Flexible Payment Schemes in Hotel Business

This paper introduces a flexible payment scheme in the hotel business. When a customer makes a reservation for a hotel room, the hotel offers a payment discount at check-out time if the customer agrees to immediately make a nonrefundable down payment. This scheme protects the hotel from customer can...

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Main Authors:	DING, Qing, Dong, Ciwei
Format:	text
Language:	English
Published:	Institutional Knowledge at Singapore Management University 2011
Subjects:	Hospitality Administration and Management
Online Access:	https://ink.library.smu.edu.sg/lkcsb_research/3081
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Institution:	Singapore Management University
Language:	English

id	sg-smu-ink.lkcsb_research-4080
record_format	dspace
spelling	sg-smu-ink.lkcsb_research-40802011-05-04T07:19:29Z Flexible Payment Schemes in Hotel Business DING, Qing Dong, Ciwei This paper introduces a flexible payment scheme in the hotel business. When a customer makes a reservation for a hotel room, the hotel offers a payment discount at check-out time if the customer agrees to immediately make a nonrefundable down payment. This scheme protects the hotel from customer cancelations or no-shows resulting from competition among nearby hotels while providing an opportunity for the customer to enjoy the overall payment discount. We find the optimal solution for the amount of down payment and discount, and illustrate the value of the flexible payment for both hotel and customer. 2011-01-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/3081 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Hospitality Administration and Management
institution	Singapore Management University
building	SMU Libraries
continent	Asia
country	Singapore Singapore
content_provider	SMU Libraries
collection	InK@SMU
language	English
topic	Hospitality Administration and Management
spellingShingle	Hospitality Administration and Management DING, Qing Dong, Ciwei Flexible Payment Schemes in Hotel Business
description	This paper introduces a flexible payment scheme in the hotel business. When a customer makes a reservation for a hotel room, the hotel offers a payment discount at check-out time if the customer agrees to immediately make a nonrefundable down payment. This scheme protects the hotel from customer cancelations or no-shows resulting from competition among nearby hotels while providing an opportunity for the customer to enjoy the overall payment discount. We find the optimal solution for the amount of down payment and discount, and illustrate the value of the flexible payment for both hotel and customer.
format	text
author	DING, Qing Dong, Ciwei
author_facet	DING, Qing Dong, Ciwei
author_sort	DING, Qing
title	Flexible Payment Schemes in Hotel Business
title_short	Flexible Payment Schemes in Hotel Business
title_full	Flexible Payment Schemes in Hotel Business
title_fullStr	Flexible Payment Schemes in Hotel Business
title_full_unstemmed	Flexible Payment Schemes in Hotel Business
title_sort	flexible payment schemes in hotel business
publisher	Institutional Knowledge at Singapore Management University
publishDate	2011
url	https://ink.library.smu.edu.sg/lkcsb_research/3081
_version_	1770570989778763776

Flexible Payment Schemes in Hotel Business

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