Electronic Resource
Oxford, UK
:
Blackwell Publishing Ltd
Decision sciences
33 (2002), S. 0
ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
Revenue Management Systems (RMS) are commonly used in the hotel industry to maximize revenues in the short term. The forecasting-allocation module is a key tactical component of a hotel RMS. Forecasting involves estimating demand for service packages across all stayover nights in a planning horizon. A service package is a unique combination of physical room, amenities, room price, and advance purchase restrictions. Allocation involves parsing the room inventory among these service packages to maximize revenues. Previous research and existing revenue management systems assume the demand for a service package to be independent of which service packages are available for sale. We develop a new forecasting-allocation approach that explicitly accounts for this dependence. We compare the performance of the new approach against a baseline approach using a realistic hotel RMS simulation. The baseline approach reflects previous research and existing industry practice. The new approach produces an average revenue increase of at least 16% across scenarios that reflect existing industry conditions.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.2002.tb01638.x
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