What would happen if there are significant cancellations predicted in the cancellation forecast?

When there are significant cancellations predicted in the cancellation forecast, it indicates a potential decrease in the number of guests expected to stay at the hotel. In response to this change in demand, one effective strategy is to adjust the available transient supply. This involves altering the number of rooms that are made available for booking, which can help to align supply with the decreased demand.

By adjusting the transient supply, the hotel can mitigate the impact of cancellations by ensuring that it does not over-saturate the market with more available rooms than there are guests, which could lead to lower occupancy rates and reduced revenues. Additionally, this adjustment can help maintain a balanced pricing strategy, as fewer available rooms could potentially keep rates stable.

Overall, modifying the available transient supply in response to predicted cancellations is a proactive and strategic approach to managing occupancy and maximizing revenue potential.