| Author | Kanjana Chandenduang |
| Call Number | AIT Thesis no.ISE-02-09 |
| Subject(s) | Hotel management--Thailand
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| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Advanced Technologies |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. ISE-02-09 |
| Abstract | In this study, a strategy for achieving the maximum revenue in a Thai hotel case study is to design capacity planning that allocates inventory (rooms) and the booking limits in a planning horizon. An optimization model is used to set up this strategy by a linear programming model including multiple night of stay, overbooking, cancellation and no-shows probabilities. Hotel historical data are employed in the model. The hotel manager can use its solution to decide whether an arrival request will be accepted or rejected. In addition, sensitivity analysis used to explain the effect of the parameters in the deterministic model. Since this problem in hotel industries involves uncertain variables and parameters. The nested network by using shadow price is a heuristic that is considered as a control booking strategy to generate the maximum revenue. The concept is to protect the rooms for higher class customers who can pay more than those of lower classes, based on results from the deterministic model. This heuristic is compared with the current hotel-operating environment to observe the performance. The present hotel policy "First Come First Served (FCFS)" is simulated. Another decision rule is to use booking limits from the optimal solution to be criteria. That is called nonnested policy. Simulation is used to evaluate all of them. This study shows that nested booking limit policy can provide more revenue than FCFS and non-nested policy. Hence, this hotel can be applied the nested policy when the demand is more than capacity. In addition, the normal operation of this hotel always applies a percentage of overbooking policy at 10%. It is not necessary to operate this percentage if there is another percentage that can give the more revenue. This percentage is depended on the cancellation rate and overbooking cost. The simulation experiment results display that if the cancellation rate decreases and overbooking cost stables, this policy will provide high margin when percentage of overbooking increases. In contrast to, if cancellation rate stables and overbooking cost increases, margins will be decreased when percentage of overbooking increases. If these parameters change, the hotel should find the new appropriated percentage of overbooking policy to operate. For a recommendation, this hotel can be developed from 10% to 20% overbooking in the normal operation that cancellation rate is around 20-40% and overbooking cost is approximately 1,000 baht in cunent reservation to get more margins. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. ISE-02-09 |
| Type | Thesis |
| School | School of Advanced Technologies (SAT) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Anulark Techanitisawad;Bechter, Clemens; |
| Examination Committee(s) | Voratas Kachitvichyanukul; |
| Scholarship Donor(s) | H. M. KING; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2002 |