Journal of Korean Society for Quality Management (품질경영학회지)

Korean Society for Quality Management (한국품질경영학회)
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A system design for hotel reservation of the on-line travel agency using an opaque product

불명확 제품을 활용한 온라인 여행사의 호텔 예약 체계 설계

  • Ko, Young Dae (Department of Hotel and Tourism Management, Sejong University) ;
  • Oh, Yonghui (Department of Industrial Engineering, Daejin University) ;
  • Song, Byung Duk (School of Industrial Engineering, Purdue University)
  • 고영대 (세종대학교 호텔관광경영학과) ;
  • 오용희 (대진대학교 산업공학과) ;
  • 송병덕 (퍼듀대학교 산업공학과)
  • Received : 2017.11.21
  • Accepted : 2017.12.04
  • Published : 2017.12.31
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Abstract

Purpose: There are lots of efforts to increase the revenue of on-line travel agency due to the extreme competition in the hospitality industry. One of the way to improve the revenue is applying new concepted service for their business. In this study, it is introduced an innovative system design of hotel reservation for the on-line travel agency using the concept of an opaque product. Methods: By adopting the opaque product at the hotel reservation system, the reservation requests can increase because the customer tends to feel that they purchase the hotel service with relatively cheap price. The overall process for an innovative hotel reservation system is presented and the core algorithm to implement this system is also suggested through a mathematical model based optimization method. Results: To validate and to examine the proposed process and core algorithm, a numerical example is provided with the modified data of the hotels in Seoul metropolitan city. The discount prices and the overall revenue of hotels are generated according to hotel grade. Conclusion: It is confirmed that the revenue of the hotel tends to increase according to its grade. This is because that the customer want to use the new service which applying the concept of opaque product when the higher discount ratio are decided for lower grade hotels.

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References

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