= =
} }
Lt t
Y L s s 0
) , (
t Lt t
L Y R
Show income of selling luxury rooms in
period time from 1 to t.
) ( ) )( ( ) )( ( ) , (
1
0
t Mt t Mt t M t Mt
M x
t Mt t M Mt Mt
M
x
t t t M t
M Y R dx p M x f dx p x x f M Y R
t Mt
t
t M
+ + =
= =
} }
Mt t
Y M s s 0
Show income of selling ordinary rooms in period time
from 1 to t.
)) , (
t t M t
M Y R
) ( ) )( ( ) )( (
) ( ) )( ( ) )( ( ) , (
1
0
1
0
t Mt t Mt t M t Mt
M x
t Mt t M Mt Mt
M
x
t
t Lt t Lt t L t Lt
L x
t Lt t L Lt Lt
L
x
t t t t
M Y R dx p M x f dx p x x f
L Y R dx p L x f dx p x x f K Y R
t Mt
t
t M
t Lt
t
t L
+ + +
+ + =
= =
= =
} }
} }
s s
s s
Mt t
Lt t
Y M
Y L
0
0
) , (
t t t
K Y R Show income of selling ordinary rooms in
period time from 1 to t.
For first period (one period remains to serving presented
time) we have:
1 1 1 1 1 1 1 1 1
0
1
1 1 1 1 1 1 1 1 1
0
1 1 1 1
) )( ( ) )( (
) )( ( ) )( ( ) , (
1 1
1
1
1 1
1
1
M M M
M x
M M M M
M
x
L L L
L x
L L L L
L
x
dx p M x f dx p x x f
dx p L x f dx p x x f K Y R
M M
L L
} }
} }
= =
= =
+ +
+ =
s s
s s
1 1
1 1
0
0
M
L
Y M
Y L
In order that we find optimal number for
1
L and
1
M in
target function. We derived once into
1
L and once into
1
M and then equal to zero.
0 )) ( ( ) ) ( 1 ( ) (
) , (
1 1 1 1 1 1
0
1 1 1 1 1 1
1
1 1 1
1
1
= + + =
}
=
L f p L dx L f p L f L p
dL
K Y dR
L L
L
x
L L
L
0 )) ( 1 (
1 1 1
> = L F p
L
So function
) , (
1 1 1
L Y R
L
is not descent and we have:
1
*
1 L
Y L =
0 )) ( ( ) ) ( 1 ( ) (
) , (
1 1 1 1 1 1
0
1 1 1 1 1 1
1
1 1 1
1
1
= + + =
}
=
M f p M dx M f p M f M p
dM
K Y dR
M M
M
x
M M
M
Function ) , (
1 1 1
M Y R
M
is not descent also and we have:
1
*
1 M
Y M =
So we have:
1 1 1 1 1 1 1 1 1
0
1
1 1 1 1 1 1 1 1 1
0
1 1 1
*
1
) )( ( ) )( (
) )( ( ) )( ( ) , (
1 1
1
1
1 1
1
1
M M M M
Y x
M M M M
Y
x
L L L L
Y x
L L L L
Y
x
dx p Y x f dx p x x f
dx p Y x f dx p x x f K Y R
M M
M
M
L L
L
L
} }
} }
= =
= =
+ +
+ =
For second period (two periods remain to the presented
time service) we have
) , ( ) )( ( ) )( (
) )( ( ) )( ( ) , (
1 2 2
*
1 2 2 2 2 2 2 2 2 2
0
2
2 2 2 2 2 2 2 2 2
0
2 2 2 2
2 2
2
2
2 2
2
2
K K Y R dx p M x f dx p x x f
dx p L x f dx p x x f K Y R
M M M
M x
M M M M
M
x
L L L
L x
L L L L
L
x
M M
L L
+ + +
+ =
} }
} }
= =
= =
s s
s s
2 2
