Demand Bidding Program and Its Application in Hotel Energy Management

Demand bidding program (DBP) is recently adopted in practice by some energy operators. DBP is a risk-free demand response program targeting large energy consumers. In this paper, we consider DBP with the application in hotel energy management. For DBP, optimization problem is formulated with the objective of maximizing expected reward, which is received when the amount of energy saving satisfies the contract. For a general distribution of energy consumption, we give a general condition for the optimal bid and outline an algorithm to find the solution without numerical integration. Furthermore, for Gaussian distribution, we derive closed-form expressions of the optimal bid and the corresponding expected reward. Regarding hotel energy, we characterize loads in the hotel and introduce several energy consumption models that capture major energy use. With the proposed models and DBP, simulation results show that DBP provides economics benefits to the hotel and encourages load scheduling. Furthermore, when only mean and variance of energy consumption are known, the validity of Gaussian approximation for computing optimal load and expected reward is also discussed

Two-stage Optimization for Building Energy Management

AbstractContinuous increase of energy demand on one hand and integration of large number of renewable energy sources on the other require advanced control strategies to provide an uninterrupted service and guarantee high energy efficiency. Utilities and transmission system operators permanently supervise production facilities and grids to compensate any mismatch between production and consumption. With the gradual change from a centralized system with a few large power plants to a decentralized and distributed generation based on many renewable energy sources, local energy management systems can contribute to grid balancing. This paper presents a building energy management which determines the optimal scheduling of the different components of the local energy system. The two-stage optimization is based on the minimization of an economic function subject to the physical system constraints and uses a receding horizon approach. The proposed building energy management is implemented using mixed integer linear programming and applied in simulation to a hotel with photovoltaic installation and battery system

Migration, Unemployment and Net Benefits of Inbound Tourism in a Developing Country

International tourism is increasingly viewed as one of the best opportunities for a sustainable economic and social development of developing countries. There is also an increasing concern from public policy makers as to whether mass tourism coastal resorts can play a catalytic role in the overall economic development and improve the real income of their community. In this paper, we present a general equilibrium model which explicitly takes into consideration specific features of some developing countries (e.g. coastal tourism, dual labour market, unemployment, migrations, competition between agriculture and tourism for land) to analyse the ways by which an inbound tourism boom affects this kind of country, in particular its real income. We define the conditions under which an inbound tourism boom makes developing countries residents worse off.Economic impacts, General equilibrium model, Inbound tourism, Migration, Unemployment, Developing countries

Tourism Immiserization: Fact or Fiction?

Tourism plays a major part in the development strategies of both developing and developed countries because of the alleged potential of generating foreign exchange, economic growth and welfare enhancement (Sinclair and Stabler, 1997; Sinclair, 1988). Consequently, in several countries a considerable amount of resources is allocated to further promote the tourism sector in a hope of reaping more economic benefits. However, it is still debatable whether tourism is beneficial for the tourist-receiving country or not. While empirical studies (Adams and Parmenter, 1994; Zhou et al., 1996, Baaijens et al., 1998; Blake, 2000; Blake et. al., 2003; Dwyer et al., 2003), argue that tourism expansion is beneficial to the economy, theoretical studies (Copeland, 1991; Chen and Devereux, 1999; Hazari and Nowak, 2003; Hazari et al., 2003; Nowak et al., 2003) posit that tourism expansion can be immiserizing. This paper critically reviews the theoretical and empirical literature to identify the sources via which tourism expansion can benefit or harm the economy. The issues are then empirically investigated using a CGE model for Mauritius to identify the conditions under which tourism expansion can be immiserizing.Tourism, Immiserization, Welfare, Economic growth

Revenue Management, Dynamic Pricing and Social Media in the Tourism Industry: A Case Study of the Name-Your-Own-Price Mechanism

The application of revenue management (RM) is changing more rapidly than ever before, driven as an important factor of the daily operation to keep prices competitive and to create real-time optimal pricing. In the age of the Internet and social media, negotiated fixed rates have become outmoded. Consumers now have access to online rate comparisons and real time reviews. They think more strategically when making purchasing decisions. Thus, they become more demanding. This research provides an empirical study of revenue management and pricing with an emphasis given to the hospitality industry. The aim of this research is to examine the gap between the theoretical approach and the empirical analysis, the rationality between the implementation of dynamic pricing approaches and the impact on the customer. Furthermore, the research examines the perception of consumers’ willingness to pay when using the Name-Your-Own-Price (NYOP) mechanism, which allows customers to have a greater influence on the amount they are prepared to pay. Instead of posting a price, the seller waits for a potential buyer’s offer, which he or she can either accept or reject. Finally, this study examines, whether the use of social media plays a decisive role in the online purchase environment used by the hospitality sector and the effect it has on a consumer’s willingness to pay. Accordingly, hotel revenue managers will be able to use the findings of this study to effectively plan their short-term, and long-term pricing strategies to generate a stronger revenue management performance for their property, namely to increase the RevPAR (revenue per available room). The research can be useful to businesses, as empirical data and tests were employed to determine what kind of impact the different pricing policies have on the long-term profit optimization. These practical and theoretical elements of the field reinforce each other‚ as well as to a large extent, the constructive interplay of theory and practice. The research is twofold, the holistic approach, which discusses the development of the theoretical dimension, is complemented by the practical analysis of the collected data of the surveys. This approach ensures the relevant observation of ‘real-time’ data and the evaluation of the set of hypotheses. The study conducted two large scale interrelated structured surveys. The first structural survey (NYOP) provides a better understanding of the final consumer, by using the name-your-own-price mechanism and by observing the extended role of social media in the booking procedure. Hypotheses were tested and in the second survey in-depth data from revenue managers and executives working across the tourism industry was collected, in an attempt to measure the use of pricing strategies within the industry. The research contributes to the theory by empirical testing how the extended RM objectives influence RM and pricing. It provides a clear picture of the necessary elements for a successful implementation of pricing strategies. Finally, the study has implications for the consumer. Thus, the researcher investigates consumer’s perception to the NYOP model and the expanding role of social media to the consumer-booking pattern

The case for offshore wind farms, artificial reefs and sustainable tourism in the French Mediterranean

As the French government strives to achieve their offshore renewable energy target, the impact of offshore wind farms on coastal tourism in the Languedoc Rousillon is now being questioned. To assess this issue, a choice experiment was undertaken to elicit tourist preferences for wind turbines at different distances from the shore. We also examined whether potential visual nuisances may be compensated by wind farm associated reef-recreation or by adopting a coherent environmental policy. The findings indicate that age, nationality, vacation activities and their destination loyalty influence attitudes toward compensatory policies. Two policy recommendations are suggested. First, everything else being equal, wind farms should be located 12 km offshore. Second, and alternatively, a wind farm can be located from 5 km and outwards without a loss in tourism revenues if accompanied by a coherent environmental policy and wind farm associated recreational activities.

Dynamic Pricing, Advanced Metering, and Demand Response in Electricity Markets

Presents an overview and analysis of the possible approaches to bringing an active demand side into electricity markets. Part of a series of research reports that examines energy issues facing California

Policy additionality for UK emissions trading projects: a report for the Department of Trade & Industry

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