Spreadsheet Modeling to Determine the Optimum Hotel Room Rate for a Short High-Demand Period

• Main Authors: LEONG, Thin Yin, LEE, Wee Leong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Spreadsheet modeling; Demand management; Business; Computer Sciences; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://ink.library.smu.edu.sg/sis_research/653; http://dx.doi.org/10.1287/ited.1100.0053
• Institution: Singapore Management University

In this article, we describe a business modeling exercise that helps students understand the complex relationship between demand and price. The exercise seeks to determine the optimum pricing, in view of anticipated occupancy response that maximises profit for a hotel. Through the exercise, students...