Abstract
Few studies have examined overbooking in the restaurant industry. The authors observed the business situation in a restaurant in Hong Kong over 2 years, noted how demand exceeded supply on a regular basis, and analyzed the reservation data. The reservation data were used to estimate the no-show/cancellation probability and walk-ins for lunch and dinner on different days of the week, to illustrate the model, and to arrive at the optimal booking limits. A conceptual model was developed which would take into consideration the business situation, no-shows, cancellations, and walk-ins to determine the booking limit for maximizing the expected total revenue.
Original language | English |
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Pages (from-to) | 127-145 |
Number of pages | 19 |
Journal | Journal of Foodservice Business Research |
Volume | 20 |
Issue number | 2 |
DOIs | |
Publication status | Published - 15 Mar 2017 |
Keywords
- Cancellations
- no-shows
- overbooking
- restaurant revenue management
- walk-ins
ASJC Scopus subject areas
- Food Science