Civil Engineering Reference
In-Depth Information
Fig. 2
Demand curve
Price
Fig. 3
The relation between
room price and demand
Regular price
Tabl e 1
Room allocation
Type of strategy
Type of strategy
Xa
1
b
1
c
1
Y
a
2
b
2
c
2
A
1
10
10
10
A
2
10
5
30
B
1
30
20
40
B
2
40
10
50
C
1
60
70
50
C
2
50
85
20
becomes 100 % when regular price is 10,000 JPY. If demand decreases, the more
the regular price is higher than 10,000 JPY. Even if regular price is cheaper than
10,000 JPY, lose profit. So assume that regular price never becomes cheaper than
10,000 JPY.
Number of customers
=
number of rooms (
X
+
Y
)
−
regular price
P
x
)
Z
x
The numbers of people staying in hotel
X
Z
y
The numbers of people staying in hotel
Y
P
x
The regular price of hotel
X
P
y
The regular price of hotel
Y
80 % Let me assume that hotel demand becomes average 80 %.
Each hotel develops a strategy consisting of three patterns
a
,
b
,and
c
as shown
in Table
1
.
From the past data of experiences, we can classify customers into type (1) and
type (2). A customer of type (1) focuses on room price as low as possible; on the
other hand, a customer of type (2) emphasizes a hotel brand. In the type (2) case,
customers decide a hotel encountered first. For example, in the case of type (1),
people want to choose a low-price room as possible. However, when rooms of period
Z
x
=
80
−
(
P
x
−
P
y
)
,
Z
y
=
80
−
(
P
y
−
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