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DYNAMIC OPERATING RULES FOR MOTEL RESERVATIONS
Author(s) -
Ladany Shaul P.
Publication year - 1976
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1976.tb00722.x
Subject(s) - renting , computer science , profit (economics) , operations research , business , microeconomics , economics , mathematics , political science , law
When customers call a motel or a hotel to reserve a particular room (large, small, suites, single‐bed, double‐bed, etc.) decisions have to be made concerning the allocation of the available rooms. This paper presents a model for determining the maximum number of specific bookings that should be made for each type of room. The objective is to maximize the expected contribution to profit per rental day. The model considers the distribution of requests for reservations over time as well as cancellations. Also included are the effects of late (unbooked) arrivals and overbookings.