Title: Booking models for hotel revenue management considering multiple-day stays

Authors: S. Liu, K.K. Lai, S.Y. Wang

Addresses: School of Management, Central University For Nationalities, Beijing 100081, China. ' Department of Management Sciences, City University of Hong Kong, Kowloon, Hong Kong; College of Business Administration, Hunan University, Hunan 410082, China. ' Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences, Beijing 100080, China

Abstract: This study presents several revenue optimisation models for hotel room reservations for a future target day with multiple-day stays. Assume that the hotel has only one type of room but the unit rate for the room may be different during every booking period and every reservation may cover several days. A stochastic programming model with semi-absolute deviations for measuring the risk for hotel revenue under an uncertain environment is proposed. And this stochastic model can be changed into a linear programming model by applying linearisation techniques. Numerical examples are presented to illustrate the efficiency of these models.

Keywords: hotel revenue management; semi-absolute deviation; stochastic programming; revenue optimisation; modelling; hotel room reservations; multiple day stays; hotels.

DOI: 10.1504/IJRM.2008.018179

International Journal of Revenue Management, 2008 Vol.2 No.1, pp.78 - 91

Published online: 06 May 2008 *

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