• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKI, Google Scholar, Electronic Journals Library, Crossref, Ulrich's Periodicals Directory, MESLibrary, etc.
    • E-mail: joebm.editor@gmail.com
JOEBM 2022 Vol.10(6): 357-365 ISSN: 2301-3567
DOI: 10.18178/joebm.2022.10.6.725

Generalized Revenue Management Model for Small Hotels

Jose-Mario Zarate-Carbajal, Riemann Ruiz-Cruz, and Juan-Diego Sanchez-Torres

Abstract—Revenue management models have evolved through time; the benefits and implementation complexity have increased. Large hotel chains have successfully implemented revenue management models; in contrast, small hotels lag in adoption. We propose a simplified revenue management model more suitable to be adopted by small hotels. We simulate customer attendance using parameters from a travel agency. We adapt two popular revenue management from airlines to a small hotel system, and we describe a method to find the optimal parameters for each model. We compare the revenue's performance in the system, and we prove a revenue increase by implementing our models. Finally, we propose a simplification based on the single capacity allocation model and suggest a set of business rules for implementation.

Index Terms—Revenue management, simulation modeling, numerical optimization, hotel management.

Jose-Mario Zarate-Carbajal, Riemann Ruiz-Cruz, and Juan-Diego Sanchez-Torres are with Instituto Tecnológico y de Estudios Superiores de Occidente (ITESO), Periférico Sur Manuel Gómez Morín 8585, Tlaquepaque, Jalisco, 45604, Mexico (e-mail: {jmzaratec, riemannruiz, dsanchez}@iteso.mx).

[PDF]

Cite:Jose-Mario Zarate-Carbajal, Riemann Ruiz-Cruz, and Juan-Diego Sanchez-Torres, "Generalized Revenue Management Model for Small Hotels," Journal of Economics, Business and Management vol. 10, no. 6, pp. 357-365, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Copyright © 2008-2024. Journal of Economics, Business and Management. All rights reserved.
E-mail: joebm.editor@gmail.com