2 2
0
0
M
L
Y M
Y L
We have also:
2 2 1
L Y L
L
=
2 2 1
M Y M
M
=
We will have this after substitution.
1 1 2 2 1 1 1 1 1 1
0
1
1 1 2 2 1 1 1 1 1 1
0
1
2 2 2 2 2 2 2 2 2
0
2
2 2 2 2 2 2 2 2 2
0
2 2 2 2
) ) )(( ( ) )( (
) ) )(( ( ) )( (
) )( ( ) )( (
) )( ( ) )( ( ) , (
2 2 1
2 2
1
2 2 1
2 2
1
2 2
2
2
2 2
2
2
M M M M
M Y x
M M M M
M Y
x
L L L L
L Y x
L L L L
L Y
x
M M M
M x
M M M M
M
x
L L L
L x
L L L L
L
x
dx p M Y x f dx p x x f
dx p L Y x f dx p x x f
dx p M x f dx p x x f
dx p L x f dx p x x f K Y R
M M
M
M
L L
L
L
M M
L L
+ +
+ +
+ +
+ =
} }
} }
} }
} }
= =
= =
Because we want to find optimal number
2
L and
2
M
we derived above target function once into
2
L and once
into
2
M and then equal to zero.
0 )) ( 1 ( ) ) ( 1 (
) , (
2 2 1 1 2 2
0
2 2
2
2 2 2
2
2
= =
}
=
L Y F p dx L f p
dL
K Y dR
L L L
L
x
L
L
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According to above equation
2
L calculate after
simplification from below equation
)) ( 1 ( )) ( 1 (
*
2 2 1 1
*
2 2 2
L Y F p L F p
L L L
=
Since
*
2
L is part of
2 L
Y we have
1 0
2 2 2
*
2
s s =
L
Y L
We have also:
0 )) ( 1 ( ) ) ( 1 (
) , (
2 2 1 1 2 2
0
2 2
2
2 2 2
2
2
= =
}
=
M Y F p dx M f p
dM
K Y dR
M M M
M
x
M
M
According to above equation
2
M calculate after
simplification from below equation
)) ( 1 ( )) ( 1 (
*
2 2 1 1
*
2 2 2
M Y F p M F p
M M M
=
Since
*
2
M is part of
2 M
Y we have
1 0
2 2 2
*
2
s s =
M
Y M
As result we have:
) , ( ) )( (
) )( ( ) )( (
) )( ( ) , (
1 2 2
*
1 2 2 2 2 2 2
2 2 2 2
0
2 2 2 2 2 2 2
2 2 2 2
0
2 2 2 2
2 2 2
2 2
2 2 2 2
2 2
2
K K Y R dx p Y x f
dx p x x f dx p Y x f
dx p x x f K Y R
M M M M
Y x
M M M M
Y
x
L L L L
Y x
L L L L
Y
x
M M
M
M L L
L
L
+ +
+ +
=
}
} }
}
=
=
=
=
For third period (three periods remains presented time
service) we have.
) , ( ) )( (
) )( ( ) )( (
) )( ( ) , (
2 3 3
*
2 3 3 3 3 3
3 3 3 3
0
3 3 3 3 3 3
3 3 3 3
0
3 3 3 3
3 3
3
3 3 3
3
3
K K Y R dx P M x f
dx P x x f dx P L x f
dx P x x f K Y R
M M M
M x
M M M M
M
x
L L L
L x
L L L L
L
x
M
M L
L
+ +
+ +
=
}
} }
}
=
=
=
=
s s
s s
3 3
3 3
0
0
M
L
Y M
Y L
We also have:
) )( 1 ( ) 1 (
3 3 2 2 2 2 2 2 2 2 1 1
L Y Y Y Y L Y Y L
L L L L L L
= = = = =
) (
3 3 2 2 2 2
L Y Y L
L L
= =
) )( 1 ( ) 1 (
3 3 2 2 2 2 2 2 2 2 1 1
