The objective of the proposed model is to maximise the overall revenue from all room types by introducing a dynamic price strategy that adjusts prices in response to the fluctuation demand through the year.

The objective of the proposed model is to maximise the overall revenue from all room types by introducing a dynamic price strategy that adjusts prices in response to the fluctuation demand through the year. The hotel’s main goal is to set the optimal prices for first-class suites, junior suites and deluxe rooms based on the anticipated demand. Step 1: Determine decision variables Let p1H = price per night for first class suites under High demand Let p1m = price per night for first class suites under Medium demand Let p1L = price per night for first class suites under Low demand Let p2H = price per night for junior suites under High demand Let p2M = price per night for junior suites under Medium demand Let p2L = price per night for junior suites under Low demand Let p3H = price per night for deluxe rooms under High demand Let p3M = price per night for deluxe rooms under Medium demand Let p3L = price per night for deluxe rooms under Low demand Let q1H = Demand per night for first class suites under High demand Let q1M = Demand per night for first class suites under Medium demand Let q1L = Demand per night for first class suites under Low demand Let q2H = Demand per night for junior suites under High demand Let q2M = Demand per night for junior suites under Medium demand Let q2L = Demand per night for junior suites under Low demand Let q3H = Demand per night for junior suites under High demand Let q3M = Demand per night for junior suites under Medium demand Let q3L = Demand per night for junior suites under Low demand Step 2: Identify the relationship between demand and price q = demand p = price a,b = coefficients q = a + ( b * p) Step 3: Set the objective function Max Z = 0.4 * (p1H * q1H + p2H * q2H + p3H * q3H) + 0.3 * (p1m * q1M + p2M * q2M + p3M * q3M) + 0.3 * (p1L * q1L + p2L * q2L + p3L * q3L) Step 4: Set the Constraints High demand Constraint: q1H = 35 – 0.005 * p1H q2H = 90 – 0.03 * p2H q3H = 240 – 0.06 * p3H Medium demand Constraint: q1M = 16 – 0.003 * p1m q2M = 45 – 0.02 * p2M q3M = 200 – 0.05 * p3M Low demand Constraint: q1L = 8 – 0.002 * p1L q2L = 30 – 0.02 * p2L q3L = 180 – 0.08 * p3L Capacity Constraint: Let F be the optimal number of first class suites Let J be the optimal number of junior suites Let D be the optimal number of deluxe rooms q1H