Research On Hotel Overbooking Strategies Considering OTA Channel And Customer Transfer

Tourism information technology has developed rapidly.On the one hand,hotels rely on OTAs(Online Travel Agencies)to open up an online marketing market.On the other hand,they need to handle the competition relationship with OTA and the conflict between the two marketing channels correctly.Because of the convenience of OTA channels,the hotels' occupancy rate cannot be guaranteed although the market demand is large.Overbooking strategy as one of the hotel revenue management strategy can improve hotel revenue to some extent.However,when the overbooking strategy is implemented,the number of customers arrived at the hotel on the check-in day may exceed the capacity of the hotels,then the hotel has to refuse certain customers and that brings loss of economic benefits and reputation to the hotel.Therefore,hotels often take measures to make up the lost such as to upgrade the room service.One of the overbooking remedies is to transfer customers who exceed capacity to another hotel,which is mentioned as a strategy by most of the previous studies.Based on the background above,this thesis combines revenue management and game theory to research the hotel's overbooking strategy under customer transfer and explore the best way to cooperate with other hotels.A model will be built to analysis the entire supply chain comprised of hotel and OTA.This thesis divides the research into the following two parts.The first part explores the feasibility of customer transfer.If a hotel can transfer overbooked customers to other hotels in the market,how the hotel channel distribution and overbooking level decisions will change.We prove that when another hotel has available rooms,as long as the transfer cost is lower than its own price,the optimal overbooking level and the hotel revenue will all increase.The second part focuses on how the two hotels with uncertain occupancy rates adopt the overbooking strategy under this transfer cooperation relationship,which maximizes the overall benefit of the hotel or supply chain.We propose that hotels can reduce overbooking levels when both hotels are overbooked.This article mainly solve problem with the low occupancy rate of OTA as it proposed that hotels with low OTA booking occupancy rate can cooperate,but the discount prices during the peak season maybe not the optimal cooperation mode.Variables like compensation the booking arrival rate of the channel are all important.In the thesis,the corresponding cases will be attached for analysis.