Choice-Based Revenue Management with Applications to Hotels

Intense competition, fast changing technology, increased and diverse
customer demand, and fast and reliable services and goods delivery
expectations have reduced the profit margins for products. To be able to
obtain a sustainable economic success, companies search for ways to offer
the existing products via innovative ways. Revenue management is a tool
that helps firms in this purpose. On the other hand, to match and even
exceed customer anticipations, firms need to understand customer
preferences and offer products accordingly. Customers can now reach
wide range of competitor products due to online services. Hence it became
much more important to apprehend and integrate customer choices into
decision support tools. At this point, choice models are used to
mathematically understand the customer choice preferences among a set
of presented alternatives. This book combines revenue management and
choice models to present a methodology to understand customer choices
and integrate these to revenue management methods to be able to offer
the best set of products to the customers. Also real life applications for
hotels have been presented for different methods that are discussed and
also proposed in this book with respective algorithms. When combined
with decision support tools, concepts presented in this book offers a
significant revenue increase for companies.