M Y Y Y Y M Y Y M
M M M M M M
= = = = =
) (
3 3 2 2 2 2
M Y Y M
M M
= =
After substitution we will have:
1 1 3 3 1
) (
1 1 1 1 1
) )( 1 (
0
1
1 1 3 3 2 1
) )( 1 (
1 1 1 1 1
) )( 1 (
0
1
2 2 3 3 2 2
) (
2 2 2 2 2
) (
0
2
2 2 3 3 2 2
) (
2 2 2 2 2
) (
0
2
3 3 3 3 3 3 3 3 3
0
3
3 3 3 3 3 3 3 3 3
0
3 3 3 3
) ) )(( ( ) )( (
) ) )( 1 )(( ( ) )( (
) ) ( )( ( ) )( (
) ) ( )( ( ) )( (
) )( ( ) )( (
) )( ( ) )( ( ) , (
3 3 1
3 3 2
1
3 3 2 1
3 3 2
1
3 3 2 2
3 3 2
2
3 3 2 2
3 3 2
2
3 3
3
3
3 3
3
3
M M M M
M Y x
M M M M
M Y
x
L L L L
L Y x
L L L L
L Y
x
M M M M
M Y x
M M M M
M Y
x
L L L L
L Y x
L L L L
L Y
x
M M M
M x
M M M M
M
x
L L L
L x
L L L L
L
x
dx P M Y x f dx P x x f
dx P L Y x f dx P x x f
dx P M Y x f dx P x x f
dx P L Y x f dx P x x f
dx P M x f dx P x x f
dx P L x f dx P x x f K Y R
M M
M
M
L L
L
L
M M
M
M
L L
L
L
M M
L L
+ +
+ +
+ +
+ +
+ +
+ =
} }
} }
} }
} }
} }
} }
=
=
=
=
= =
= =
Because we want to find optimal number
3
L and
3
M in
target function. We derived target function once into
3
L
and once into
3
M and then equal to zero.
Derived function into
3
L is:
0 ) ) 1 (( 1 )( 1 (
)) ( 1 ( ) ) ( 1 (
) , (
2 2 1 2 1
2 2 2 2 2 3 3
0
3 3
3
3 3 3
3
3
=
=
}
=
L L
L L L
L
x
L
Y F P
Y F P dx L f P
dL
K Y dR
L
According to above equations
3
L calculate after
simplification from below function
) ) 1 (( 1 )( 1 (
)) ( 1 ( )) ( 1 (
2 2 1 2 1
2 2 2 2 2 3 3 3
L L
L L L
Y F P
Y F P L F P
+
=
As result:
1 0
3 3 3
*
3
s s =
L
Y L
Derived function into
3
M is:
0 ) ) 1 (( 1 )( 1 (
)) ( 1 ( ) ) ( 1 (
) , (
2 2 1 2 1
2 2 2 2 2 3 3
0
3 3
3
3 3 3
3
3
=
=
}
=
M M
M M M
M
x
M
Y F P
Y F P dx M f P
dM
K Y dR
M
According to above equations
3
M calculate after
simplification from below function
) ) 1 (( 1 )( 1 (
)) ( 1 ( )) ( 1 (
2 2 1 2 1
2 2 2 2 2 3 3 3
M M
M M M
Y F P
Y F P M F P
+
=
As result
1 0
3 3 3
*
3
s s =
M
Y M
For forth period (four periods remain to presented time
service) we have:
) , ( ) )( (
) )( ( ) )( (
) )( ( ) , (
3 4 4
*
3 4 4 4 4 4
4 4 4 4
0
4 4 4 4 4 4
4 4 4 4
0
4 4 4 4
4 4
4
4 4 4
4
4
K K Y R dx P M x f
dx P x x f dx P L x f
dx P x x f K Y R
M M M
M x
M M M M
M
x
L L L
L x
L L L L
L
x
M
M L
L
+ +
+ +
=
}
} }
}
=
=
=
=
s s
s s
4 4
4 4
0
0
M
L
Y M
Y L
After substitution we will have:
 
