Detailed Information on Publication Record
2021
Model of Price Optimization as a Part of Hotel Revenue Management - Stochastic Approach
PETŘÍČEK, Martin, Štěpán CHALUPA and Dávid MELASBasic 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
Článek v odborném periodiku
Country of publisher
Switzerland
Confidentiality degree
není předmětem státního či obchodního tajemství
Organization unit
University College Prague – University of International Relations and Institute of Hospitality Management and Economics, Ltd.
Keywords in English
accommodation service; nonlinear programming; price optimization; revenue management; price elasticity
Tags
International impact, Reviewed
Změněno: 12/7/2021 10:30, doc. Ing. Martin Petříček, Ph.D.
V originále
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.
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.