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Quadratic models for yield management in hotel rooms operation

✍ Scribed by Zheng Gu; Jeffery M. Caneen


Publisher
John Wiley and Sons
Year
1998
Weight
149 KB
Volume
4
Category
Article
ISSN
1077-3509

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✦ Synopsis


In the hospitality literature there are no consistent de®nitions and interpretations of yield management. This study reviews yield management in its various perceptions and analyses the drawbacks of the yield statistic currently used in the industry. The paper further develops two quadratic models for yield management: one for optimising room revenue and the other for optimising room pro®t. Based on the two models, new yield statistics of revenue maximisation and pro®t maximisation are proposed. The task of yield management is to achieve a yield statistic close to 1 so as to maximise room revenue and pro®ts.