 
  ) ) 1 )( 1 (( 1 ) 1 )( 1 (
) ) 1 ( ( 1 ) 1 (
) ( 1
) ) ( 1 (
) , (
3 3 2 1 1 3 2
3 3 2 2 2 3 2
3 3 3 3 3
4 4
0
4 4
4
4 4 4
4
4
L L
L L
L L
L
L
x
L
Y F P
Y F P
Y F P
dx L f P
dL
K Y dR
L
=
}
=
According to above equation
4
L calculates after the
simplification from below equation.
I nt ernat i onal Journal of E mergi ng Trends & Technol ogy i n Comput er Sci ence (I JE TTCS)
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j
i
 
 
  ) ) 1 )( 1 (( 1 ) 1 )( 1 (
) ) 1 ( ( 1 ) 1 (
) ( 1 )) ( 1 (
3 3 2 1 1 3 2
3 3 2 2 2 3 2
3 3 3 3 3 4 4 4
L L
L L
L L L
Y F P
Y F P
Y F P L F P
+
+
=
As result:
1 0
4 4 4
*
4
s s =
L
Y L
Derived function into
4
M is:
 
 
  ) ) 1 )( 1 (( 1 ) 1 )( 1 (
) ) 1 ( ( 1 ) 1 (
) ( 1
) ) ( 1 (
) , (
3 3 2 1 1 3 2
3 3 2 2 2 3 2
3 3 3 3 3
4 4
0
4 4
4
4 4 4
4
4
M M
M M
M M
M
M
x
M
Y F P
Y F P
Y F P
dx M f P
dM
K Y dR
M
=
}
=
According to above equation
4
M calculates after the
simplification from below equation
 
 
  ) ) 1 )( 1 (( 1 ) 1 )( 1 (
) ) 1 ( ( 1 ) 1 (
) ( 1 )) ( 1 (
3 3 2 1 1 3 2
3 3 2 2 2 3 2
3 3 3 3 3 4 4 4
M M
M M
M M M
Y F P
Y F P
Y F P M F P
+
+
=
As result:
1 0
4 4 4
*
4
s s =
M
Y M
For fifth period (fifth periods remain to presented time
service) we have:
L
L
M
M
L
L L L L
x
L L L
x L
M
M M M M
x
M M M
x M
*
R (Y , K ) f (x )(x P )dx
f (x )(L P )dx
f (x )(x P )dx
f (x )(M P )dx
R (Y K , K )
=
=
=
=
=
+
+
+
+
}
}
}
}
5
5
5 5
5
5
5 5
5 5 5 5 5 5 5 5
0
5 5 5 5 5
5 5 5 5 5
0
5 5 5 5 5
4 5 5 4
s s
s s
5 5
5 5
0
0
M
L
Y M
Y L
We derived target function once into
5
L and once into
5
M and then equal to zero.
Derived function into
5
L is:
0
) , (
5
5 5 5
=
dL
K Y dR
 
 
 
  ) ) 1 )( 1 )( 1 (( 1 ) 1 )( 1 )( 1 (
) ) 1 )( 1 ( ( 1 ) 1 )( 1 (
) ) 1 ( ( 1 ) 1 (
) ( 1 )) ( 1 (
4 4 3 2 1 1 4 3 2
4 4 3 2 2 2 4 3 2
4 4 3 3 3 4 3
4 4 4 4 4 5 5 5
L L
L L
L L
L L L
Y F P
Y F P
Y F P
Y F P L F P
+
+
+
=
As result:
1 0
5 5 5 5
s s =
L
Y L
Derived function into
5
M is
0
) , (
5
5 5 5
=
dM
K Y dR
 
 
 
  ) ) 1 )( 1 )( 1 (( 1 ) 1 )( 1 )( 1 (
) ) 1 )( 1 ( ( 1 ) 1 )( 1 (
) ) 1 ( ( 1 ) 1 (
) ( 1 )) ( 1 (
4 4 3 2 1 1 4 3 2
4 4 3 2 2 2 4 3 2
4 4 3 3 3 4 3
4 4 4 4 4 5 5 5
M M
M M
M M
M M M
Y F P
Y F P
Y F P
Y F P M F P
+
+
+
=
As result:
1 0
5 5 5 5
s s =
M
Y M
According to above stages we achieve below total chart:
Table 1: the coefficients of variation in total state for
luxury rooms
As result for calculation equation 2 > n in each stage is
obtained below total formula.
[ [
= = =


.

