Dynamic pricing for hotel rooms when customers request multiple-day stays

• Main Authors: NADARAJAH, Selvaprabu, LIM, Yun Fong, DING, Qing
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Hotel Revenue Management; Resource Pricing; Markov Decision Processes; Approximate Linear Programming; Hospitality Administration and Management; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5147; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6146/viewcontent/DynamicPricingHotelRooms_2015_wp.pdf
• Institution: Singapore Management University

Prominent hotel chains quote a booking price for a particular type of rooms on each day and dynamically update these prices over time. We present a novel Markov decision process (MDP) formulation that determines the optimal booking price for a single type of rooms under this strategy, while consider...