Revenue management (RM) is the art and science of predicting consumer behavior and optimizing price and product availability to maximize revenue. RM models, despite their success and popularity, still remain somewhat simplistic. The most critical flaw is that current RM models are designed under the assumption that demands are independent random variables. The models are readily extended to com...

We develop two classes of optimization models to maximize revenue in a restaurant (while controlling average waiting time as well as perceived fairness) that may violate the first-come-first-serve (FCFS) rule. In the first class of models, we use integer programming, stochastic programming, and approximate dynamic programming methods to decide dynamically when, if at all, to seat an incoming pa...

A well-studied problem in the literature on airline revenue (or yield) management is the optimal allocation of seat inventory among fare classes given a demand distribution for each class. In the literature thus far, passenger demand is an exogenous parameter. However, the seat allocation decisions of one airline affect the passenger demands for seats on other airlines. In this paper we examine...

Profitability analysis is a tool which enables the users to evaluate company’s performance. Customer profitability analysis idea is to figure out the customer service activities and cost drivers to determine the profitability of each customer or group of customers. The use of customer profitability analysis appears as a powerful tool to allow management to consider the cost and profit from a cu...

This study investigates what three large, multinational hospitality companies do in practice when evaluating and making IT investment decisions. This study was launched in an attempt to 1) learn more about how multinational hospitality companies evaluate, prioritize, and select IT investments in the context of hotel GDS; 2) call attention to an important and costly topic in hopes of improving c...

One of Padang City's sources local revenue is hotel taxes. This study aims to analyze the potential tax and factors that influence revenue, as well formulate strategies increasing in city Padang. The primary data collection used a purposive sampling technique, while Slovin method was determine 60 samples reveal average rates. analytical analysis calculations, multiple linear regression, SWOT QS...

The approach presented in this article addresses the shortcomings of transaction-based revenue management and proposes a conceptual model of customer value-based revenue management to allow for both an efficient utilization of limited capacity resources and the establishment of profitable customer relationships. Furthermore, process models are developed for the operational tasks as well as resu...

π The contents of this paper in part or in whole are entirely those of the authors and do not represent the views and opinions of Sasin of Chulalongkorn University, Ministry of Finance and any organization associated with the authors. Comments are welcome. All correspondence is directed to Project Summary Findings 1. Tourism contributes 6% of Thailand's GDP at 323.5 billion Baht – increasing at...

We formulate and analyze a Markov decision process (dynamic programming) model for airline seat allocation (yield management) on a single-leg flight with multiple fare classes. Unlike previous models, we allow cancellation, no-shows, and overbooking. Additionally, we make no assumptions on the arrival patterns for the various fare classes. Our model is also applicable to other problems of reven...