Demand planning in hotel management Decision Support Systems

Resumen

Yield Management based Decision Support Systems offer significant potential for small and medium hotels and hotel chains in terms of better capacity utilization, profitability and ability to compete with larger, international chains. However, the very specific and exacting demand planning requirements of these systems hinder their application by SME. This paper analyzes the differential pricing theoretical foundations of Yield Management to derive the challenging demand planning requirements it imposes. The major stumbling blocks found in meeting these requirements are then studied. The paper then proposes a design approach for the demand planning modules of such a DSS, developed in the framework of both a larger YM based DSS research project and a cooperative project with a small hotel chain, aimed at surmounting these obstacles. This design might provide a viable step towards the actual implementation of these DSS by the Spanish hotel SME. Keywords: Demand Planning. Yield management. Decision Support Systems.