Models and Techniques for Hotel Revenue Management Using a Roling Horizon

AbstractThis paper studies decision rules for accepting reservations for stays in a hotel based on deterministic and stochastic mathematical programming techniques. Booking control strategies are constructed that include ideas for nesting, booking limits and bid prices. We allow for multiple day stays. Instead of optimizing a decision period consisting of a fixed set of target booking days, we simultaneously optimize the complete range of target booking dates that are open for booking at the moment of optimization. This yields a rolling horizon of overlapping decision periods, which will conveniently capture the effects of overlapping stays.mathematical programming;Revenue Management;yield management

Airline Revenue Management with Shifting Capacity

Airline revenue management is the practice of controlling the booking requests such that the planes are filled with the most profitable passengers. In revenue management the capacities of the business and economy class sections of the plane are traditionally considered to be fixed and distinct capacities. In this paper, we give up this notion and instead consider the use of convertible seats. A row of these seats can be converted from business class seats to economy class seats and vice versa. This offers an airline company the possibility to adjust the capacity configuration of the plane to the demand pattern at hand. We show how to incorporate the shifting capacity opportunity into a dynamic, network-based revenue management model. We also extend the model to include cancellations and overbooking. With a small test case we show that incorporating the shifting capacity opportunity into the revenue management decision indeed provides a means to improve revenues.convertible seats;dynamic capacity management;revenue management;seat inventory control;shifting capacity

Yield Management under the Real Options Scheme for Optimal Decision Making in Hotels

Yield management is the process of actively managing inventory to maximize revenues. In this paper we present a model demised to apply yield management techniques using real options to the problem of optimal decision making when assigning rooms to hotel customers. Two different methods are proposed to carry out the evaluation: numerical resolution with the PDEs and Monte Carlo simulation. The achieved results using both methods are similar demonstrating the robustness of the simulation in this field and the model lends itself to be a tool for helping the hotel manager in his operational decision of whether or not giving a room to a potential client

Models and techniques for hotel revenue management using a rolling horizon.

This paper studies decision rules for accepting reservations for stays in a hotel based on deterministic and stochastic mathematical programming techniques. Booking control strategies are constructed that include ideas for nesting, booking limits and bid prices. We allow for multiple day stays. Instead of optimizing a decision period consisting of a fixed set of target booking days, we simultaneously optimize the complete range of target booking dates that are open for booking at the moment of optimization. This yields a rolling horizon of overlapping decision periods, which will conveniently capture the effects of overlapping stays.Revenue management;Mathematical programming;Yield management

airline revenue management

With the increasing interest in decision support systems and the continuous advance of computer science, revenue management is a discipline which has received a great deal of interest in recent years. Although revenue management has seen many new applications throughout the years, the main focus of research continues to be the airline industry. Ever since Littlewood (1972) first proposed a solution method for the airline revenue management problem, a variety of solution methods have been introduced. In this paper we will give an overview of the solution methods presented throughout the literature.revenue management;seat inventory control;OR techniques;mathematical programming

A survey of QoS-aware web service composition techniques

Web service composition can be briefly described as the process of aggregating services with disparate functionalities into a new composite service in order to meet increasingly complex needs of users. Service composition process has been accurate on dealing with services having disparate functionalities, however, over the years the number of web services in particular that exhibit similar functionalities and varying Quality of Service (QoS) has significantly increased. As such, the problem becomes how to select appropriate web services such that the QoS of the resulting composite service is maximized or, in some cases, minimized. This constitutes an NP-hard problem as it is complicated and difficult to solve. In this paper, a discussion of concepts of web service composition and a holistic review of current service composition techniques proposed in literature is presented. Our review spans several publications in the field that can serve as a road map for future research

The Role of Cybermediaries in the Hotel Market

The advent of the Internet changed the way buyers and sellers interact. Although access to information seems unlimited, non-expert agents find it difficult to identify the information they can confidently use. A third-party expert or a cybermediary (an intermediary in the cyberspace) can help sort out the information for the contracting partners. In this paper, we study the case of the online hotel market and the role of the cyber travel agent (CTA). We claim that CTAs encourage hoteliers to exert effort in service quality and provide empirical evidence that these hotels are compensated with a price premium.Cybermediaries, Internet, travel agents, reputation, hotel market, Agricultural Finance, Institutional and Behavioral Economics,