Revenue Management Pricing in Douro Hotels
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Data
2016-09-26
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Portuguese Study Group
Resumo
The Douro Palace Hotel management wants to develop a software that helps
them with the dynamic pricing of the hotel rooms. Revenue Management
software is widely used for data analysis of demand and prices. However
the hotel barely follows the software recommendations for pricing decisions,
mainly due to the lack of understanding of the rationale and the inherent
diffi culty in validating pricing decisions. The hotel would like to have a
reliable model in order to give to the manager an overview of the business
and how to act to improve the sales.In this report, we present two distinct methodologies to address the hotel
request. The fi rst approach is excel based and more practically oriented
towards to be an immediate help of the current pricing decisions. A second
approach is more formal, mathematically speaking, but requires a more
time consuming implementation. It is based on a recent operations management/
operations research paper.
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Palavras-chave
Revenue Management , Dynamic Pricing Algorithm , Pricing decisions , Reference price , hotel room forecasting