Long-term stays are common in the hotel business. Therefore, it is crucial to consider the allocation of the available rooms to a stream of customers requesting to stay multiple days. This requirement leads to solving large-scale dynamic network revenue management problems, which are computationally challenging. A remedy is to apply decomposition approaches so that an approximate solution can be obtained by solving many single-day problems. In this study, we investigate optimal room allocation policies in hotel revenue management. We work on various decomposition methods to find reservation policies for advance bookings and stay-over customers. We also devise solution algorithms to solve large problems efficiently.
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