STUDY ON HOTEL REVENUE MANAGEMENT WITHOUT INCORPORATING COMPETITION

Hafizha Nabila Absari, Prof. Ir. Nur Aini Masruroh, S.T., M.Sc., Ph.D., IPU., ASEAN Eng

2016 | Skripsi | S1 TEKNIK INDUSTRI

Revenue Management (RM) is an appropriate method to win the competition in hotel industries. In its development, RM models which often used by the players is quite varied, from monopoly model, duopoly model, up to oligopoly model. So far, oligopoly model is the best model to represent real condition. However, constructing an oligopoly model is not easy, since the data of every competitors’ are hard to obtain. This is what underlies the emergence of a theory which explained that the model without explicitly incorporating competition is simpler and provides better result. Therefore, this study is trying to prove whether the theory can be applied in hotel industries and whether the results of this theory is better than oligopoly model in hotel industries. To prove this theory, this research will be done in three scenarios,which are known slope, known intercept, and unknown slope and unknown intercept. Those three scenarios will be built in pricing-based RM method and in stochastic demand model. In addition, each scenario will be evaluated according to long-run market response and short-run market response. Furthermore, the predicted demand and predicted revenue will be compared with the result of oligopoly model for the same data. The result showed that model without explicitly incorporating competition is not representative for long run market response. But, the result is representative for the short-run market response. Even so, the oligopoly model still gives better result than this model.

Kata Kunci : simplified oligopoly model, short run, long run.