| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5128365 | Operations Research Letters | 2017 | 6 Pages |
Abstract
This paper studies joint dynamic pricing and capacity control for hotel and rental operations when advanced demand information (ADI) is available for some but not all customers. Dynamic pricing for non-ADI customers and capacity control for ADI customers are jointly considered with a stochastic dynamic programming model. We examine structural properties and fully characterize optimal policies. Based on monotone properties of optimal policies, we develop effective pricing and rationing heuristics, and investigate the value of demand information through numerical studies.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Weifen Zhuang, Jiguang Chen, Xiaowen Fu,