Capacity Management in Hotel Industry for Turkey

2017 ◽  
pp. 286-304 ◽  
Author(s):  
Deniz Efendioğlu ◽  
Serol Bulkan
Keyword(s):  
Probability Distribution ◽  
Supply And Demand ◽  
Hotel Industry ◽  
Capacity Management ◽  
Cost Ratio ◽  
Main Question ◽  
Hotel Room ◽  
Optimal Capacity ◽  
Operating Leverage ◽  
Capital Intensive

The hotel industry is capital-intensive with high operating leverage in providing accommodations. Examining final costs play very important role in determining of overcapacity and undercapacity. Turkey's experiencing growth in tourism and has remarkable increases in accommodation. This situation possesses great importance for the capital groups investing in this area. How these groups and local tradesman implement a strategy on capacity management is the main question. Single period inventory model is used at the analysis phase and several interests are examined on this topic. Future Room demand is estimated by ARIMA and in estimating cost of undersupply earnings before taxes is used per room night sold. Combining the derived cost ratio with the future room demand and probability distribution estimated from the ARIMA method, the optimal hotel room capacity can be determined. The purpose of the study is to examine hotel room supply and demand for optimal capacity in Turkey.

Simultaneous Optimization of Capacity Decision and Pricing Policy of a Hotel in Stochastic Demand Environment

2019 ◽  
Vol 10 (1) ◽  
pp. 10-22
Author(s):  
Shantanu Shankar Bagchi
Keyword(s):  
Decision Maker ◽  
Hotel Industry ◽  
Stochastic Demand ◽  
Simultaneous Optimization ◽  
Pricing Policy ◽  
Optimal Capacity ◽  
Decision Variables ◽  
Starting Point ◽  
Capital Intensive ◽  
Capacity Decision

In the context of the hotel industry, one of the biggest and capital-intensive challenges a decision maker has is to decide on the capacity of the hotel. While taking this decision, the decision maker needs to take seasonality of demand into consideration. Also, the interplay between price and demand also play a major role on this decision. In this study, an effort is made to simultaneously identify the optimal capacity and pricing policy of a hotel in the presence of a stochastic demand environment. Differential calculus is used to identify the solution. Both capacity and price are considered as decision variables for the decision maker. To comply with reality, the seasonality in demand is incorporated in the form of bi-level demand. Numerical illustrations are also shown to explain the decision-making process. This study offers a starting point for an entrepreneur to decide both capacity and pricing for their upcoming hotel.

Optimal capacity and operation design of a robot logistics system for the hotel industry

2020 ◽  
Vol 76 ◽  
pp. 103971 ◽  
Author(s):  
Woo Jin Lee ◽  
Sung Il Kwag ◽  
Young Dae Ko
Keyword(s):  
Hotel Industry ◽  
Logistics System ◽  
Optimal Capacity

scholarly journals Are we explaining the movement of hotel room rates correctly?

Tourism ◽  
2020 ◽  
Vol 68 (1) ◽  
pp. 21-33
Author(s):  
Chew Ging Lee
Keyword(s):  
Demand Function ◽  
Hotel Industry ◽  
Small Sample ◽  
Annual Data ◽  
Occupancy Rate ◽  
Bounds Testing ◽  
Excess Supply ◽  
Hotel Room ◽  
Bounds Testing Approach ◽  
Testing Approach

Demand function, inverse demand function or market equilibrium condition has been used to estimate the empirical models that explain the movement of hotel room rates. However, hotels generally face excess supply of rooms. This research paper develops a simple theoretical model to link hotel room rates to excess supply of hotel rooms. The annual data of Singapore from 1991 to 2017 is used to test this framework. Due to small sample size, with only 27 observations, the bounds testing approach to cointegration is applied on the annual data of hotel industry in Singapore because the obtained estimators are super-consistent. It is found that average hotel room rate and average hotel occupancy rate are cointegrated to confirm hotel room rates and excess supply of hotel rooms are inversely correlated. In order to avoid model mis-specification, major crises are captured by dummy variables which are treated as fixed regressors in the bounds testing approach to cointegration. The empirical and theoretical frameworks used in this study suggest that when hotel occupancy rate is used as an independent variable in modelling the determination of hotel room rates, a researcher is adopting excess supply framework developed in this paper. Furthermore, this framework teaches students in tourism a simplified way to explain the movement of hotel room rates, while still reminding students about the complexity of hotel industry.

