• Login
    View Item 
    •   SMARTech Home
    • College of Business (CoB)
    • Operations Management
    • View Item
    •   SMARTech Home
    • College of Business (CoB)
    • Operations Management
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    A Comparison of Unconstraining Methods to Improve Revenue Management Systems (ed.3)

    Thumbnail
    View/Open
    RM_unconstrain_021507_crc.pdf (231.8Kb)
    Date
    2007-02-16
    Author
    Ferguson, Mark E.
    Crystal, Carolyn Roberts
    Higbie, Jon
    Kapoor, Rohit
    Metadata
    Show full item record
    Abstract
    A successful revenue management system requires accurate demand forecasts for each customer segment. The forecasts are used to set booking limits for lower value customers to ensure an adequate supply for higher value customers. The very use of booking limits, however, constrains the historical demand data needed for an accurate forecast. Ignoring this interaction leads to substantial penalties in a firm's potential revenues. We review existing unconstraining methods and propose a new method that includes some attractive properties not found in the existing methods. We evaluate several of the common unconstraining methods against our proposed method by testing them on intentionally constrained simulated data. Results show our proposed method outperform other methods in two out of three data sets. We also test the revenue impact of our proposed method, EM, and "no unconstraining" actual booking data from a hotel/casino. We show that performance varies with the initial starting protection limits and a lack of unconstraining leads to significant revenue losses.
    URI
    http://hdl.handle.net/1853/13600
    Collections
    • Operations Management [40]

    Browse

    All of SMARTechCommunities & CollectionsDatesAuthorsTitlesSubjectsTypesThis CollectionDatesAuthorsTitlesSubjectsTypes

    My SMARTech

    Login

    Statistics

    View Usage StatisticsView Google Analytics Statistics
    facebook instagram twitter youtube
    • My Account
    • Contact us
    • Directory
    • Campus Map
    • Support/Give
    • Library Accessibility
      • About SMARTech
      • SMARTech Terms of Use
    Georgia Tech Library266 4th Street NW, Atlanta, GA 30332
    404.894.4500
    • Emergency Information
    • Legal and Privacy Information
    • Human Trafficking Notice
    • Accessibility
    • Accountability
    • Accreditation
    • Employment
    © 2020 Georgia Institute of Technology