Dynamic pricing for hotel revenue management using price multipliers

被引：45

作者：

Bayoumi A.E.-M. ^{[1
]}

Saleh M. ^{[2
]}

Atiya A.F. ^{[1
]}

Aziz H.A. ^{[2
]}

机构：

[1] Department of Computer Engineering, Cairo University, Giza

[2] Faculty of Computers and Information, Cairo University, Giza

来源：

Journal of Revenue and Pricing Management | 2013年 / 12卷 / 3期

关键词：

dynamic pricing; hotel room forecasting; Monte Carlo simulation; price elasticity; revenue management system;

D O I：

10.1057/rpm.2012.44

中图分类号：

学科分类号：

摘要：

In this article we propose a new dynamic pricing approach for the hotel revenue management problem. The proposed approach is based on having 'price multipliers' that vary around '1' and provide a varying discount/premium over some seasonal reference price. The price multipliers are a function of certain influencing variables (for example, hotel occupancy, time until arrival). We apply an optimization algorithm for determining the parameters of these multipliers, the goal being to maximize the revenue, taking into account current demand, and the demand-price sensitivity of the hotel's guest. The optimization algorithm makes use of a Monte Carlo simulator that simulates all the hotel's processes, such as reservations arrivals, cancellations, duration of stay, no shows, group reservations, seasonality and trend, as faithfully as possible. We have tested the proposed approach by successfully applying it to the revenue management problem of Plaza Hotel, Alexandria, Egypt, as a case study. © 2013 Macmillan Publishers Ltd.

引用

页码：271 / 285

页数：14

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