Beyond accuracy: The advantages of the k-nearest neighbor algorithm for hotel revenue management forecasting
Timothy Webb,
Misuk Lee,
Zvi Schwartz
et al.
Abstract:Revenue management (RM) systems forecast demand and optimize prices to maximize a hotel’s revenue. The RM function operates in coordination between a system and an analyst. Systems provide recommendations while analysts review the forecasts and prices to approve or make subjective adjustments. In many cases the recommendations are a “black box” with little insight regarding how recommendations are derived. This article proposes the k-Nearest Neighbor (k-NN) algorithm as a forecasting approach that can transiti… Show more
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