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Models and Techniques for Hotel Revenue Management Using a Roling Horizon

Author

Listed:
  • Goldman, P.
  • Freling, R.
  • Pak, K.
  • Piersma, N.

Abstract

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.

Suggested Citation

  • Goldman, P. & Freling, R. & Pak, K. & Piersma, N., 2001. "Models and Techniques for Hotel Revenue Management Using a Roling Horizon," ERIM Report Series Research in Management ERS-2001-80-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:144
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    File URL: https://repub.eur.nl/pub/144/erimrs20020117130148.pdf
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    References listed on IDEAS

    as
    1. Gabriel R. Bitran & Stephen M. Gilbert, 1996. "Managing Hotel Reservations with Uncertain Arrivals," Operations Research, INFORMS, vol. 44(1), pages 35-49, February.
    2. Gabriel R. Bitran & Susana V. Mondschein, 1995. "An Application of Yield Management to the Hotel Industry Considering Multiple Day Stays," Operations Research, INFORMS, vol. 43(3), pages 427-443, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jörg Schütze, 2008. "Pricing strategies for perishable products: the case of Vienna and the hotel reservation system hrs.com," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 16(1), pages 43-66, March.

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    More about this item

    Keywords

    Revenue Management; mathematical programming; yield management;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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