Design and Implementation of Mathematical Model for Revenue Management in Hospitality Industry

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Journal of Hotel & Business Management


Revenue management is the art and science of maximizing revenue under various variable conditions. It is a management tool that has the objective of increasing sale revenues by manipulating the prices at which fixed products in the hotels are made available for sale in relation to the current and forecasted demand. This paper focus on the design and implementation of mathematical model, of the type of linear programming, which will help the revenue managers in the hospitality industry to manage their revenue to enable the hotel’s maximized their contributions. This model becomes necessary today in the hospitality industry, because of the complex decisions facing the hotel’s manager as regarding what product to produce, quantity of the product and services to produce such product and so on. How this model could be applied in the food and beverages department in the hospitality industry was demonstrated. The paper also illustrated the skill of who is to be a revenue manager in the hospitality sector. The paper concludes and recommends that if the model is adopted, it will improve the sector revenue generation among others and reduce wastage, if not totally eliminated in the foods and beverages departments.



Design and implementation, Revenue management, Hospitality industry