Dynamic Pricing for Hotel Revenue Management Using Price Multipliers

Bayoumi, Abd El-Moniem; Saleh, Mohamed; Ativa, Amir F.; Aziz, Heba Abdel

Dynamic Pricing for Hotel Revenue Management Using Price Multipliers

dc.contributor.author	Bayoumi, Abd El-Moniem	en
dc.contributor.author	Saleh, Mohamed	en
dc.contributor.author	Ativa, Amir F.	en
dc.contributor.author	Aziz, Heba Abdel	en
dc.date.accessioned	2018-11-02T19:02:06Z	en
dc.date.available	2018-11-02T19:02:06Z	en
dc.date.issued	2013	en
dc.description.abstract	In this paper it is proposed 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 till arrival, etc). 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, trend, etc, 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.	en
dc.identifier.uri	http://hdl.handle.net/10919/85633	en
dc.language.iso	en	en
dc.publisher	Journal of Revenue Pricing Management	en
dc.rights	In Copyright	en
dc.rights.uri	http://rightsstatements.org/vocab/InC/1.0/	en
dc.subject	Revenue management system	en
dc.subject	dynamic pricing	en
dc.subject	price elasticity	en
dc.subject	Monte Carlo simulation	en
dc.subject	hotel room forecasting	en
dc.title	Dynamic Pricing for Hotel Revenue Management Using Price Multipliers	en
dc.type	Article	en