Joint dynamic pricing and capacity control for hotels and rentals with advanced demand information

Weifen Zhuang; Jiguang Chen; Xiaowen Fu

doi:10.1016/j.orl.2017.06.005

Joint dynamic pricing and capacity control for hotels and rentals with advanced demand information

Weifen Zhuang, Jiguang Chen, Xiaowen Fu

Research output: Journal article publication › Journal article › Academic research › peer-review

16 Citations (Scopus)

Abstract

This paper studies joint dynamic pricing and capacity control for hotel and rental operations when advanced demand information (ADI) is available for some but not all customers. Dynamic pricing for non-ADI customers and capacity control for ADI customers are jointly considered with a stochastic dynamic programming model. We examine structural properties and fully characterize optimal policies. Based on monotone properties of optimal policies, we develop effective pricing and rationing heuristics, and investigate the value of demand information through numerical studies.

Original language	English
Pages (from-to)	397-402
Number of pages	6
Journal	Operations Research Letters
Volume	45
Issue number	5
DOIs	https://doi.org/10.1016/j.orl.2017.06.005
Publication status	Published - 1 Sept 2017
Externally published	Yes

Keywords

Advanced demand information
Capacity control
Dynamic pricing
Hotels and rentals

ASJC Scopus subject areas

Software
Management Science and Operations Research
Industrial and Manufacturing Engineering
Applied Mathematics

More information

10.1016/j.orl.2017.06.005

Cite this

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Joint dynamic pricing and capacity control for hotels and rentals with advanced demand information

Abstract

Keywords

ASJC Scopus subject areas

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