PETŘÍČEK, Martin, Štěpán CHALUPA and Dávid MELAS. Model of Price Optimization as a Part of Hotel Revenue Management - Stochastic Approach. Mathematics. Switzerland: MDPI, 2021, vol. 9, No 1552, p. 1-16. ISSN 2227-7390. Available from: https://dx.doi.org/10.3390/math9131552.
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Basic information
Original name Model of Price Optimization as a Part of Hotel Revenue Management - Stochastic Approach
Name (in English) Model of Price Optimization as a Part of Hotel Revenue Management - Stochastic Approach
Authors PETŘÍČEK, Martin, Štěpán CHALUPA and Dávid MELAS.
Edition Mathematics, Switzerland, MDPI, 2021, 2227-7390.
Other information
Type of outcome Article in a journal
Country of publisher Switzerland
Confidentiality degree is not subject to a state or trade secret
Organization unit University College Prague – University of International Relations and Institute of Hospitality Management and Economics, Ltd.
Doi http://dx.doi.org/10.3390/math9131552
Keywords in English accommodation service; nonlinear programming; price optimization; revenue management; price elasticity
Tags International impact, Reviewed
Changed by Changed by: doc. Ing. Martin Petříček, Ph.D., učo 14750. Changed: 12/7/2021 10:30.
Abstract
The paper is focusing on the problem of price optimization in the area of accommodation services. The main aim is to propose a novel simulation-based methodology of price optimization based on the customer’s price acceptance. The authors create a model based on the known approaches but extended by the stochastic approach and optimization based on the coefficient of price elasticity. The whole model is created, the price is set and optimized in two steps. The first step makes segmentation and optimization (with the price elasticity approach). The second step then sets the price of the reservation—the final price for a customer. This reservation price is mainly determined by knowledge of the length of stay, occupancy and booking lead time. All those parameters are described in the text from the economic point of view and make the base for the whole and complex revenue management model.
Abstract (in English)
The paper is focusing on the problem of price optimization in the area of accommodation services. The main aim is to propose a novel simulation-based methodology of price optimization based on the customer’s price acceptance. The authors create a model based on the known approaches but extended by the stochastic approach and optimization based on the coefficient of price elasticity. The whole model is created, the price is set and optimized in two steps. The first step makes segmentation and optimization (with the price elasticity approach). The second step then sets the price of the reservation—the final price for a customer. This reservation price is mainly determined by knowledge of the length of stay, occupancy and booking lead time. All those parameters are described in the text from the economic point of view and make the base for the whole and complex revenue management model.
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