\



.

\



.

\

=
1
1 1 1
) 1 ( ) (
*
1 )) ( 1 (
n
i
i
j
i
j
ij n L i n i n L ij n n n
A Y F P A L F P
As the same way for ordinary rooms calculation equation
2 > n in each stage is obtained below total formula.
[ [
= = =


.

\



.

\



.

\

=
1
1 1 1
) 1 ( ) (
*
1 )) ( 1 (
n
i
i
j
i
j
ij n M i n i n M ij n n n
A Y F P A L F P
Since staying travelers (time servicing) in rented hotel
rooms are not obvious hospitality industries against
airlines. There is always this probability that present
shortstaying travelers will cause loss of attraction
opportunity probability passengers who want to have
longstaying.
This state can be assumed approximately equal to virtual
successive discussion.
(In successive controlling more expensive classes in
completion of capacity have possible use less expensive
classes, too. But this state is not true for the classes with
cheaper prices.)
I nt ernat i onal Journal of E mergi ng Trends & Technol ogy i n Comput er Sci ence (I JE TTCS)
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Volume 1, Issue 4, November December 2012 ISSN 22786856
Vol ume 1 , I ssue 4 November  December 2 0 1 2 Page 1 1
Another problem we face in hotels is that timestaying
travelers are variable and they are not identical. We can
achieve the allocated optimal capacity for one special day.
According to timestaying travelers are variable for other
days (day after special days) what we do to find allocated
optimal capacity for the next days.
Hotels strategy usually is like this that they start presale
some months ago. Travelers who make reservation for
certain days have this facility that he can make
reservation room for future days if hotels dont start pre
sale.
So that there are two possibilities a demanded person is
next day of service or not.
Number of remaining luxury rooms for j next days after
servicing
=
=
L
i
ij Ln Ln
Y Y
1
'
After we find the number of vacant room for everyday it
calculate like allocated optimal capacity room. For
ordinary rooms do according above method.
4. CONCLUSION
Presented model with simple and reasonable method has
effective relationship between control rooms inventory
and pricing strategy.
Model uses discretetime dynamic programming for
solving which convert to n systems with n unknown. This
kind of modeling and way of answering use discretetime
dynamic programming. Answer the problem does with
certain clear principles in realistic world. They are
simpler than Available models which ends to complex
math. With this solution method timestaying travelers
are variable. For each period vacant rooms information
should solve with mentioned method again.
REFERENCES
[1] Bitran, G.r and S.M Gilbert. "Managing hotel
reservations with uncertain arrivals", operation
research.1996.
[2] Paul coldman, Richard freking, "Models and
Techniqes for hotel Revenue Management Using a
Rooling Horizon", 2001
[3] Mark haley, jone inge, "Hotel Revenue
Management", 2004
[4] Gabriel Bitran, Rene Caldentey, "An Overview of
Pricing Models for Revenue Management", December,
2002
[5] Serguei Netessine, Robert Shumsky,"Introduction to
the Theory and Practice Of Yield Management"
[6] Kalyan T.Talluri, Garrett j.van ryzin, "The Theory
and Practice Of Revenue Management"
[7] Kevin Pak, Nanda Piersma, "Airline Revenue
Management An Overview Of OR Techniques 1982
2001, January 2002
[8] Dimitris Bertsimas, Ioana Popescu, "Revenue
Management in a Dynamic Network Enviroment"
[9] Joern Meissner, "Dynamic Pricing Strategies for
MultiProduct Revenue Management Problems', 2004
[10] AaltoSet.al. Ville.a, Halonenb. Markus(2004),
Attractive prices in grocery and automobile markets
why is such pricing used?, Journal of Retailing and
Consumer Services Vol.11 pg.299306
ij
o =
1: if demanded person for luxury
I room for j day after due date
0: otherwise