What is the simplest, but still decent, dynamic pricing algorithm you can think of, which can be used with minimal data sets and just a few "hotel rooms"? What algorithm would you use for demand projection with minimal data?

I'm thinking of one that can use a price ladder and then run an LP and just pick a price inside the ladder, depending on demand projections, but I am sure there's better and simpler out there. Documentation on yield management doesn't seem to be as good as I had hoped.

Thanks

asked 06 Oct '10, 13:59

Jorchi's gravatar image

Jorchi
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since u have a price ladder, it is a discrete problem. Simply enumerate along with some (thoughtful) pruning and preprocessing of the boring areas of the feasible space.

link

answered 11 Nov '10, 18:33

shiva%204's gravatar image

shiva 4
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accept rate: 11%

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Asked: 06 Oct '10, 13:59

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