1 optimization problems
A 10–80 room hotel, guesthouse, or resort needs to set a price for every night for the next 90–180 days. Demand varies day to day: weekends are high, weekdays are low, local events or holidays are very high, off-season is low. The decision: for each room category and each night, what price maximizes occupancy multiplied by average daily rate (RevPAR)? A fixed seasonal price method costs a 20-room property thousands in lost revenue per year — either nights go empty (price was too high) or rooms sold cheaply too early and the late, higher-paying customer was lost.