I am looking for some suggestion on what a good approach would be for the following forecasting problem.
Problem statement: There are 100 hotels in a city and I have the monthly data on the total number of guests who stayed in the hotel for the past three years i.e. 36 data points for each of the 100 hotels. Using this data, I need to build a forecasting model to predict the number of visitors for the next 1 month for each hotel.
Some of questions I have are:
That hotels are competing against each other for visitors. So if the total number of visitors to a city remains roughly the same in a month then an increase in the number of visitors in one hotel should lead to a decrease in the number of visitors in another hotel. What kind of a time-series or any other model will take this into account?
In general what are some of the best practices for multi-category forecasting (in this example since we want to forecast for each, therefore each hotel can be considered as a category)