Pricing for long-term stay

What is it about?

Along with the economic development and tourism prosperity, long-term stay in hotel is very common in realistic practice in recent years. This paper does some research on how hotel pricing for long-term stay. By developing an operational optimisation model, this paper derives the optimal pricing strategy for long-term stay, and demonstrates that this strategy is beneficial to hotel as well as its customers. Moreover, this paper further analyses the effects on the optimal room rate and hotel revenue, of standard room rate, variable cost, hotel capacity, the number ofindividual customers, as well as the properties of long-term stay. Eventually, a numerical experiment is employed, and the results are consistent with reality.

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Why is it important?

Along with the economic development and tourism prosperity, long-term stay in hotel is very common in realistic practice in recent years. This paper does some research on how hotel pricing for long-term stay. By developing an operational optimisation model, this paper derives the optimal pricing strategy for long-term stay, and demonstrates that this strategy is beneficial to hotel as well as its customers. Moreover, this paper further analyses the effects on the optimal room rate and hotel revenue, of standard room rate, variable cost, hotel capacity, the number ofindividual customers, as well as the properties of long-term stay. Eventually, a numerical experiment is employed, and the results are consistent with reality.