Revenue management using dynamic pricing strategies: modelling and simulation

Abstract

Studies in the field of revenue management have a history of many decades. This practice has grown from its origins in air travel to its current status as a major business practice in a wide range of industry areas including hospitality, energy, retail, manufacturing, and many more. Majority of the research going on in this sector is focussed on creating specific solutions. This narrow-minded approach is making the implementation of revenue optimisation in real life a tedious process. Demand is dynamic in nature and the market is having high volatility. Creating a revenue management model based on dynamic pricing which can stay reliable in multiple scenarios with fluctuating demand is the essence of this work. It also searches for simplistic models which show flexibility and efficiency with the help of market data. Initially the system will be fabricated based on a synthetic data relying on hotel management curves. Later on, the model will be moulded to be applicable to various industries involving booking functionalities.