A comparative analysis of machine learning and stochastic methods for hotel occupancy forecasting

Anshori, Mohamad Yusak and Herlambang, Teguh and Krisprimandoyo, Denpharanto Agung and Othman, Zuraini and Azmi, Mohd Sanusi (2025) A comparative analysis of machine learning and stochastic methods for hotel occupancy forecasting. Journal of Revenue and Pricing Management, -. pp. 1-9. ISSN 1476-6930

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Abstract

In highly competitive hotel markets, accurate demand forecasting plays a critical role in supporting effective revenue and pricing management decisions. This study conducts a comparative analysis between a machine learning approach that is Random Forest optimized with a Genetic Algorithm (RF–GA) and a stochastic method, the Kalman Filter (KF), to forecast hotel occupancy rates. Using monthly operational data from a three-star hotel in Surabaya, Indonesia, covering the period from April 2018 to May 2024, both models were evaluated based on forecasting accuracy measured by Root Mean Square Error (RMSE). The results indicate that the RF–GA model achieved substantially lower forecasting error (RMSE = 0.0320) compared to the Kalman Filter (RMSE = 0.5602), demonstrating that machine learning techniques can more effectively capture nonlinear demand patterns within hospitality data. From a managerial perspective, more accurate occupancy forecasts enable hotel revenue managers to optimize room pricing, anticipate demand fluctuations, and plan resources more efficiently. This research contributes to the revenue management literature by bridging computational intelligence with practical forecasting strategies in the hospitality sector, particularly within emerging market contexts.

Item Type:	Article
Uncontrolled Keywords:	Forecasting, Hotel occupancy, Kalman filter, Random forest, Revenue management
Divisions:	Faculty of Information and Communication Technology
Depositing User:	Sabariah Ismail
Date Deposited:	18 Aug 2026 04:13
Last Modified:	18 Aug 2026 04:13
URI:	http://eprints.utem.edu.my/id/eprint/30311
Statistic Details:	View Download Statistic

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