Study On The Online Capacity Strategy Of Hotel Room Allocation

With the rapid promoting of people's living standards and increasing competition in the market, the market demand of hotel industry continues to grow, both opportunities and challenges of the competitive environment become increasingly prominent, the excess of hotel room capacity and the pressure of investment recovery is also increasing. Based on the perishable value of hotel rooms and the uncertainty of customers demand, how to properly allocate rooms to the different need customers to maximize the revenue, has always been a big problem in the hotel industry. To enhance the hotel room revenue management, we must combine the practical application with the room allocation strategy for further improvement. Previous researchers established simplified model and heuristic strategy mostly based on two basic assumptions of future demand can accurately forecast and decision makers are risk neutral, but the two basic assumptions can not in conformity with the actual.Online algorithms and competitive analysis can effectively avoid the two basic assumptions, the existing researches have been using the online algorithm and competitive analysis to solve the problem in many revenue management industries, such as air transportation, rental housing, online auction, financial leasing, elevator decision-making, car rental, etc., and obtained satisfactory results.However, as far as we know, there is no relevant literature with a online and competitive analysis algorithm to handle the problem of hotel room allocation. This article explore the online and competitive analysis algorithm apply to hotel rooms allocation problems, hoping to provide a new research idea of hotel room allocation.First of all, introduce the main content and research method in this paper, through a large collection and summary of relevant information, organize the research status of hotel room allocation and the application status about online algorithm and competitive analysis in air transport, online auction, container handling and packing, fast food and retail, etc.Then, through the comparation of the air transport and hotel capacity allocation, find that online algorithms and competitive analysis can not only applies to the air transport but also applies to hotel room allocation.Next, specific to the hotel room allocation about first single day of two price level designs the static online strategy SRPS and dynamic allocation strategy DRPS respectively. Analysis of the two busy strategy combined with two types of competition in the worst possible scenario by an example, sequence that we can be combine with the actual demand, improve the ability of hotel room online allocation strategy.The biggest difference between hotel room allocation and air transport lies in the hotel room allocation need to consider the customers check-in for days. In order to reduce the complexity, this article consider check-in for days at a single price level firstly, design the hotel room allocation strategy SLPM, prove and analyze the competition, gives a trend chart about different scenario. And through numerical analysis, we can prove that SLPM apply to the hotel which the maximum continuous reservation number accepted is relatively small. Once again, to consider more days at multiple price level distribution of hotel rooms, a deterministic online strategy model MLPM is designed. Finally, summarize the results and the lack of the research and the direction for further study in the future.Online algorithm and competitive analysis method can avoid the disadvantages of two basic assumptions, get a new revenue management strategy and the new evaluation criterion, open up a new way about the revenue management of hotel room studies.Take the application of online algorithm and competitive analysis into the hotel room allocation, can avoid the two basic assumptions, extend hotel room revenue management, further improve the hotel room letting rate and earning rate.