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Models and techniques for hotel revenue management using a rolling horizon

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Author Info
P. Goldman ()
R. Freling ()
K. Pak ()
N. Piersma () (FEW-Econometrie en besliskunde)
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.

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File URL: http://www.eur.nl/WebDOC/doc/econometrie/feweco20011214153931.pdf
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Publisher Info
Paper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number 247.

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Date of creation: 2001
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Handle: RePEc:dgr:eureir:2001247

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Related research
Keywords: Revenue management yield management mathematical programming;

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