Dynamic pricing with two revenue streams

We study casino revenue management through the pricing of hotel rooms in the presence of gaming revenue, which is random. We identify a stochastic order based on customers’ gaming profiles, from which a monotonic inventory price of rooms is obtained. We develop a threshold-type pricing policy for a...

Ausführliche Beschreibung

Gespeichert in:

Bibliographische Detailangaben
Veröffentlicht in:	Operations research letters 2012, Vol.40 (1), p.46-51
Hauptverfasser:	Zhuang, Weifen, Li, Michael Z.F.
Format:	Artikel
Sprache:	eng
Schlagworte:	Ancillary revenue Applied sciences Casinos Customers Dynamic pricing Exact sciences and technology Failure rates Firm modelling Mathematics Operational research and scientific management Operational research. Management science Operations research Pricing Primary revenue Probability and statistics Reliability theory. Replacement problems Revenues Sciences and techniques of general use Segmentation Statistics Stockpiling
Online-Zugang:	Volltext
Tags:	Tag hinzufügen Keine Tags, Fügen Sie den ersten Tag hinzu!

Beschreibung
Zusammenfassung:	We study casino revenue management through the pricing of hotel rooms in the presence of gaming revenue, which is random. We identify a stochastic order based on customers’ gaming profiles, from which a monotonic inventory price of rooms is obtained. We develop a threshold-type pricing policy for a special customer segmentation scheme that allows customers’ winning profiles to be ranked in terms of the failure rate order. Our results shed new light on customer valuation and market segmentation.
ISSN:	0167-6377 1872-7468
DOI:	10.1016/j.orl.2011.10.007