Lateral Collaboration in Semiconductor Industry Supply Networks

2014 ◽  
Vol 7 (3) ◽  
pp. 39-79
Author(s):  
Bikram K. Bahinipati ◽  
S.G. Deshmukh
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Resource Sharing ◽  
Semiconductor Industry ◽  
Supply And Demand ◽  
Managerial Decision ◽  
Supply Networks ◽  
Penalty Cost ◽  
Optimal Capacity ◽  
Capacity Decision

The interactive emphasis of vertical and horizontal collaboration in the semiconductor industry supply chain (SSC) support the buyer(s) performing procurement activities with supplier(s) through joint planning and decision-making, information sharing, resource sharing and incentive alignment. The paper proposes a framework to explore the resource sharing conditions under which enterprises are motivated to collaborate and the conditions in which such collaboration would be successful. A lateral collaboration scheme is proposed, which can be operated by the e-market intermediary to motivate buyers and suppliers to collaborate under competion. The results of this study demonstrate that the proposed collaboration mechanism yields an effective infrastructure for each members of the supply chain that supports efficient exchange of information and resources among all members. It is expected that the proposed scheme would enable the optimal capacity decision among competing suppliers for minimum expected total cost of the supply chain by appropriate selection of ordering quantity and penalty cost as imposed by the e-market intermediary. It is argued that the managerial decision-making in procurement perspective contribute to the matching between supply and demand for gaining mutual benefits.

scholarly journals Optimum Capacity and Placement of Storage Batteries Considering Photovoltaics

2019 ◽  
Vol 11 (9) ◽  
pp. 2556 ◽  
Author(s):  
Hiroki Aoyagi ◽  
Ryota Isomura ◽  
Paras Mandal ◽  
Narayanan Krishna ◽  
Tomonobu Senjyu ◽  
...  
Keyword(s):  
Power System ◽  
Demand Response ◽  
Supply And Demand ◽  
Point Of View ◽  
Storage Battery ◽  
Optimal Arrangement ◽  
Economic Point ◽  
Optimal Capacity ◽  
One Year ◽  
Storage Batteries

In recent years, due to the enforcement of the Feed-in tariff (FIT) scheme for renewable energy, a large number of photovoltaic (PV) has been introduced, which causes fluctuations in the supply-demand balance of a power system. As measures against this, the introduction of large capacity storage batteries and demand response has been carried out, and the balance between supply and demand has been adjusted. However, since the increase in capacity of the storage battery is expensive, it is necessary to optimize the capacity of the storage battery from an economic point of view. Therefore, in the power system to which a large amount of photovoltaic power generation has been introduced, the optimal capacity and optimal arrangement of storage batteries are examined. In this paper, the determination of storage battery placement and capacity considering one year is performed by three-step simulation based on probability density function. Simulations show the effectiveness of storage batteries by considering the introduction of demand response and comparing with multiple cases.

ATTITUDES AND OPINIONS OF HOUSEKEEPING MANAGERS IN THE CROATIAN HOTEL INDUSTRY

2004 ◽  
Vol 10 (3-4) ◽  
pp. 53-64
Author(s):  
Zdenko Cerović ◽  
Tea Baldigara
Keyword(s):  
Hotel Industry ◽  
Middle Level ◽  
Hotel Management ◽  
Total Revenue ◽  
Hotel Room ◽  
Second Home ◽  
Hotel Performance ◽  
Key Factor ◽  
And Task

Hotel services, comprising an array of various services provided by the hotel, can be classified as basic and secondary services. Guests choose to stay at a hotel based on its rooms. The hotel room is a second home to the guest, and it provides the hotel management with 40% of total revenue. A well-furnished and appealing room is the primary task of the hotel management. In establishing the quality of the hotel room, a key role is assigned to the hotel housekeeper, whose functions and task place her/him in the middle level of hotel management. Fundamental to hotel performance, the housekeeper is a key factor in providing an appealing room to the guest who is willing to pay exactly how much the room is actually worth on the market.

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