The output of this model is the optimal prices for each night
to determine the pricing policy of the hotel. It can be noted
that this resulting price can be continuous, similarly to the output
of most online booking systems; therefore no further
approximation will be needed. Nevertheless, the system can
only present the average room price to the customer to avoid
his dissatisfaction from changing the price daily.
In order to incorporate this dynamic pricing model into
revenue management systems, several interviews have been
conducted with domain experts to understand the most important
features of hotel management. Managers mainly wanted
to develop a multi-category mechanism like the one implemented
in airlines. In this multi-category system, in each night,
there will be different prices; where each price is associated
with a certain category. To implement this, we conducted a
parametric analysis on the proposed model to determine different
rates for each category. The goal of this parametric analysis
is to create a way to induce a dynamic change in the price as