A hybrid optimization model for hotel yield management

Nowadays yield management is a strategic and tactical tool for hotels to improving its revenues and profitability under the global competitive environment. Compared to the airline industry, hotel yield management has some unique characteristics. A central reservation system is urgently needed to be built up for a hotel to use yield management in China. In this paper, we use the Holt-Winters process to forecast room demands in the future periods. Then we build a hybrid optimization model for hotel yield management, and a branch-and-bound method mixed with greedy algorithm is developed to solve the problem.