Overbooking Strategy with Customer Arrival Rate Distribution Unknown and Service Capacity Adjustable
The overbooking strategy is a common revenue management strategy for service providers to improve their own profits and reduce the waste of service resources.In this paper,the robust optimization method is employed to construct the relevant newsboy model,aiming at the strategy-making problem of enterprise overbooking in situations where the distribution of customer arrival rates is unknown.The overbooking strategy with adjustable service capacity is analyzed,and the overbooking strategy that maximizes the expected profit of the enterprise is obtained by calculating the model.The results show that overbooking strategy can make the enterprise more profitable when the service price,penalty cost,and the mean-variance of customer arrival rate satisfy a particular quantitative relationship.In addition,the optimal strategy for unknown distribution has better benefits when the customer arrival rate fluctuates wildly.