07-11-2017 10:36 AM
I have a question on ARIMA Time Series model.
It is Hospitality industry historical booking data. If a customer make a booking, then Type = 'Booking'; If a customer cancelled the booking, then Type = 'Cancel'. And its original 'Booking' disappears.
Demand forecasting model uses ARIMA Time series model, and it uses historical demand as input only where Type = 'Booking' (Not using cancellation) Does it mean the output for demand forecatsing only inlude pure 'Booking' not 'Cancelation'?
07-11-2017 11:48 AM
This question is related to logic how to define variable being used for ARIMA model. If you are taking only "booking" then consider those customers who booked and showed up for further analysis.
07-11-2017 01:25 PM
Thank you for your reply! Sorry I didn't explain very clearly.
In my situation, if a customer booked and then canncelled, the row of 'Booking' disappears and a new row of 'Cancel' comes out.
If I just used 'Booking' as input, shall I assume my output for demand forecasting will only include 'Booking' part that already excludes cancellations if the model is good.