A MODEL TO DEVELOP HOTEL MANAGEMENT SYSTEM TO OPTIMIZE REVENUE

Abstract

Hotel provides facilities for customers and earns revenue. In this sector of business, many challenges might be faced by the hotel management since there arise price competition between hotels. Hotel management has to follow some strategies to earn maximum revenue. Though it is difficult to estimate actual profit in any epidemic situations, we showed the optimal revenue is possible even within this kind of epidemic situations. And to do this, a revenue management model was developed in terms of pricing and room allocation capacity. Price is the sole factor in this model. Two types of demand models are used, one is deterministic demand model and another is stochastic demand model and both are used for pricing model and capacity model formulation. This work showed how hotels can gain more revenue by using proposed capacity and pricing model, even in the time of global crisis situation like COVID-19 epidemic.