Decomposition methods for dynamic room allocation in hotel revenue management

N. Aydin and S.I. Birbil

European Journal of Operational Research, 2018, vol. 271, issue 1, 179-192

Abstract: Long-term stays are quite common in the hotel business. Consequently, it is crucial for the hotel managements to consider the allocation of available rooms to a stream of customers requesting to stay multiple days. This requirement leads to the solving of dynamic network revenue management problems that are computationally challenging. A remedy is to apply decomposition approaches so that an approximate solution can be obtained by solving many simpler problems. In this study, we investigate several room allocation policies in hotel revenue management. We work on various decomposition methods to find reservation policies for advance bookings and stay-over customers. We also devise solution algorithms to solve the resulting problems efficiently.

Keywords: Revenue management; Hotel; Capacity control; Decomposition methods (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:271:y:2018:i:1:p:179-192

DOI: 10.1016/j.ejor.2018.05.027

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