Manager of a large hotel in the city center has to decide whether to accept 60 additional reservations or not. If she accepts, it will be overbooked and face certain costs, if all people with reservations to show. The manager must forecast based on historical data, but of people holding reservations will be, and then decide, taking into account the costs, whether to take additional orders. The case can be used in the classroom for seasonality and exponential smoothing time series forecasting.
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by Samuel E Bodily Source: Darden School of Business 6 pages. Publication date: April 08, 1991. Prod. #: UV0353-PDF-ENG
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