a linear programming model has been presented for finding an appropriate planning in order to maximize hotel revenue. in this model, a special planning horizon has been considered that includes several busy days of a year. there are several reservation periods that may start a few months earlier. each period of reservation may have different prices and so result different incomes. hotel custome...

This paper addresses two concerns with the state of the art in network revenue management with dependent demands. The first concern is that the basic attraction model (BAM), of which the multinomial model (MNL) is a special case, may overestimate recapture in certain cases. The second concern is that the choice based deterministic linear program (CBLP), currently in use to derive heuristics for...

The Cornell University School of Hotel Administration was one of the first in the world to offer a university course in revenue management (starting in 1994) and currently offers five courses related to revenue management: Yield Management, Restaurant Revenue Management, Managing Hospitality Distribution Strategies, Hospitality Pricing and Analysis, and Nontraditional Revenue Management. In add...

Harrah’s Cherokee Casino and Hotel is an extreme and unusual example of revenue management techniques. Typical revenue management installations yield revenue enhancements of 3-7%. Harrah’s, chainwide, has seen 15% improvements, with Harrah’s Cherokee Casino and Hotel perhaps the most excessive beneficiary, despite serving no alcohol and having no traditional table games. Further, many tradition...

This paper addresses two concerns with the state of the art in network revenue management with dependent demands. The first concern is that the basic attraction model (BAM), of which the multinomial model (MNL) is a special case, may overestimate recapture in certain cases. The second concern is that the choice based deterministic linear program (CBLP), currently in use to derive heuristics for...

In this paper, we develop two methods for making pricing decisions in network revenue management problems. We consider a setting where the probability of observing a request for an itinerary depends on the prices and the objective is to dynamically adjust the prices so as to maximize the total expected revenue. The idea behind both of our methods is to decompose the dynamic programming formulat...

Major airlines are selling increasing numbers of interline itineraries, in which flights operated by two or more airlines are combined and sold together. One reason for this increase is the rapid growth of airline alliances, which promote the purchase of interline itineraries and therefore virtually extend the reach of each alliance member’s network. This practice, however, creates a difficult ...

This paper addresses two concerns with the state of the art in network revenue management with dependent demands. The first concern is that the basic attraction model (BAM), of which the multinomial model (MNL) is a special case, tends to be too optimistic in estimating demand spill. The second concern is that the choice based deterministic linear program (CBLP) currently in use to derive heuri...

The correlated models are introduced in this article regarding revenue efficiency and profit efficiency in dynamic network production systems. The proposed models are not only applicable in measuring efficiency of divisional, periodical and overall efficiencies, but recognizing the exact sources of inefficiency with respect to revenue and profit efficiencies. Two numerical examples, consisting ...