Dynamic room pricing model for hotel revenue management systems

Dynamic pricing for hotel revenue management using price multipliers

“…Hotel revenue systems can be partitioned into two major groups (Abdel aziz et al, 2011;Ingold et al, 2000;Talluri and Van Ryzin, 2005). In the first group, the quantity control approach, the rooms are segmented by categories, such as by rate, guest type, room type, and/or length of stay.…”

An overview of revenue management and dynamic pricing models in hotel business

“…(2) the products or services with a limited period of sale, whose value deteriorates over time; (3) the ability to accept orders to be satisfied in the future; (4) low per product or service costs and high fixed costs; (5) fluctuating demand for products or services; (6) the ability to segment the market or customers, see Kimes [63] and Casado and Ferrer [22]. Many service companies possess these characteristics.…”

“…(1) what to forecast; (2) which degree of aggregation of the forecasting objects to choose; (3) to restrict or not to restrict the demand; (4) which historical period, called forecast base, to use; (5) which forecasting horizon to choose; (6) which forecasting method to use; (7) which accuracy is reasonable.…”

“…The problem is to determine numbers of orders which maximize the total income i∈I r i x i . Aziz et al [5] suggested an adaptation of this model for hotel revenue maximization. Let x * denote an optimal solution of the problem (3.14)- (3.17).…”

Dynamic Program Modeling for a Retail System Under Trade Credit

“…Tsao and Sheen [13] considered the dynamic pricing, promotion, and replenishment policies for a deteriorating item when payrnents werc permissibly delayed, They assumed that demand is a linear function of price and time. Aziz et al [1] Several numerical analyses were conducted to gain management insight into the structures of the proposed polieies. T'he results presented in Tables 3 to 5 are as follows: 1, When the inventory holding cost h increases, the optimal shelfspace quantity s//, the optimal ordering quantity q; , and the total network profit decline, but the optimal retail price p;･ inereases.…”