A Comparative Revenue Analysis Of
Hotel Yield Management Heuristics
By
Timothy Kevin Baker
Bass Hotels and Resorts, Inc.
Three Ravinia Drive, Suite 2900
Atlanta, GA 30346-2149
E-mail: baker.tim@hiw.com
and
David A. Collier
The Ohio State University
1775 College Road
Columbus, OH 43210
E-mail: collier.4@osu.edu
A Comparative Revenue Analysis Of
Hotel Yield Management Heuristics
ABSTRACT
Yield management is the dynamic pricing, overbooking, and allocation of perishable assets across market segments in an effort to maximize short-term revenues for the firm. Numerous optimization heuristics for allocation and overbooking exist for the airline industry, whose perishable asset is the airline seat. When an airline departs, no revenue is gained from the empty seat(s). In the hotel industry, the perishable asset is the hotel room—once a room is left empty for a night, that night's revenue cannot be recaptured. The literature on yield management......
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Approximate Word Count: 9544
Approximate Pages: 37 (260 words per double-spaced page) |