Robust Optimization of Stochastic Revenue Management in Hotel Industry

The successful application of "revenue management" in airline industry motivated hotel industry management as well as some researchers to apply the concept and techniques of revenue management to enhance the income of hotels. In this paper, we develop a multi objective model for hotel management in stochastic environments. Since demand for rooms, and in some cases the supply, is random we introduce a robust model, in order to manage its uncertain parameters. Therefore, the objectives of the model are robustness as well as income enhancement. Furthermore, some other new assumptions such as overbooking, early (or late) departure of a passenger and different prices are also included in the model.