, managers can allocate resources, set realistic goals, and identify shortfalls or opportunities. It's proactive, not reactive, which is key in the fast-paced hospitality industry.

Let's say you're the manager of a beachfront restaurant. It's winter, but you're planning for the busy summer season. You review last year's sales data, look at the number of advance bookings you have, and factor in the new outdoor seating area you've added. Based on this information, you forecast a 20% increase in revenue for the season. You use this to hire more staff, increase your stock orders, and invest in new equipment to handle the expected influx of customers. When summer arrives, you're ready to go.