Models and Techniques for Hotel Revenue Management Using a Roling Horizon

23 Pages Posted: 20 Feb 2003

See all articles by Paul Goldman

Paul Goldman

ORTEC Consultants

Richard Freling

Erasmus Universiteit Rotterdam, ECOPT & ERIM (Deceased)

Kevin Pak

Erasmus Research Institute of Management (ERIM); Erasmus University Rotterdam (EUR) - Department of Econometrics

Nanda Piersma

University of Amsterdam - Academy for Economic Studies

Date Written: 17 2001 1,

Abstract

Abstract This paper studies decision rules for accepting reservations for stays in a hotel based on deterministic and stochastic mathematical programming techniques. Booking control strategies are constructed that include ideas for nesting, booking limits and bid prices. We allow for multiple day stays. Instead of optimizing a decision period consisting of a fixed set of target booking days, we simultaneously optimize the complete range of target booking dates that are open for booking at the moment of optimization. This yields a rolling horizon of overlapping decision periods, which will conveniently capture the effects of overlapping stays.

Keywords: Revenue Management, yield management, mathematical programming

JEL Classification: M, M11, R4, C61

Suggested Citation

Goldman, Paul and Freling, Richard and Pak, Kevin and Piersma, Nanda, Models and Techniques for Hotel Revenue Management Using a Roling Horizon (17 2001 1,). ERIM Report Series Reference No. ERS-2001-80-LIS, Available at SSRN: https://ssrn.com/abstract=370939

Paul Goldman

ORTEC Consultants ( email )

P.O. Box 490
NL-2800 AL Gouda
Netherlands

Richard Freling

Erasmus Universiteit Rotterdam, ECOPT & ERIM (Deceased)

Kevin Pak (Contact Author)

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus University Rotterdam (EUR) - Department of Econometrics

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Nanda Piersma

University of Amsterdam - Academy for Economic Studies ( email )

PO BOX 295
1000 AG Amsterdam
Netherlands
+31 20 5236434 (Phone)
+31 20 5236459 (Fax)

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