A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels.
This paper presents a multi-period optimization model for high margin and zero salvage products in online distribution channels with classifying customers based on number of products required. Taking hotel customers as an example, one is regular customers who reserve rooms for one day, and the other...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2015-01-01
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| Series: | PLoS ONE |
| Online Access: | http://europepmc.org/articles/PMC4493130?pdf=render |
| _version_ | 1819062224950394880 |
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| author | Ming Xu Yan Jiao Xiaoming Li Qingfeng Cao Xiaoyang Wang |
| author_facet | Ming Xu Yan Jiao Xiaoming Li Qingfeng Cao Xiaoyang Wang |
| author_sort | Ming Xu |
| collection | DOAJ |
| description | This paper presents a multi-period optimization model for high margin and zero salvage products in online distribution channels with classifying customers based on number of products required. Taking hotel customers as an example, one is regular customers who reserve rooms for one day, and the other is long term stay (LTS) customers who reserve rooms for a number of days. LTS may guarantee a specific amount of demand and generate opportunity income for a certain number of periods, meanwhile with risk of punishment incurred by overselling. By developing an operational optimization model and exploring the effects of parameters on optimal decisions, we suggest that service providers should make decisions based on the types of customers, number of products required, and duration of multi-period to reduce the loss of reputation and obtain more profit; at the same time, multi-period buying customers should buy products early. Finally, the paper conducts a numerical experiment, and the results are consistent with prevailing situations. |
| first_indexed | 2024-12-21T14:55:23Z |
| format | Article |
| id | doaj.art-df294ac7dad240e5bb7a105cc5bb725d |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-12-21T14:55:23Z |
| publishDate | 2015-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-df294ac7dad240e5bb7a105cc5bb725d2022-12-21T18:59:46ZengPublic Library of Science (PLoS)PLoS ONE1932-62032015-01-01107e012857410.1371/journal.pone.0128574A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels.Ming XuYan JiaoXiaoming LiQingfeng CaoXiaoyang WangThis paper presents a multi-period optimization model for high margin and zero salvage products in online distribution channels with classifying customers based on number of products required. Taking hotel customers as an example, one is regular customers who reserve rooms for one day, and the other is long term stay (LTS) customers who reserve rooms for a number of days. LTS may guarantee a specific amount of demand and generate opportunity income for a certain number of periods, meanwhile with risk of punishment incurred by overselling. By developing an operational optimization model and exploring the effects of parameters on optimal decisions, we suggest that service providers should make decisions based on the types of customers, number of products required, and duration of multi-period to reduce the loss of reputation and obtain more profit; at the same time, multi-period buying customers should buy products early. Finally, the paper conducts a numerical experiment, and the results are consistent with prevailing situations.http://europepmc.org/articles/PMC4493130?pdf=render |
| spellingShingle | Ming Xu Yan Jiao Xiaoming Li Qingfeng Cao Xiaoyang Wang A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels. PLoS ONE |
| title | A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels. |
| title_full | A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels. |
| title_fullStr | A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels. |
| title_full_unstemmed | A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels. |
| title_short | A Multi-Period Optimization Model for Service Providers Using Online Reservation Systems: An Application to Hotels. |
| title_sort | multi period optimization model for service providers using online reservation systems an application to hotels |
| url | http://europepmc.org/articles/PMC4493130?pdf=render |
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