Yield Management under the Real Options Scheme for Optimal Decision Making in Hotels

Alvarez, Lucia and Ruiz López, Felipe and Solana Perez, Pablo (2008). Yield Management under the Real Options Scheme for Optimal Decision Making in Hotels. In: "II International Conference on Industrial Engineering and Industrial Management : XII Congreso de Ingeniería de Organización", 03/09/2008-05/09/2008, Burgos, Spain. ISBN 978-84-9639-4-86-5.

Description

Title: Yield Management under the Real Options Scheme for Optimal Decision Making in Hotels
Author/s:
  • Alvarez, Lucia
  • Ruiz López, Felipe
  • Solana Perez, Pablo
Item Type: Presentation at Congress or Conference (Article)
Event Title: II International Conference on Industrial Engineering and Industrial Management : XII Congreso de Ingeniería de Organización
Event Dates: 03/09/2008-05/09/2008
Event Location: Burgos, Spain
Title of Book: Proceedings of II International Conference on Industrial Engineering and Industrial Management : XII Congreso de Ingeniería de Organización
Date: 3 September 2008
ISBN: 978-84-9639-4-86-5
Subjects:
Freetext Keywords: real options, optimal decision making, yield management.
Faculty: E.T.S.I. Industriales (UPM)
Department: Ingeniería de Organización, Administración de Empresas y Estadística
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

Yield management is the process of actively managing inventory to maximize revenues. In this paper we present a model demised to apply yield management techniques using real options to the problem of optimal decision making when assigning rooms to hotel customers. Two different methods are proposed to carry out the evaluation: numerical resolution with the PDEs and Monte Carlo simulation. The achieved results using both methods are similar demonstrating the robustness of the simulation in this field and the model lends itself to be a tool for helping the hotel manager in his operational decision of whether or not giving a room to a potential client.

More information

Item ID: 4387
DC Identifier: http://oa.upm.es/4387/
OAI Identifier: oai:oa.upm.es:4387
Official URL: http://www.ubu.es/ubu/cm/eps/tkContent?pgseed=1285752116930&idContent=99681&locale=es_ES&textOnly=false
Deposited by: Memoria Investigacion
Deposited on: 29 Sep 2010 09:51
Last Modified: 24 Feb 2017 15:41
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