An integrated fuzzy-stochastic model for revenue management: the hospitality industry case

Abstract

In this paper we propose a fuzzy model for the hotel revenue management under an uncertain and vague environment. Fuzziness of objective and constraint functions have been incorporated into the stochastic model of Liu et al (2006) to show the effect of uncertainty on the optimal demand. By changing the relaxation parameters of the objective function we have found a set of optimal solutions with, in most of the cases, a value of the objective function equal to that of the pure stochastic counterpart. In this sense, our model provides several alternative optimal room allocations to which the decision maker can refer to face the real customers’ demand. The fuzzy revenue optimization model we propose demonstrates to be a useful environment to capture both incertainty and imprecision in solving the optimal allocation of rooms for profit maximization.