Dynamic Overbooking Limits for Guaranteed and Nonguaranteed Hotel Reservations
Tourism Today, Vol. 7, pp. 100-108, Fall 2007
10 Pages Posted: 5 Nov 2008 Last revised: 20 Jan 2010
Date Written: November 5, 2008
The research note addresses the problem of dynamic overbooking limits in the context of guaranteed and nonguaranteed bookings. The note shows how the optimal number of overbookings will change when the hotel receives a request for a specific date given the current guaranteed/nonguaranteed reservations ratio for the same date.
Keywords: hotel, management, overbooking, yield management, revenue management
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