Decomposition methods for dynamic room allocation in hotel revenue management [Summary]

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Date
2018-11-16
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Volume Title
Publisher
Virginia Tech
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, several room allocation policies were investigated in hotel revenue management.

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Keywords
Revenue management, Hotel, Capacity Control, Decomposition methods
Citation