Booking horizon forecasting with dynamic updating: A case study of hotel reservation data
A highly accurate demand forecast is fundamental to the success of every revenue management model. As is often required in both practice and theory, we aim to forecast the accumulated booking curve, as well as the number of reservations expected for each day in the booking horizon. To reduce the dimensionality of this problem, we apply singular value decomposition to the historical booking profiles. The forecast of the remaining part of the booking horizon is dynamically adjusted to the earlier observations using the penalized least squares and historical proportion methods. Our proposed updating procedure considers the correlation and dynamics of bookings both within the booking horizon and between successive product instances. The approach is tested on real hotel reservation data and shows a significant improvement in forecast accuracy.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wen-Chyuan Chiang & Jason C.H. Chen & Xiaojing Xu, 2007. "An overview of research on revenue management: current issues and future research," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 1(1), pages 97-128.
- Weatherford, Larry R. & Kimes, Sheryl E., 2003. "A comparison of forecasting methods for hotel revenue management," International Journal of Forecasting, Elsevier, vol. 19(3), pages 401-415.
- Peter R. Winters, 1960. "Forecasting Sales by Exponentially Weighted Moving Averages," Management Science, INFORMS, vol. 6(3), pages 324-342, April.
- O'Connor, Marcus & Remus, William & Griggs, Kenneth, 2000. "Does updating judgmental forecasts improve forecast accuracy?," International Journal of Forecasting, Elsevier, vol. 16(1), pages 101-109.
- Haipeng Shen & Jianhua Z. Huang, 2008. "Interday Forecasting and Intraday Updating of Call Center Arrivals," Manufacturing & Service Operations Management, INFORMS, vol. 10(3), pages 391-410, July.
- Weinberg, Jonathan & Brown, Lawrence D. & Stroud, Jonathan R., 2007. "Bayesian Forecasting of an Inhomogeneous Poisson Process With Applications to Call Center Data," Journal of the American Statistical Association, American Statistical Association, vol. 102, pages 1185-1198, December.
When requesting a correction, please mention this item's handle: RePEc:eee:intfor:v:27:y::i:3:p:942-960. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.