The hotel yield management with two types of room prices, overbooking and cancellations [An article from: International Journal of Production Economics]

This digital document is a journal article from International Journal of Production Economics, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
We consider a problem for hotel room allocations with early discount, cancellations and overbooking. In our model, customers can book a room in discounted price if they reserve before a certain deadline. The model takes overbooking into account. We have expressed the expected total sale function, proved it is unimodal on the number of allocated rooms for early discount and for overbooking, respectively, under a condition and clarified the range where the optimal solution exists. We have derived an optimal allocation for early discount in a specified model without cancellations and overbooking.