Hotels are often faced with seasonal fluctuations in demand. To maximize capacity, accurate forecast for the number of customers and the average room rate is crucial. The demand for hotel rooms, besides being affected by seasonal fluctuations, is also affected by changes in the pattern of the traffic flow. Hotels have to depend on the area attractiveness and the availability of events and festivals to ensure all-year round profitability. This case examines the effectiveness of management decisions on forecasting its sales revenue.