Article2002

Service Package Switching in Hotel Revenue Management Systems

Nagesh N. Murthy · Vaidyanathan Jayaraman

26 citations0/0 files storedDecision Sciences

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Forecasting Techniques and Applications Healthcare Operations and Scheduling Optimization

Abstract

ABSTRACT Revenue Management Systems (RMS) are commonly used in the hotel industry to maximize revenues in the short term. The forecasting‐allocation module is a key tactical component of a hotel RMS. Forecasting involves estimating demand for service packages across all stayover nights in a planning horizon. A service package is a unique combination of physical room, amenities, room price, and advance purchase restrictions. Allocation involves parsing the room inventory among these service packages to maximize revenues. Previous research and existing revenue management systems assume the demand for a service package to be independent of which service packages are available for sale. We develop a new forecasting‐allocation approach that explicitly accounts for this dependence. We compare the performance of the new approach against a baseline approach using a realistic hotel RMS simulation. The baseline approach reflects previous research and existing industry practice. The new approach produces an average revenue increase of at least 16% across scenarios that reflect existing industry conditions.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 26 citations exist upstream.

References

1992Yield Management at American Airlines 1992A Taxonomy and Research Overview of Perishable-Asset Revenue Management: Yield Management, Overbooking, and Pricing 1997A Multiproduct Dynamic Pricing Problem and Its Applications to Network Yield Management 2000Optimal Dynamic Pricing for Perishable Assets with Nonhomogeneous Demand 1998An Analysis of Bid-Price Controls for Network Revenue Management 1999Airline Yield Management with Overbooking, Cancellations, and No-Shows 2003Revenue Management in a Dynamic Network Environment 1995An Application of Yield Management to the Hotel Industry Considering Multiple Day Stays

Cited by

2014On revenue management and the use of occupancy forecasting error measures 2002A Purchasing Framework for B2B Pricing Decisions and Risk‐sharing in Supply Chains*2006Managing a hotel's perishable inventory using bid prices 2020Simultaneous monitoring of origin and scale of a shifted exponential process with unknown and estimated parameters 2016Classifying Revenue Management: A Taxonomy to Assess Business Practice*

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.