An analysis of customer room choice model and revenue management practices in the hotel industry

Considering the limitations of existing studies on the customer choice behaviour, this paper tries to use the variable precision rough set (VPRS) approach to establish a customer room choice model (CRCM) based on the logit model, which satisfies the required precision. This model could analyze the data set of customer room choice and directly identify real attributes, which affect customer room choice and the weights of these attributes without prior information; and then the probability of the customer room choice can be conducted by the CRCM. In terms of the results, hotels can predict customer demand of each rate class and improve their precision, in order to increase hotel revenue.

► We establish a customer room choice model based on rough set and logit model.
► The model can calculate the probability of customer room choice.
► The model could aid the decision making process to increase hotel revenue.