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Numerous optimization heuristics for allocation and overbooking exist for the airline industry, whose perishable asset is the airline seat. When an airline departs, no revenue is gained from the empty seat(s). In the hotel industry, the perishable asset is the hotel room?once a room is left empty for a night, that night's revenue cannot be recaptured. The literature on yield management heuristics for the hotel industry is sparse. For the hotel operating environment, no research has adequately (1) integrated overbooking with allocation, (2) modeled the phenomenon of hotel patrons extending or contracting their stay at a moment's notice, or (3) performed a realistic performance comparison of alternative heuristics...
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