A revenue management approach for tourism logistics optimization

Abstract

AbstractTourism is a very complex industry and represents one of the most profitable activity in the world. A tourist product requires the execution of several multifaceted activities. Indeed, transportation, accommodation, entertainment, food, and beverages represent only some of the products/services required by a tourist. It is evident that a single enterprise cannot provide all the components of a tourist product, but several interrelated actors should collaborate. This leads to a very complex supply tourist chain that needs to be optimized. The relevant theories and methods of logistics can be used to efficiently manage all the flows that are generated in a tourist chain. The definition of appropriate policies, at the different nodes of the chain, can improve the performance of all the actors involved in tourism logistics. In this paper, we concentrate our attention on tour operators that are relevant in the touristic logistic chain since they are involved in several activities. We introduce different revenue management policies to support tour operators in the decision of accepting the most profitable tourist requests. A request consists of flights and hotel booking, characterized by a starting time of the trip and the length of stay at the destination. We allow for various combinations of flight legs and multiple categories of hotels to accommodate a variety of customer preferences and needs. A computational study is carried out by considering different scenarios, and the performance of the considered revenue management policies is analyzed in detail.