Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach
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 t...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-07-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/9/13/1552 |
| _version_ | 1797527927201464320 |
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| author | Martin Petricek Stepan Chalupa David Melas |
| author_facet | Martin Petricek Stepan Chalupa David Melas |
| author_sort | Martin Petricek |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-10T09:50:48Z |
| format | Article |
| id | doaj.art-6edbb98f6c71483583c9a53e45ee7f75 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T09:50:48Z |
| publishDate | 2021-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-6edbb98f6c71483583c9a53e45ee7f752023-11-22T02:46:02ZengMDPI AGMathematics2227-73902021-07-01913155210.3390/math9131552Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic ApproachMartin Petricek0Stepan Chalupa1David Melas2Department of Economy and Economics, Institute of Hospitality Management in Prague, 181 00 Prague, Czech RepublicDepartment of Economy and Economics, Institute of Hospitality Management in Prague, 181 00 Prague, Czech RepublicDepartment of Economy and Economics, Institute of Hospitality Management in Prague, 181 00 Prague, Czech RepublicThe 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.https://www.mdpi.com/2227-7390/9/13/1552accommodation servicenonlinear programmingprice optimizationrevenue managementprice elasticity |
| spellingShingle | Martin Petricek Stepan Chalupa David Melas Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach Mathematics accommodation service nonlinear programming price optimization revenue management price elasticity |
| title | Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach |
| title_full | Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach |
| title_fullStr | Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach |
| title_full_unstemmed | Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach |
| title_short | Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach |
| title_sort | model of price optimization as a part of hotel revenue management stochastic approach |
| topic | accommodation service nonlinear programming price optimization revenue management price elasticity |
| url | https://www.mdpi.com/2227-7390/9/13/1552 |
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