Hotel revenue management: Benefits of simultaneous overbooking and allocation problem formulation in price optimization
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Hotel Revenue Management: Simultaneous Overbooking and Allocation
This research introduces a novel approach to hotel revenue management by simultaneously optimizing overbooking and room allocation decisions within the price optimization framework.
Published in: Computers & Industrial Engineering, Volume 137, Pages 106073 (2019)
DOI: 10.1016/j.cie.2019.106073
Citations: 34
Key Contributions
- Development of integrated mathematical models for simultaneous overbooking and allocation decisions
- Demonstration of revenue improvements through coordinated decision-making
- Risk management strategies for hospitality industry pricing
Methodology
Our approach combines optimization techniques with revenue management principles to create a unified framework for hotel pricing decisions.
Results
The simultaneous approach shows significant revenue improvements compared to traditional sequential decision-making processes in hotel revenue management.