Joint pricing of multiple types of rooms in hotel under customer choices
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    Abstract:

    This paper studies the joint optimal pricing problem when the demands for multiple types of rooms depend on the manager’s pricing strategies. First,we present an idea that all room types are classified by whether their demands have interactive impacts. Second,under the assumption of customers staying at the hotel only for a single night,we describe the dynamic pricing process of the hotel manager with a stochastic and dynamic model,and describe the customer’s choice behavior with a Nested Logit (NL) discrete choice model. We also design an algorithm to solve the optimal price strategy. Experimental results show that,compared to cases that do not consider the influence of pricing strategies among different types of rooms,the model that consider the interactive impacts of demands between different types of rooms can achieve more benefit,higher expectation of room occupancy rate and lower average room price.

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  • Online: April 14,2018
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