Yield management under the real options scheme for optimal decision making in hotels

Resumen

Yield management is the process of actively managing inventory to maximize revenues. In this paper we present a model devised to apply yield management techniques using real options to the problem of optimal decision making when assigning rooms to hotel customers. Two different methods are proposed to carry out the evaluation: numerical resolution with the PDEs and MonteCarlo simulation. The achieved results using both methods are similar demonstrating the robustness of the simulation in this field and the model lends itself to be a tool for helping the hotel manager in his operational decision of whether or not giving a room to a potential client. Keywords: real options, optimal decision making, yield management.