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http://dx.doi.org/10.7469/JKSQM.2017.45.4.957

A system design for hotel reservation of the on-line travel agency using an opaque product  

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)
Publication Information
Journal of Korean Society for Quality Management / v.45, no.4, 2017 , pp. 957-968 More about this Journal
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.
Keywords
Innovative Service Design; Opaque Product; Hotel Reservation; Core Algorithm; Service Process;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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