We find that hotel mergers increase occupancy. In some specifications, price also rises. These effects occur only in markets with high capacity utilization and high uncertainty. These findings lead us to reject simple models of price or quantity competition in favor of models of “revenue management,” where firms price to fill available capacity in the face of uncertain demand. JEL classificatio...

Forecasting hotel arrivals and occupancy is an important component in hotel revenue management systems. In this paper we propose a new Monte Carlo simulation approach for the arrivals and occupancy forecasting problem. In this approach we simulate the hotel reservations process forward in time, and these future Monte Carlo paths will yield forecast densities. A key step for the faithful emulati...

Hotel industry of Pakistan has contributed significantly to Pakistan’s national revenue. The current study focuses on measuring two dimensions of customer-based-brand-equity i.e. brand loyalty and brand image, and, factors of perceived value of the visitors in Pakistan’s hotel industry. Brands are valuable assets that add economic and strategic value for its proprietors which can be achieved th...

Abstract In this paper we present a novel approach to the dynamic pricing problem for hotel businesses. It includes disaggregation of demand into several categories, forecasting, elastic simulation, and mathematical programming model with concave quadratic objective function linear constraints price optimization. The is computationally efficient easy implement. computer experiments data set, re...

Human decision-making has often being criticized as boundedly rational, and subject to biases (e.g. Tversky and Kahneman 1974). Important information cues are often misweighted (Dawes 1979, Camerer & Johnson 1991) and feedback delays hamper learning (Sterman 1989). Providing useful decision support tools is also not a sure-win solution, as users often erroneously discount the value of the quant...

EMPIRICAL STUDIES OF REVENUE MANAGEMENT PRACTICES: UNDERSTAND YOUR COMPETITION AND CUSTOMERS Jun Li Gerard Cachon This dissertation empirically examines factors that challenge revenue management practices in travel industry — air-travel and lodging. In particular, it focuses on strategic interactions among firms and strategic interactions between firms and customers. While most traditional reve...