How do forecasting and pricing decisions interact?

Forecasts quantify expected demand, cancellations, and seasonality. Pricing algorithms then use those signals to test scenarios such as early‑bird discounts or surge premiums. When fresh data shows a forecast miss, positive or negative, the system feeds the delta back into new price recommendations. In this way, forecasting and pricing form a feedback loop: better forecasts sharpen pricing moves, and observed sales at new prices refine future forecasts. Break the loop and both accuracy and profitability suffer.