Journal of Hospitality Application and Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Linear Programming for Revenue Management in Hotel Industry


Affiliations
1 Welcomgroup Graduate School of Hotel Administration Manipal University Manipal.
     

   Subscribe/Renew Journal


Linear Programming (LP) is the mathematical technique for optimum allocation of 'scarce' of 'limited' resources, such as labour, material, machine, capital, energy and so on, to several competing activities, such as products, services, jobs, new equipment, projects, and so on, on the basis of a given criterion of optimality. This paper is an insight into how LP can be made use of in the hotel industry too, where the use has been limited in India. A simple optimisation case has been tried to solve graphically and arrive at an optimal solution in an F&B Production department of a hotel.

Keywords

Revenue Management, Linear Programming
Subscription Login to verify subscription
User
Notifications
Font Size


  • Barth, J.E. (2002). Yield management: opportunities for private club managers. International Journal of Contemporary Hospitality Management, 14, 136–141.

  • Chiang, W.C. , Chen, J. C.H & Xu, X. (2007), An overview of research on revenue management: current issues and future research. International Journal of Revenue Management, 1(1), 2007, 97-127.

  • Cross, R. G. (1997). Revenue Management: Hard- Core Tactics for Market Domination, Broadway Books, Bantam Doubleday, Dell.

  • El Haddad, R., Roper, A. & Jones, P. (2008). The impact of Revenue Management Decisions on Customers Attitudes and behaviours: A case study of a leading UK Budget Hotel Chain. EuroCHRIE 2008 Congress, Emirates Hotel School, Dubai, UAE, October 11-14.

  • Esse, T. (2003). Securing the Value of Customer Value Management. Journal of Revenue and Pricing Management.

  • Hwang, J.& Wen, L.(2009). The Effect of Perceived Fairness toward Hotel Overbooking and Compensation Practices on Customer Loyalty. International Journal of Contemporary Hospitality Management, 21(6), 659-675.

  • Mourier J F, (2010). All Science, No Guesswork: The Benefits of Algorithms in Hotel Revenue Management. ehotelier.com, Dec 1, 2010.

  • Kimes, S.E. et al. (1998). Restaurant revenue management: applying yield management to the restaurant industry. Cornell Hotel and Restaurant Administration Quarterly. (39), 32–39.

  • Kimes, E. Sh & Wirtz, J (2003). Has Revenue Management Become Acceptable? Findings from an International Study on the Perceived Fairness of Rate Fences. Journal of Service Research, 6(2), 125-135.

  • Shah N H et.al. (2010)-Operations Research.

  • O’Connor, P. & Murphy, J. (2008). Hotel Yield Management Practices across multiple electronic distribution channels. Information Technology & Tourism, 10(2), 161-172.

  • Kimes, E. Sh, (2010) .The Future of Hotel Revenue Management. Cornell Hospitality Report, 10(14).

  • Todorov, Andrey and Zhechev, Vladimir, (2010). The impact of overbooking on hotels’ operation management. http://ssrn.com/abstract=1698103.

  • Talluri, K.et al. (2009). Revenue management: Models and Methods. Proceedings of the 2009 Winter Simulation Conference M. D. Rossetti, R. R. Hill, B. Johansson, A. Dunkin, and R. G. Ingalls, eds.


Abstract Views: 876

PDF Views: 0




  • Linear Programming for Revenue Management in Hotel Industry

Abstract Views: 876  |  PDF Views: 0

Authors

Shreelatha Rao
Welcomgroup Graduate School of Hotel Administration Manipal University Manipal.

Abstract


Linear Programming (LP) is the mathematical technique for optimum allocation of 'scarce' of 'limited' resources, such as labour, material, machine, capital, energy and so on, to several competing activities, such as products, services, jobs, new equipment, projects, and so on, on the basis of a given criterion of optimality. This paper is an insight into how LP can be made use of in the hotel industry too, where the use has been limited in India. A simple optimisation case has been tried to solve graphically and arrive at an optimal solution in an F&B Production department of a hotel.

Keywords


Revenue Management, Linear Programming

References