[eng] This study explores issues related to the forecasting in revenue management
in the Mechanism of predicting tourism arrivals for the Balearic Islands. Specifically,
the study uses queries from a web search data (Google Trends) in order to
demonstrate the forecasting power of such measures compared to traditional
methods. I developed a database formed by the two main tourist volumes, namely,
Germany and UK and then, compare each model with its corresponding baseline to
figure out whether the Google Trends indicator can increase accuracy of the
prediction. After estimating the four different models, I selected the baseline model
for Germany, and the alternative for UK. Consequently, Granger causality test
indicated a positive causality between variables suggesting good estimating results.
Besides, I calculated the Mean Absolute Percentage Errors (MAPE) for each model
and the results showed a considerable improvement of the Google Trends models
compared to baseline models. The results provide some hints for increasing
company efficiency and enhance policy maker decision making.